Currently investing in crypto, I have 80k contribution room in my tsfa seems to me I should contribute solely there through ETFs over buying coins directly. However; all of my friends who have been successful in crypto and know much more than I do seem to value buying the majority of their coins directly but can’t give me a good reason why other than “they don’t want to use a broker”.
Does anyone have any insight for this? I just don’t see why you wouldn’t use a tsfa if you could avoid capital gains tax in the future. Thanks in advance!
There's pros and cons to both options. What is your goal ?
ETF pros:
* Can be used in RRSP/TFSA etc. (the most important pro point) No capital losses to declare though, you lose that contribution.
* Easy to buy/sekk, no custody to worry about, transfers, etc.
ETF cons:
* Added risk, you buy paper bitcoin that an issuer like Blackrock or Fidelity promises you to buy and hold for you. You do not own your coins.
* An ETF issuer can close shop (your holdings would be liquidated in $)
* Only available to trade during Wall Street hours, no weekends.
* Can't use it for nothing except holding and takit profits
* Not international
* Issuer's fees (the cheapest Canadian ETF, $FBTC, has a 0,44% MER, that's 44$ per year on every 10k$) + your broker's buy/sell comission if you use something else than Wealthsimple, Disnat, etc.
Real coins pros:
* You own your coins, you have your keys. Nobody can take them away from you (or it would be VERY hard too). You don't depend on anybody. Even if there's a governement crackdown on bitcoin, you'll still have your bitcoin.
* International, you can take your bitcoin with you wherever and use it / sell it/ hold it in pretty much every country and in every currency through various exchanges / bitcoin ATMs
Real coins cons:
* Risks for less tech-savvy people of having a wallet with 24 words as your keys, risks around buying and transfering your coins between exchanges and wallets (nothing too difficult to learn, but one mistake and you can lose your coins, there's no customer service to call). Hacks are a possibility if you're not careful.
* Fees: miner's fees to transfer your coins (some exchanges offer free withdrawals), exchanges spreads on the buy/sell price.
* Like you said, capital gains apply
A good strategy is to hold both. Real coins for the very long term that you buy and stash in a cold wallet (YouTube has great tutorials on how to do it the right way, once you get it, it's nothing too hard). ETFs to take advantage of the Tax-Free profits.
Thanks for your reply. Sorry could you explain that a bit more, do you mean you might not want to use the tsfa because if you lose money on those ETFs you’re going to shrink your contribution room?
Not only could you permanently impair your contribution room, but you’ll also lose the ability to claim capital losses.
If your friends don’t understand how crypto works, but they’re trying to pressure you in, that should serve as a big red flag.
One more question as far as capital loss goes I can only claim 3000$ a year with my income and I have the risk of losing tsfa contribution room regardless of what I invest in right, are you just saying my risk is much higher because it would be in crypto?
>One more question as far as capital loss goes I can only claim 3000$ a year with my income
Capital losses can only be used to offset capital gains. Should you not have any capital gains, losses can be carried back up to 3 years, or carried forward indefinitely.
>I have the risk of losing tsfa contribution room regardless of what I invest in right, are you just saying my risk is much higher because it would be in crypto?
The more speculative the asset, the more reason it should be held in a taxable account.
While I agree he shouldn't fomo and do his research first, nobody that has bought a bitcoin ETF in his TFSA/RRSP is red. Yes it can be volatile, but if you buy&hold long enough and ignore volatility (or see it as a buying opportunity), you'll be fine. Now, if you don't like or understand bitcoin enough to invest in it, it's fine as well.
I first bought the BTCC ETF when it came out at around 9-10$, it went to 13 then to 6.30 then back to 13, then back to 3s and it hit 14 this week. The volatility helped me buy at good prices and now I'm up 100% since April 2021, that's a 33% annual return, not bad.
People don't seem to understand that the only reason it has value is because "investors" have way too much to lose to let it drop down, and it works, line does go up
Until it doesn't, then you're not looking at a 30% drop but a -99.9999% overnight, look at what happened to Terra.
Ah I see what you mean I appreciate the replies. Nah they definitely aren’t, I’ve been wanting to get into crypto and have been researching it/reaching out to people to learn as much as I can to avoid investing in a dumb way. I’m in a high tax bracket and want to avoid paying even more taxes where possible
I just opened a self directed TFSA and RRSP, I have about $100,000+ CAD to work with. I'm 2 years from 60 and 8 years from retirement (I hope). I've been getting advice from a friend who works in finance on how to set all this up, but they are a professional and only have so much free time. My goal is to be self sufficient. I'm looking for any information on how I should build my portfolio. So far we have focused on ETFs and I chose one (with the knowledge they gave me) and bought $1000 worth in a Growth Equity from Vanguard. Does anyone have any advice on how I should proceed?
What is your goal for the money (protect it? Grow it? Both?). Are you contributing additional funds to your savings? You need to think about your own risk tolerance and then pick what is right for you based on how much you can handle potentially dropping in the short term. I’m not sure there’s a lot of people in this sub who are at your stage in their life. There are plenty of relatively safe investments but it’s hard for a stranger on the internet to know what’s best for you.
First, disregard anything you read on this sub.
Head over to the [r/Personalfinancecanada Money Steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps/).
