When is it a Good Time to Invest?

Just a short post on my random thoughts on this subject. I didn't have much money to save, invest and buy a house until I was well into my fourties. A failed first marriage, child support payments and constant job movement took care of most of my disposable income.

I used to joke that in the 80's I lived not paycheque to paycheque but income tax return to income tax return. In those days one could claim child support payments as an expense to offset income gains.

I was pretty much a financial misfit in those days. You can solve a lot of problems with time and money. Just those two things. You have to be patient.

My basic mantra to answer the above question is really quite simple.

Invest when you have the money, sell assets only when you need the money and in the middle do nothing.

It's a crazy environment out there right now as markets are high and stock valuations on some companies are at nosebleed levels.

What to Do?

The questions are many but markets always turn around and move higher like 70% of the time. If you can't stand to see your portfolio lose ground on paper then go buy a GIC from your bank and try and relax.

Turn off BNN and stop sweating the latest crisis happening world wide. Canadian markets were up 30% last year. It's not a big deal when we shed a percent or two like happened on Monday.

1. If you have lots of time to retirement it's never a bad time to invest.
2. Be cautious at all time highs.
3. Never panic sell in a crisis.
4. Buy index ETFs when starting out if you want general market exposure.
5. Don't try and time the market. Hold if you don't need the money.
6. Patience is critical.
7. You are you're own worst enemy when it comes to investment returns.
8. Anything happens and will happen in the short term.
9. Start as early as you can.
10. Stay invested and stick to your plan.
11. Continue to buy when you have the money.

"I buy on the way down and never sell on the way up" - Barry Schwarz

You only lose money if you sell at a loss. Don't lose money.

Of course if you don't know how to manage taxes go see a professional on where to best manage your accounts, TFSAs, RRSPs and open investment accounts and or RESPs.

In Sum

It's always a good time to invest if you have a long runway of time and have the money saved to invest.

The world has always been an uncertain place with one crisis and bubble after another. The tech bubble of the late 90's (I lived it) saw fortunes made and fortunes disappear. Lots of companies that weren't profitable traded at ridiculous multiples with no earnings. Reminds me of a lot of pot companies right now.

That is not investing, it's pure gambling. Do it if you want but know the difference.

I also believe you should become a DIY investor. Learn how to manage and invest your own money. By all means if you don't want to then seek a professional's advice. Just me.

Buy individual stocks only if you know what you're buying. Do your homework and understand the business.

I buy companies that I use, subscribe to or make payments to.

Companies like Costco, Apple, Bell, Bank of Nova Scotia, Canadian Utilities and Enbridge.

  

I shop at Costco, use internet and consume data, use an iphone, use BNS as my bank, pay a utility bill and use natural gas for heating and cooling.

Not everything but a good starting point. This is not a recommendation for you to do the same but only highlighting what I do and where and when I invest.

Related Posts:

My Dividend Portfolio Performance 2019

Why I Just Bought Costco

The 6-Pack Portfolio

Jason Del Vicario and Growth Stocks

One of my favourite guests on BNN is growth stock investor JDV. He just recently made an appearance on the 20th of January. He has not been a guest since September 23 2019.

This is for the sexy part of your portfolio where you need some growth assets for your future. Places like your TFSA. 

Jason has recently de-risked his portfolios as he anticipates a coming recession. He actioned this strategy last year. He claims he will always hold positions in growth companies he likes and is also holding long treasuries through TLT.

I don't buy bonds long or short, then again I'm not a paid portfolio manager getting paid bonuses for performance. As a retail investor I'm only interested in what the pros are picking at the moment and why.

With the Dow futures off almost 400 points now is the time to start planning when to buy some of the stocks you've always wanted to own. With this virus outbreak the excuse has been made that the bull run in stocks is over. Is it? Remember December 2018 when the S&P sold off 11%? It then gained it all back in a month. This could be another one of these buying opportunities. Will you act like a contrarian or become a victim?

Jason's Stocks to Buy

ULTA, GIB.A, LSPD (spec buy), SHOP (spec buy), SQ (spec buy), GC, WFC, (weak buy)

PYPL, TOY, and MSFT.

