investment

Cash can be a useful asset in a balanced portfolio, although the very low-interest rates of the last decade greatly diminished the attractiveness of that strategy. Nevertheless, many investors will hold a portion of their portfolios in cash to cover emergency expenses or to take advantage of market opportunities as they arise.


Cash has provided reasonable returns over the long term....

Fund providers in Canada and the U.S. continue to actively introduce new ETFs. This month we highlight three recent additions.


Bank of Montreal (BMO) recently launched three asset allocation ETFs that invest in other BMO ETFs.


Each of the three ETFs acts as “fund of funds,” with its low 0.20% MER factoring out the underlying fees of its component funds.


BMO CONSERVATIVE ETF $31.31 (Toronto symbol ZCON) is designed to provide income and moderate long-term capital appreciation by investing in global equity and fixed-income ETFs....

Malaysia has an steady track record of economic growth and ranks as one of the most competitive nations among the emerging markets. Its stock market performance remains weak. However, greater political certainty following the the country’s 2018 election should help drive stock market growth....

The attraction of holding cash has diminished greatly over the past decade due to a low interest rates. Still, many investors hold it in their investment portfolios. That’s not necessarily to earn income, but as a byproduct of their normal portfolio activities or as a reserve, so they can take advantage of market opportunities as they arise.


Here are three low-risk money market ETFs that let investors hold cash and at the same time earn reasonable income....

RIOCAN REAL ESTATE INVESTMENT TRUST $27 (www.riocan.com) owns all or part of 230 shopping centres and other properties across Canada. In a response to slowing customer traffic and online shopping, the REIT continues to add office and residential space to its retail properties....

These two high-quality firms are a great way to diversify your Finance-sector holdings outside of the big banks. Given their current stock prices, we see just one of the two as a buy for right now.


GREAT-WEST LIFECO INC. $30 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; shares outstanding: 988.7 million; Market cap: $29.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 5.5%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s second-largest insurance company, after Manulife Financial....

Aggressive stocks, such as those featured in the portfolio on page 80, can lead to big returns. However, due to the risky or cyclical nature of their businesses, investment in higher-growth stocks can also produce big losses. That’s why you should limit your aggressive holdings to no more than about 30% of your overall portfolio.


We continue to like the long-term prospects of the best aggressive stocks....

Following these tips for new investors will help keep you away from impulsive selling, poor advisors, Pendulum Theory and more—and you’ll show better investing results

Keep metal stocks to only a limited part of your portfolio and you can profit in the right market without excessive risk

A boom seems to be underway in newsletters that purport to show you how you can make money in options trading. These newsletters claim to have used digital technology to “crack the secret code” of success in the options market. They can point to a string of options trades they recommended that made money.

I suspect the only secret code they’ve cracked is the one that showed them how to use digital marketing to create a boom in options-focused newsletters, which once made up only a tiny part of investment publishing.

The problem you have to overcome in options trading is the same one you face if you go to Las Vegas and try to make a living as a gambler.

To begin, the gambling casino—“the house”—takes a percentage out of every bet....