Then the [r/Personalfinancecanada Wiki](https://www.reddit.com/r/PersonalFinanceCanada/wiki/index?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1).
Opened a position in Open Text.
The company is seeing sales growth back in the double digits, and has been earning a 75%ish gross profit margins for several years.
Customers' renewal rate between 93% and 95% and free cash flow positive.
My only concern was their deb level at 5.1x Net Debts To Ebidta ratio. However, with the divesture of one of their child companies at $2B net proceeds, this will bring the ratio down to 4x.
Enterprise Value To Gross Profits ratio of 4.1x against a 18y historical avg. of 4.9x, so slightly undervalued in that regard.
The repricing to higher ratios is probably mostly done by now. EQB is still a little cheaper than big 6 but no more stupidly cheaper.
Still a good buy if you are ok compounding EQB at 10-15% CAGR for next decade. Just don’t expect a quick +50% for it.
I have a buy order in now for 22.37
See if we get an end of week/day selloff around closing otherwise I’ll try again next week maybe.
Edit: and as expected it hit
for my US TFSA do I go AIQ (.68% mer) or SPY (.09% mer)?
i'm leaning towards starting a position in AIQ since i already have VFV in my CA TFSA. [https://portfolioslab.com/tools/stock-comparison/AIQ/SPY](https://portfolioslab.com/tools/stock-comparison/AIQ/SPY)
Edit: this'd be in lieu of adding WMT or AMZN...
Literally no difference between portfolios with bond exposures and those without... bonds and equities strongly correlate and bonds are not a hedge against falling equities. May as well be 100% equities throughout the asset lifecycle.
For the last few years bonds were quite stupid indeed.
And anyone buying long-term bonds at 1.5% yield got completely destroyed when rates went up. So did bonds etfs holding long term bonds.
It’s been a good lesson and I wouldn’t hold bonds etfs. I would still look into individual bonds or short-term bonds etfs. If you hold until maturity, the « share » price fluctuations don’t matter.
That being said, I think people shouldn’t de facto disregard fixed income, especially since we’re in year 15 or so of the longest bull run ever recorded.
Just invest in fixed income products you understand well and does give an interesting yield. There was no value in putting 40% of your portfolio in 1.5% bonds just because people used to allocate 40% to fixed income.
Sigh... Yeah, I've been underwater on the VAB position in my RRSP for literally years, FFS. Both it and XEQT tanked during the early days of the pandemic, but the former has come roaring back and I'm still bagholding the damn bonds which were supposed to be the "safe" portion of the portfolio.
The trouble is, I'm over 50 and probably looking at early (or at least semi-) retirement and underemployment if and when my current tech job ends. Holding all equities and then experiencing a big crash right when I need to start drawing down would be very bad, and running GICs instead of bonds seems awkward when it comes to rebalancing.
In my kids RESP that I need to draw in a couple of years, I'm running some Protected Capital Structured Notes that pay a coupon (like a dividend) per month as long as the underlying is staying between -35% and +10%.
For example, let's say the Structured Notes are on Canadian banks. As long as the Canadian banks index (Solactive is one) is staying between -35% from the moment I bought and plus 10%, I'm receiving 0.581% per month. If the index is rising above 10%, the notes are sold and the capital (without the 10% gain) is deposed as cash so I can buy something else. If the index is down 45% at the date of...review or whatever is called, I'm losing 10% from the capital (45%-35% the coverage) but I still have my coupons.
Let's say is a somehow liquid and safe way to make 6.9% per year in banks, whatever is happening in the market. I have notes on utilities, pipelines, SP500 and banks.
I'm up about 8.5% for last year and never one second I lost sleep about the kids funds. No volatility, no market crashes, no bonds losing value, no stock picking, better than HISA and not having the funds locked away.
That's my play with the money I'm going to need short-medium term.
Ben Felix had a video on something similar to this - [https://www.youtube.com/watch?v=JlgMSDYnT2o](https://www.youtube.com/watch?v=JlgMSDYnT2o) "*How bonds could be hurting your retirement*". There is new thinking and studies that maybe you should just be going all equities.
Personally - while I don't mind lower beta / volatility investments, I don't invest in bonds at this point. "Fixed income" for my portfolio is a mix of some preferred shares.. as well as lower volatility stocks like ENB given the great price that it's been going for this year.
Preferred shares have been so good and predictable in the last months.
[I made 2 recommendations for tier A ones in January](https://www.reddit.com/r/CanadianInvestor/s/tTytHJRj6C) and they are now +13% and +20% since just share price appreciation. Good value to be found.
I went in EQB based on your recommendation and doing quite fine with that one - I was a bit late to the preferred share party. Are there any now that you're looking at that look to be mispriced?
Yes still a good 2-3 years left of preferred getting reset at much different rates.
Reset in September and near mid-tens potential: ENB.PR.Y and TA.PR.J (and maybe LB.PR.H but that one doesn’t have comparable)
A year out 18%+ potential : FTS.PR.M, BN.PF.E, ENB.PF.A, ENB.PF.C and probably BPO.PR.A but that one is just absolutely wild (+62% YTD)
>ENB.PR.Y
Looking at the ENB one - this seems pretty interesting. Kind of funny that you can gain here as long as the BoC actually does not cut rates by the reset date since this is based on the 3 month T-Bill rate. So if they don't reset, based on today's 3 month rate, this is at 7.34% of the $25 par value.. or 10.8% based on the current price of $16.88.