The only stock I hold from this list is MSFT and I'm looking to add more if markets pullback from this latest virus scare. In the payment space JDV likes and holds Mastercard. I own Visa as it's cheaper on a p/e multiple. I have always liked SQ. My barber uses it when I go to pay. Maybe it's here to stay for small business people. More research on my part is needed. I used to hold TOY but sold it last year. Two years ago it was a $58 stock It now trades at $38.

I hear lots of pros recommend Ulta Cosmetics and Fragrance. More DD on my part is due. There must be something proprietary for all these guests to recommend it. Don Lato also top picked it back in October at $238. It now trades at $273. Great ROE at over 37%. Stock has a $368 high in the last 52 weeks. 

Past Picks

DOL Dollarama - up 29% since he picked them a year ago

KL Kirkland Lake Gold - up 61% still holding

TLT - 20 yr. treasury bonds - up 18% in the last year

I used to own KL and DOL but no longer. I am looking for more juice from the gold space and I think holding a major or mid-tier is for PF managers. I own some juniors but I also think there is a ton of time to hop on the gold train. Stocks are lagging behind the commodity price with no sign that institutions are interested in gold stocks. You aren't going to miss anything with loads of time to load up if you want. However right now gold is catching a bid with recent world events and today will tell us a lot about what fund managers are going to do about it.

Don't Buy

MAXR- Maxar Technologies

GE General Electric

DGC Detour Gold

AMD Advanced Micro Devices (partial sell)

Don't own any and have never owned these stocks. 

Watching

LLL Lululemon
GOOS Canada Goose

I don't like retail stocks. I would rather own a DOL or a ATD.B. People always shop for deals,  cheap food and smokes. These high end stores usually become Coach. Remember them? I also don't like the whole goose down industry. I find it cruel when they pluck live animals for feathers just to put in a jacket. This is just more animal abuse. To each his own but not for me regardless of investment potential.

Top Picks

CSU Constellation Software
PXT Parex Resources
TLT 20 yr U.S. Treasury Bonds

I do own CSU. Jason calls it his forever hold stock. It's a great Canadian success story. It trades at $1395 bucks so it's not cheap on a nominal basis. I'm looking to add on weakness. One day it might get to $1500. Can you imagine owning something priced that high?.

I own other names in the oil patch but I'll look into PXT as it's in Colombia without all the warts we have here in Canada. Sounds like a great diversifier. This is the only oil name Jason owns.

My Growth Stocks

AAPL, AMZN, BRK.B, COST, CSU, FB, GOOGL, MSFT and Visa.

Jason was not asked about NFLX. Not one BNN expert has ever picked NFLX. They are all scared of Disney and the fact cash flow doesn't keep up with spending on content. It is and has always been expensive.

No doubt the streaming wars are in full swing. I gotta tell you though, we have Prime Video and Disney at home and the new content just plain sucks.

After you watch Mandalorian there is nothing else worth watching on Disney. Amazon Prime has nothing for me. Maybe I just get sick of B grade TV series. Every once in awhile a great series like Jack Ryan comes along but it's slow in coming.

I like Netflix. I just do. Whether it's going to be a great investment I don't know. But please don't tell me Disney is the bomb. It's just not.

Most kids own an iphone, check their FB every minute, watch youtube videos, post pictures to instagram and watch Netflix. What am I missing on where I should spend some investment dollars?

I might own NFLX soon. I like to own what others hate or are selling. The kids use it and like it and I'm also a  subscriber.

The kids are telling me to own AAPL, FB, GOOGL and NFLX for now. These are the pipelines of the future. They're all getting cheaper during this crisis

Finally

This was just a short post and my thoughts on what a great growth stock investor like JDV is recommending and holding for his clients. Of course this is not a complete picture of his investment thesis or what he buys for everybody.

I don't watch BNN Bloomberg every day (life is too short) but I do get alerts and when Jason is on I set a reminder. You would be well served to do the same.

Great show and thanks for the tips JDV!

Do you buy Growth Stocks? If so, which ones?

