Q: Pat, in the February issue of Canadian Wealth Advisor, you recommended the SPDR S&P 500 ETF. Why would this be better than the iShares XSP, which is hedged to the Canadian dollar. Are they not the same?

A: No one can consistently predict currency movements, but we still feel that most investors should remain invested in U.S. stocks. Note that even if the U.S. dollar should fall against the Canadian dollar, your U.S. stocks can still appreciate in value even while the… Read More

Q: Hi, Pat. Regarding Newmont Mining, your “buy” recommendation is always tempered with “for investors who want to own a gold stock.” Can you explain why investors might want to own a gold stock, and the pros and cons of owning a gold stock?

A: We don’t see golds as an essential part of a sound portfolio, and, in fact, gold investing is a poor choice for most investors. For one thing, it involves considerably more guesswork than other aspects of investing.

The markets for widely traded goods like gold… Read More

Q: Dear Pat: I hold the following three U.S. bank stocks in my portfolio: Bank of America, J. P. Morgan Chase, and Citigroup. I would like a quick assessment on whether I should keep all three or sell all. Also, should I consolidate to one of the three? If so, which one?

A: The decision about whether to hold/buy/sell is a personal one, depending on your individual circumstances and what else you hold in your portfolio. However, in general, if you need/want to sell something from your portfolio, you are probably better off selling our “holds” than… Read More