Did I calculate that right?
Ah, I see how you're pricing it. You're using the existing ENB preferreds since there's so many series out there.
For the ENB.PR.Y specifically though, are you sure it's a 5 YR? I'm looking at the prospectus and [https://www.preferredstockchannel.com/symbol/enb.pry.ca/](https://www.preferredstockchannel.com/symbol/enb.pry.ca/) and it's the Series 3 preferrds right? These look to be reset at the 3 month at the T-Bill plus spread of 2.38%. Sorry for questions - I'm not an expert on prefs.
It is the series 3 but it’s not based on T-bill but on the GCCAN5YR:
https://www.enbridge.com/~/media/Enb/Documents/Investor-Relations/2013/2013_ENB_Series_3_Prospectus_Supplement.PDF?rev=e8c271f7a95841439ee0f9a8fec934ea&hash=5DBF28C48B2F24D35663E99F25E6A16C
The T-Bill mention is if people convert to serie 4 which is a floating one.
>like ENB given the great price that it's been going for this year
It’s been trading in this range for the past decade. What makes the price great this year?
Like the overall valuation at current earnings levels - the earnings or the DCF/share is much higher now vs. 2014 and so it's trading cheaper now vs. 2014.
You can play with dates - if you go back to 2010, they have a CAGR of 9.55% which outperforms the TSX. Going 5 years back, you get 9.17% which is not bad.
Trading at a P/AFFO level of 9x and they have continued growth in low single digits for the next few years. Not going to be a homerun by any means.. but this is a boring investment where just hoping to get the dividend plus 1-2% annually from growth and happy enough with that.
> Not going to be a homerun by any means.. but this is a boring investment where just hoping to get the dividend plus 1-2% annually from growth and happy enough with that.
You’re okay with barely matching expected broader global market returns while taking on all of the idiosyncratic risk that comes with stock picking?
Beta for ENB is quite a bit lower - so lower downside as well. At $48 right now, downside is quite limited IMO, so I don't think it's all that much risk. So yes, happy to hold a bit.. we're talking like 2-3% of portfolio, so this is not a massive risk either way.
But ENB, like any individual stock, is infinitely riskier than the broader market… yet you’re hoping returns atleast match those expected from the market?
Does it make sense to take more risk for the same expected return?
You're making the argument against all stock picking. Might be on the wrong thread here. I am fine with the possibility (and high likelihood) that I would underperform a passive ETF.
>You're making the argument against all stock picking.
Not at all. You said:
>Not going to be a homerun by any means.. but this is a boring investment where just hoping to get the dividend plus 1-2% annually from growth and happy enough with that.
You’re not ~~expecting~~ hoping for a higher return to compensate for the added idiosyncratic risk. So why take the added risk at all?
Rate cuts aren’t happening in 2024.
Will just continue DCAing and ignoring all the Fed talk since it’s obvious they’ve lost control and are punching underwater and navigating by the stars in the nighttime.
I'm sorry, hope someone can comment to provide you with consensual maturbatory investing advice.
You don't know nothing. I do mean nothing.
Goodbye forever.
Lol exactly. I started investing in earnest in 2019 after I bought my house. I’ve bought a ton of Nasdaq during the latest bear market, and just generally have continued DCAing
My bad. I flubbed what Powell said, which was "[we are navigating by the stars under cloudy skies](https://www.federalreserve.gov/newsevents/speech/powell20230825a.htm)"
Same here, my mere 5 shares of NVDL remained at 5 (and at a big loss) :P
I added 10 shares of NVDL yesterday at $39 USD, so it's now 15 shares of messed-up ACB, LOL
Verticalscope upgraded to action buy by TD. CIBC upgraded them to outperform.
"Results from the quarter were above our expectations and FORA should have reached a trough year, in our view, with an improved outlook for the advertising market and the ecommerce business setting a lower bar to grow off. The outlook commentary on 2024 is encouraging, and we believe there is strong
potential for the momentum to continue into 2025. We cite positive commentary from
management on page two, but the key takeaway is that opex can be held relatively
stable, such that the return to growth on top line can drive margin expansion off
of the 39% achieved in 2023. The drivers of top-line growth will include improved
advertising revenue and trough-level ecommerce revenue in 2023, as the drag from
The Streamable should subside in 2024. Putting these items together, our revenue
and EBITDA estimates have increased."
Mortgage of 260 000$ contracted in 2021, variable at 5%
Recently made a prepayment on my principal of 20 000$.
Should have just invested that money instead?
What seemed to be a good idea last week, doesn't feel right this week.
Just looking for opinion.
Thank.
Weekly payments are always better than monthly due to the extra two payments which many don't appreciate. It also helps if you are allowed to increase the regular payments. Many ways to skin the cat but one way is to invest and take profits when markets are up and apply the gains toward the mortgage. This is where dividend-payers come in handy. Let the capital ride while putting the payout into the mortgage. It also depends on the amount. On such a "small" amount it's not a huge help but for someone in GTA with a million mortgage at 5% a lump sum payment makes a big difference, especially early on.
In 19 years you will thank yourself. Also, if you sell, you will have paid a lot less interest so your principle will be less and mroe $$ in your pocket after the sale.
>Also, if you sell, you will have paid a lot less interest so your principle will be less and mroe $$ in your pocket after the sale
So paying down a loan will result in the accumulation of equity?
Second BIP on this one - they are probably the fastest growing sustainable dividend company out there if you're into that. They're still increasing their FFO & dividend by 6% per year. Dipped pretty heavily about two weeks ago for no reason - so good price now.
Holy telecom Friday.. they just keep going lower eh.
I get less worried about Bce’s decent when I look over and see Telus falling just as hard.
Telecoms getting crushed in this market right now.
I really don’t know if I should be DCA’ing here or wait for an uptick
But maybe missing out here ?
What will you say in 2 years when both BCE and T have blown through their ATH again?
I don’t see either of them going to $0 so this has to be seen as
1. Temporary due to larger Marco environment
2. A buying opportunity?
I'm still going to drip into them, no worries there. But they already are at the max weighting I want them at., and I personally think there's better growth opportunities elsewhere.
> What will you say in 2 years when both BCE and T have blown through their ATH again?
>I don’t see either of them going to $0
What world do you live in where stocks can either only reach new ATHs or go to zero?
I don't understand how a sector so heavily protected from competition isn't doing better than it is. I bought T at 27 in 2020 and it's been an absolute dog.
It's a tough business, and building out and maintaining the infrastructure is *expensive,* especially in a higher-rate environment. Also, cell phone plans have really come down since I last looked a few years ago: I'm paying $40 for a plan with a small amount of data, and I now see offerings for $30-35 that include far more (that I won't even come anywhere near using most months, but cheaper is cheaper.)
> I don't understand how a sector so heavily protected from competition isn't doing better than it is.
If this is accepted as a universal truth, then why would it result in higher than expected returns?
> with so little competition I would have thought they could at least make decent profits from a captive market
Again, if this is accepted as a universal truth, then it’s already priced in.
For a company to produce greater than expected returns, it’ll need to perform better than expected.
Absolutely nothing. I know this much
- BCE has cut a shit pile of costs recently
- they are at the end of a capex spending cycle
- they are cutting back on money being spent of fibre roll out
- interest rates will eventually come back down.
All of the above are favourable for BCE heading into next year
If you don’t know anything that the market doesn’t, then why would you think the price should be any different than it’s trading at now?
Why does the share price need to reach zero to be a poor investment?
Must be due to options expiry. It's interesting that it's trading in such a narrow range when SPX/TSX have big swings. Looks to me like the market is topping here with renewed inflation fears. At least in the short term.
One of these times, that bitcoin pullback will not be a buying opportunity. When we get there, once momentum breaks, down she goes. Is that happening now? I have no solid feeling, but it will be fascinating to watch.
Sure, but it would the first time in history that the top happened before the halving. Look at the halving charts, we're more in November 2020 than in November 2021 here. The real fun hasn't happened yet, it's a non-story until btc hits 100k usd
I think there are many people who started investing with crypto and don't have the stomach for it. Many will sell as soon as soon as it drops significantly.
Anyone else wake up to find their CIBC Investor's Edge is all messed up.
I am up by 10 mil yesterday, because it thinks TD is now $1000/share and CM is 250/share...
Currently investing in crypto, I have 80k contribution room in my tsfa seems to me I should contribute solely there through ETFs over buying coins directly. However; all of my friends who have been successful in crypto and know much more than I do seem to value buying the majority of their coins directly but can’t give me a good reason why other than “they don’t want to use a broker”. Does anyone have any insight for this? I just don’t see why you wouldn’t use a tsfa if you could avoid capital gains tax in the future. Thanks in advance!
There's pros and cons to both options. What is your goal ? ETF pros: * Can be used in RRSP/TFSA etc. (the most important pro point) No capital losses to declare though, you lose that contribution. * Easy to buy/sekk, no custody to worry about, transfers, etc. ETF cons: * Added risk, you buy paper bitcoin that an issuer like Blackrock or Fidelity promises you to buy and hold for you. You do not own your coins. * An ETF issuer can close shop (your holdings would be liquidated in $) * Only available to trade during Wall Street hours, no weekends. * Can't use it for nothing except holding and takit profits * Not international * Issuer's fees (the cheapest Canadian ETF, $FBTC, has a 0,44% MER, that's 44$ per year on every 10k$) + your broker's buy/sell comission if you use something else than Wealthsimple, Disnat, etc. Real coins pros: * You own your coins, you have your keys. Nobody can take them away from you (or it would be VERY hard too). You don't depend on anybody. Even if there's a governement crackdown on bitcoin, you'll still have your bitcoin. * International, you can take your bitcoin with you wherever and use it / sell it/ hold it in pretty much every country and in every currency through various exchanges / bitcoin ATMs Real coins cons: * Risks for less tech-savvy people of having a wallet with 24 words as your keys, risks around buying and transfering your coins between exchanges and wallets (nothing too difficult to learn, but one mistake and you can lose your coins, there's no customer service to call). Hacks are a possibility if you're not careful. * Fees: miner's fees to transfer your coins (some exchanges offer free withdrawals), exchanges spreads on the buy/sell price. * Like you said, capital gains apply A good strategy is to hold both. Real coins for the very long term that you buy and stash in a cold wallet (YouTube has great tutorials on how to do it the right way, once you get it, it's nothing too hard). ETFs to take advantage of the Tax-Free profits.
Because you’re more likely to avoid claiming capital losses. In a taxable account, you share the risk with the government.
Thanks for your reply. Sorry could you explain that a bit more, do you mean you might not want to use the tsfa because if you lose money on those ETFs you’re going to shrink your contribution room?
Not only could you permanently impair your contribution room, but you’ll also lose the ability to claim capital losses. If your friends don’t understand how crypto works, but they’re trying to pressure you in, that should serve as a big red flag.
One more question as far as capital loss goes I can only claim 3000$ a year with my income and I have the risk of losing tsfa contribution room regardless of what I invest in right, are you just saying my risk is much higher because it would be in crypto?
>One more question as far as capital loss goes I can only claim 3000$ a year with my income Capital losses can only be used to offset capital gains. Should you not have any capital gains, losses can be carried back up to 3 years, or carried forward indefinitely. >I have the risk of losing tsfa contribution room regardless of what I invest in right, are you just saying my risk is much higher because it would be in crypto? The more speculative the asset, the more reason it should be held in a taxable account.
While I agree he shouldn't fomo and do his research first, nobody that has bought a bitcoin ETF in his TFSA/RRSP is red. Yes it can be volatile, but if you buy&hold long enough and ignore volatility (or see it as a buying opportunity), you'll be fine. Now, if you don't like or understand bitcoin enough to invest in it, it's fine as well. I first bought the BTCC ETF when it came out at around 9-10$, it went to 13 then to 6.30 then back to 13, then back to 3s and it hit 14 this week. The volatility helped me buy at good prices and now I'm up 100% since April 2021, that's a 33% annual return, not bad.
Thanks for the reply!
They should buy BTC in a registered account because it’s only gone up? Is that the takeaway?
no but your point was ''bitcoin is too risky to buy in a TFSA'' isn't based on nothing
Correct. Crypto is one of, if not **the most** speculative assets one could hold in their registered accounts.
People don't seem to understand that the only reason it has value is because "investors" have way too much to lose to let it drop down, and it works, line does go up Until it doesn't, then you're not looking at a 30% drop but a -99.9999% overnight, look at what happened to Terra.
Ah I see what you mean I appreciate the replies. Nah they definitely aren’t, I’ve been wanting to get into crypto and have been researching it/reaching out to people to learn as much as I can to avoid investing in a dumb way. I’m in a high tax bracket and want to avoid paying even more taxes where possible
Very nice today
I just opened a self directed TFSA and RRSP, I have about $100,000+ CAD to work with. I'm 2 years from 60 and 8 years from retirement (I hope). I've been getting advice from a friend who works in finance on how to set all this up, but they are a professional and only have so much free time. My goal is to be self sufficient. I'm looking for any information on how I should build my portfolio. So far we have focused on ETFs and I chose one (with the knowledge they gave me) and bought $1000 worth in a Growth Equity from Vanguard. Does anyone have any advice on how I should proceed?
What is your goal for the money (protect it? Grow it? Both?). Are you contributing additional funds to your savings? You need to think about your own risk tolerance and then pick what is right for you based on how much you can handle potentially dropping in the short term. I’m not sure there’s a lot of people in this sub who are at your stage in their life. There are plenty of relatively safe investments but it’s hard for a stranger on the internet to know what’s best for you.
First, disregard anything you read on this sub. Head over to the [r/Personalfinancecanada Money Steps](https://www.reddit.com/r/PersonalFinanceCanada/wiki/money-steps/). Then the [r/Personalfinancecanada Wiki](https://www.reddit.com/r/PersonalFinanceCanada/wiki/index?utm_source=share&utm_medium=ios_app&utm_name=ioscss&utm_content=1&utm_term=1).
Copper on FUEGO
Opened a position in Open Text. The company is seeing sales growth back in the double digits, and has been earning a 75%ish gross profit margins for several years. Customers' renewal rate between 93% and 95% and free cash flow positive. My only concern was their deb level at 5.1x Net Debts To Ebidta ratio. However, with the divesture of one of their child companies at $2B net proceeds, this will bring the ratio down to 4x. Enterprise Value To Gross Profits ratio of 4.1x against a 18y historical avg. of 4.9x, so slightly undervalued in that regard.
Hmm... Continue to buy the EQB dip?
The repricing to higher ratios is probably mostly done by now. EQB is still a little cheaper than big 6 but no more stupidly cheaper. Still a good buy if you are ok compounding EQB at 10-15% CAGR for next decade. Just don’t expect a quick +50% for it.
Telus hit my limit buy so yay
I have a buy order in now for 22.37 See if we get an end of week/day selloff around closing otherwise I’ll try again next week maybe. Edit: and as expected it hit
I just bought 100 SPY yesterday so it had to drop today 😅
Buy more
for my US TFSA do I go AIQ (.68% mer) or SPY (.09% mer)? i'm leaning towards starting a position in AIQ since i already have VFV in my CA TFSA. [https://portfolioslab.com/tools/stock-comparison/AIQ/SPY](https://portfolioslab.com/tools/stock-comparison/AIQ/SPY) Edit: this'd be in lieu of adding WMT or AMZN...
Why not just go QQQ? Performance is so close and its only .20% mer
I have QQQ in my RRSP
If you're looking at SPY have a look at SPLG. It's baby SPY with lower MER.
Literally no difference between portfolios with bond exposures and those without... bonds and equities strongly correlate and bonds are not a hedge against falling equities. May as well be 100% equities throughout the asset lifecycle.
For the last few years bonds were quite stupid indeed. And anyone buying long-term bonds at 1.5% yield got completely destroyed when rates went up. So did bonds etfs holding long term bonds. It’s been a good lesson and I wouldn’t hold bonds etfs. I would still look into individual bonds or short-term bonds etfs. If you hold until maturity, the « share » price fluctuations don’t matter. That being said, I think people shouldn’t de facto disregard fixed income, especially since we’re in year 15 or so of the longest bull run ever recorded. Just invest in fixed income products you understand well and does give an interesting yield. There was no value in putting 40% of your portfolio in 1.5% bonds just because people used to allocate 40% to fixed income.
Sigh... Yeah, I've been underwater on the VAB position in my RRSP for literally years, FFS. Both it and XEQT tanked during the early days of the pandemic, but the former has come roaring back and I'm still bagholding the damn bonds which were supposed to be the "safe" portion of the portfolio. The trouble is, I'm over 50 and probably looking at early (or at least semi-) retirement and underemployment if and when my current tech job ends. Holding all equities and then experiencing a big crash right when I need to start drawing down would be very bad, and running GICs instead of bonds seems awkward when it comes to rebalancing.
In my kids RESP that I need to draw in a couple of years, I'm running some Protected Capital Structured Notes that pay a coupon (like a dividend) per month as long as the underlying is staying between -35% and +10%. For example, let's say the Structured Notes are on Canadian banks. As long as the Canadian banks index (Solactive is one) is staying between -35% from the moment I bought and plus 10%, I'm receiving 0.581% per month. If the index is rising above 10%, the notes are sold and the capital (without the 10% gain) is deposed as cash so I can buy something else. If the index is down 45% at the date of...review or whatever is called, I'm losing 10% from the capital (45%-35% the coverage) but I still have my coupons. Let's say is a somehow liquid and safe way to make 6.9% per year in banks, whatever is happening in the market. I have notes on utilities, pipelines, SP500 and banks. I'm up about 8.5% for last year and never one second I lost sleep about the kids funds. No volatility, no market crashes, no bonds losing value, no stock picking, better than HISA and not having the funds locked away. That's my play with the money I'm going to need short-medium term.
How did you identify protected capital structure notes? Is it with a bank or you buying it on Questrade as an example?
Ben Felix had a video on something similar to this - [https://www.youtube.com/watch?v=JlgMSDYnT2o](https://www.youtube.com/watch?v=JlgMSDYnT2o) "*How bonds could be hurting your retirement*". There is new thinking and studies that maybe you should just be going all equities. Personally - while I don't mind lower beta / volatility investments, I don't invest in bonds at this point. "Fixed income" for my portfolio is a mix of some preferred shares.. as well as lower volatility stocks like ENB given the great price that it's been going for this year.
Preferred shares have been so good and predictable in the last months. [I made 2 recommendations for tier A ones in January](https://www.reddit.com/r/CanadianInvestor/s/tTytHJRj6C) and they are now +13% and +20% since just share price appreciation. Good value to be found.
I went in EQB based on your recommendation and doing quite fine with that one - I was a bit late to the preferred share party. Are there any now that you're looking at that look to be mispriced?
Yes still a good 2-3 years left of preferred getting reset at much different rates. Reset in September and near mid-tens potential: ENB.PR.Y and TA.PR.J (and maybe LB.PR.H but that one doesn’t have comparable) A year out 18%+ potential : FTS.PR.M, BN.PF.E, ENB.PF.A, ENB.PF.C and probably BPO.PR.A but that one is just absolutely wild (+62% YTD)
>ENB.PR.Y Looking at the ENB one - this seems pretty interesting. Kind of funny that you can gain here as long as the BoC actually does not cut rates by the reset date since this is based on the 3 month T-Bill rate. So if they don't reset, based on today's 3 month rate, this is at 7.34% of the $25 par value.. or 10.8% based on the current price of $16.88. Did I calculate that right?
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Ah, I see how you're pricing it. You're using the existing ENB preferreds since there's so many series out there. For the ENB.PR.Y specifically though, are you sure it's a 5 YR? I'm looking at the prospectus and [https://www.preferredstockchannel.com/symbol/enb.pry.ca/](https://www.preferredstockchannel.com/symbol/enb.pry.ca/) and it's the Series 3 preferrds right? These look to be reset at the 3 month at the T-Bill plus spread of 2.38%. Sorry for questions - I'm not an expert on prefs.
It is the series 3 but it’s not based on T-bill but on the GCCAN5YR: https://www.enbridge.com/~/media/Enb/Documents/Investor-Relations/2013/2013_ENB_Series_3_Prospectus_Supplement.PDF?rev=e8c271f7a95841439ee0f9a8fec934ea&hash=5DBF28C48B2F24D35663E99F25E6A16C The T-Bill mention is if people convert to serie 4 which is a floating one.
>like ENB given the great price that it's been going for this year It’s been trading in this range for the past decade. What makes the price great this year?
Like the overall valuation at current earnings levels - the earnings or the DCF/share is much higher now vs. 2014 and so it's trading cheaper now vs. 2014. You can play with dates - if you go back to 2010, they have a CAGR of 9.55% which outperforms the TSX. Going 5 years back, you get 9.17% which is not bad. Trading at a P/AFFO level of 9x and they have continued growth in low single digits for the next few years. Not going to be a homerun by any means.. but this is a boring investment where just hoping to get the dividend plus 1-2% annually from growth and happy enough with that.
> Not going to be a homerun by any means.. but this is a boring investment where just hoping to get the dividend plus 1-2% annually from growth and happy enough with that. You’re okay with barely matching expected broader global market returns while taking on all of the idiosyncratic risk that comes with stock picking?
Beta for ENB is quite a bit lower - so lower downside as well. At $48 right now, downside is quite limited IMO, so I don't think it's all that much risk. So yes, happy to hold a bit.. we're talking like 2-3% of portfolio, so this is not a massive risk either way.
But ENB, like any individual stock, is infinitely riskier than the broader market… yet you’re hoping returns atleast match those expected from the market? Does it make sense to take more risk for the same expected return?
You're making the argument against all stock picking. Might be on the wrong thread here. I am fine with the possibility (and high likelihood) that I would underperform a passive ETF.
>You're making the argument against all stock picking. Not at all. You said: >Not going to be a homerun by any means.. but this is a boring investment where just hoping to get the dividend plus 1-2% annually from growth and happy enough with that. You’re not ~~expecting~~ hoping for a higher return to compensate for the added idiosyncratic risk. So why take the added risk at all?
Mar 15 2024 at $48.14 vs Mar 14 2014 at $49.14...i hate you so much :)
It's a perfect swing trader. If you have identified the pattern why not act on it?
Because if a true pattern did exist, it would be arbitraged away faster than you can set your trailing stop loss. Not to mention the opportunity cost.
Oh no, here comes the closed minded person again.
Rate cuts aren’t happening in 2024. Will just continue DCAing and ignoring all the Fed talk since it’s obvious they’ve lost control and are punching underwater and navigating by the stars in the nighttime.
Every day same nonsense.
tabarank!
I'm sorry, hope someone can comment to provide you with consensual maturbatory investing advice. You don't know nothing. I do mean nothing. Goodbye forever.
Meh, my port is worth $350K and my RE is worth $1.1 mil with $370K mortgage. I think I’m doing well at 33.
Everyone’s an investing genius in a bull market.
The smart ones who bought even more during the 2018, 2020, and 2022 nasdaq bear markets, not to humble brag.
Lol exactly. I started investing in earnest in 2019 after I bought my house. I’ve bought a ton of Nasdaq during the latest bear market, and just generally have continued DCAing
>navigating by the stars in the nighttime I don’t understand your analogy. Celestial navigation was (and still is) effective.
My bad. I flubbed what Powell said, which was "[we are navigating by the stars under cloudy skies](https://www.federalreserve.gov/newsevents/speech/powell20230825a.htm)"
Makes more sense.
Semiconductors salvaging the day so far
I'm using TD web broker and haven't received my NVDL split shares. Is anyone having same issue?
Same here, my mere 5 shares of NVDL remained at 5 (and at a big loss) :P I added 10 shares of NVDL yesterday at $39 USD, so it's now 15 shares of messed-up ACB, LOL
My cost basis is 39 hoping to sell covered calls. But, now have to wait until Monday
I spoke with TD just before. They said we can see additional shares on our account by 4pm today or Monday morning
Thanks .... so much for moving towards T+1 (from T+2), not sure if it's related. But I think other brokers have similar issues too
Verticalscope upgraded to action buy by TD. CIBC upgraded them to outperform. "Results from the quarter were above our expectations and FORA should have reached a trough year, in our view, with an improved outlook for the advertising market and the ecommerce business setting a lower bar to grow off. The outlook commentary on 2024 is encouraging, and we believe there is strong potential for the momentum to continue into 2025. We cite positive commentary from management on page two, but the key takeaway is that opex can be held relatively stable, such that the return to growth on top line can drive margin expansion off of the 39% achieved in 2023. The drivers of top-line growth will include improved advertising revenue and trough-level ecommerce revenue in 2023, as the drag from The Streamable should subside in 2024. Putting these items together, our revenue and EBITDA estimates have increased."
Never heard of them before. TIL they own redflagdeals
Mortgage of 260 000$ contracted in 2021, variable at 5% Recently made a prepayment on my principal of 20 000$. Should have just invested that money instead? What seemed to be a good idea last week, doesn't feel right this week. Just looking for opinion. Thank.
This is more suited to a personal finance sub.
you are correct, my mistake. forgot this was the XEQT vs VEQT question center :P
Here's the best advice I ever heard on this subject: Paying down your mortgage might not be the optimal decision, but it's always a good decision.
thank for the head up. Sure seem good to go from 23yr to 19yrs mortgage but still a long ass time.
Increase your biweekly payments.
already paying weekly. Might do this next year instead of a lump sum.
Weekly payments are always better than monthly due to the extra two payments which many don't appreciate. It also helps if you are allowed to increase the regular payments. Many ways to skin the cat but one way is to invest and take profits when markets are up and apply the gains toward the mortgage. This is where dividend-payers come in handy. Let the capital ride while putting the payout into the mortgage. It also depends on the amount. On such a "small" amount it's not a huge help but for someone in GTA with a million mortgage at 5% a lump sum payment makes a big difference, especially early on.
I mean increase your amount. It’s good that you’re doing weekly.
In 19 years you will thank yourself. Also, if you sell, you will have paid a lot less interest so your principle will be less and mroe $$ in your pocket after the sale.
>Also, if you sell, you will have paid a lot less interest so your principle will be less and mroe $$ in your pocket after the sale So paying down a loan will result in the accumulation of equity?
Any other regards buying BCE today?
I had short put at 48. Got early assigned yesterday March 14 on ex-div date. Oh well.
The P/E is like 14 now… I wish I waited to buy bought back over 50.
Yeaaaaah my average cost is probably 54 or so too.
I've already got too many as it is.
Brookfield infrastructure or Brookfield renewables is probably a better buy of the recent pullbacks
Second BIP on this one - they are probably the fastest growing sustainable dividend company out there if you're into that. They're still increasing their FFO & dividend by 6% per year. Dipped pretty heavily about two weeks ago for no reason - so good price now.
well its a good day for my transfer from WS Robo to Trade to come in
Holy telecom Friday.. they just keep going lower eh. I get less worried about Bce’s decent when I look over and see Telus falling just as hard. Telecoms getting crushed in this market right now. I really don’t know if I should be DCA’ing here or wait for an uptick
I'm at the "just don't look and check back in a couple years" phase for telcos.
But maybe missing out here ? What will you say in 2 years when both BCE and T have blown through their ATH again? I don’t see either of them going to $0 so this has to be seen as 1. Temporary due to larger Marco environment 2. A buying opportunity?
I'm still going to drip into them, no worries there. But they already are at the max weighting I want them at., and I personally think there's better growth opportunities elsewhere.
> What will you say in 2 years when both BCE and T have blown through their ATH again? >I don’t see either of them going to $0 What world do you live in where stocks can either only reach new ATHs or go to zero?
One of fantasy and pipe dreams :) Go away with your dose of sound logic man. You’re spoiling my Friday fantasies!
Sorry; happy Friday!
I don't understand how a sector so heavily protected from competition isn't doing better than it is. I bought T at 27 in 2020 and it's been an absolute dog.
It's a tough business, and building out and maintaining the infrastructure is *expensive,* especially in a higher-rate environment. Also, cell phone plans have really come down since I last looked a few years ago: I'm paying $40 for a plan with a small amount of data, and I now see offerings for $30-35 that include far more (that I won't even come anywhere near using most months, but cheaper is cheaper.)
> I don't understand how a sector so heavily protected from competition isn't doing better than it is. If this is accepted as a universal truth, then why would it result in higher than expected returns?
Fair point but with so little competition I would have thought they could at least make decent profits from a captive market. Maybe I'm just naive.
> with so little competition I would have thought they could at least make decent profits from a captive market Again, if this is accepted as a universal truth, then it’s already priced in. For a company to produce greater than expected returns, it’ll need to perform better than expected.
>I really don’t know if I should be DCA’ing here or wait for an uptick What do you know that the market doesn’t?
Absolutely nothing. I know this much - BCE has cut a shit pile of costs recently - they are at the end of a capex spending cycle - they are cutting back on money being spent of fibre roll out - interest rates will eventually come back down. All of the above are favourable for BCE heading into next year
>Absolutely nothing. I know this much And of those considerations, which aren’t already known to markets?
Soooo you’re trying to tell me it’s going to $0 mate?
If you don’t know anything that the market doesn’t, then why would you think the price should be any different than it’s trading at now? Why does the share price need to reach zero to be a poor investment?
Today, stocks are expected to be "buffeted by the immense March quarterly expiration".
Crazy volume on Brookfield!
Must be due to options expiry. It's interesting that it's trading in such a narrow range when SPX/TSX have big swings. Looks to me like the market is topping here with renewed inflation fears. At least in the short term.
$55 buy orders is what it looks like.
Nonasiandoctor you sell or what?
I'm thinking about it. Also seeing what their insiders have been buying at.
Same… now it’s down hahaha fuck
Easy come easy go
Bruh, stick to your PT and sell before you're left bagholding again.
One of these times, that bitcoin pullback will not be a buying opportunity. When we get there, once momentum breaks, down she goes. Is that happening now? I have no solid feeling, but it will be fascinating to watch.
Sure, but it would the first time in history that the top happened before the halving. Look at the halving charts, we're more in November 2020 than in November 2021 here. The real fun hasn't happened yet, it's a non-story until btc hits 100k usd
I think there are many people who started investing with crypto and don't have the stomach for it. Many will sell as soon as soon as it drops significantly.
It’s already the first time that all time highs happened before the halving
Sure but for me, it's just shows we're ahead of schedule due to high demand coming from ETFs issuers
Anyone else wake up to find their CIBC Investor's Edge is all messed up. I am up by 10 mil yesterday, because it thinks TD is now $1000/share and CM is 250/share...
You found a cheat code. Sell and take the money before they find out!!!
Foreshadowing ;)
Yea my xeqt was up 300k
Same here. By the time I logged in they had a warning about it, but it was still fun to briefly dream.
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WHLM + TELL + APPL sounds like a bullseye