Related Posts:

Growth Stocks Part II

North American Growth Stocks

Oil and The Stock Market

Just a short post on what stocks I bought this week while the market was pulling back. I also sold some losers to raise cash and make these purchases.

Why the Sell Off?

It's all about the oil. Every day and all day. The economy runs on oil. When we have too much inventory oil goes down and the market goes down.

Don't be fooled into thinking this is about the virus in China. That is just a distraction from the macro environment we're in right now. That is, the banks need high oil prices as financial markets need the lubrication that oil provides. The military industrial complex of the U.S. runs on oil and lots of it. An event is coming in the not too distant future to cause oil prices to go back up. OK I don't know if that's true but a false flag might happen under this current tense political environment in the Mid-East.

Remember the assassination and subsequent missile attack? Oil spiked and then oil pulled back. Same as this virus.

On the 22nd of January it was announced that there was a significant 1mil barrel build in oil inventories while the market expected a 1.5mil barrel draw down. We also have over 4mil gallons of gasoline in inventory when a lot less was expected. That's the reason for the market sell off so watch oil price direction and try to invest accordingly. Protect yourself.

Oil and gas prices should really be half of what they are but corporations who run this show won't allow this to happen.

The Market

Stocks are headed higher and I've been buying the dip. Why is that? Well the fed just pumped another $90B into the repurchase market on Tuesday to keep the yield curve stable and alive. All this stimulus when everything and the economy is supposed to be the best in history. Unemployment, low interest rates etc. etc.

If so then why all the money when the fed's balance sheet is at $4T. Ya that's trillions and only going higher with no end in sight.

This is an addiction of the highest order, feeding the habits of this repo market so we don't see a run on the banks like the 1920's.

Lots of this monetary stimulus will find it's way into stocks. 

The worse thing you can do is sell everything and go to cash or bonds in my opinion. They pay peanuts. 1.5% for a ten year Canadian bond. Inflation is at 2%.

You're just falling further and further behind.

Stocks at the moment are where to be. I've been buying incrementally all this week and last.

What I Bought on The Dip 

AAPL, AMZN, MSFT, GOOGL, FB, and Visa.

I raised cash by selling all my remaining pot stocks at a slight loss. (TGOD, WMD). This is a trading account, so nothing is to be held forever like in my retirement account which is flush with dividend growth stocks. This is the account I gamble in. Thursday and Friday were great days to add to stocks as they were all under pressure from the sell off in crude oil.

I also bought BMO's US Bank ETF - ZBK. It's equal weight and I also believe with all the stimulus the fed is pumping into financial markets, I want to own some U.S. banks.

My Oil Bets

Just 3 stocks so far. I'll admit some of my gains have evaporated with the sell off but I'm going to hold for now. If we see further pressure I will sell at the profit I have.

ARX up 9% Div = 8.9%
TOG up 10% Div = 8.1%
WCP up 22% Div = 8.4%

I also own TCW and BDI. I have enough invested in the oil sector. Hopefully crude starts to resume it's upward trend and the market rebounds. Having said that it was a good week for sales on stocks.

The job is to make a profit so cutting losers early is just a part of good money management.

Have you been buying the dip? If so what stocks?

Related Posts:

Should We Be Buying Oil Stocks?

I'm Still Buying Because Stocks Are Going Higher

My Dividend Portfolio Performance 2019

Just a short post on how my all stock 100% Canadian Bacon Portfolios did in 2019. Yuck! I even hate bacon but I don't hate these portfolios. I did add some U.S. stocks for 2020 so I won't be using that name again.

LIRA

Starting Balance - $65,054
Closing Balance 31 Dec 2019 - 85,222.04

Up 31%

Dividend Income = $3,163
Portfolio Yield - 4.8%

The PF holds 11 stocks and as of last week 1 U.S. Bank ETF; BMO, BNS, CNR, CP, CU, EMA, ENB, FTS, RY, TRP, TD and ZBK.

ZBK was a new purchase on 21 Jan 2020. Very small position with some dividend income accumulating in the account. This is my wife's main retirement account to supplement her pension income. She has another 13 years before we need to RRIF this account. It should do quite well.

Her RRSP

Starting Balance - $98,911
Closing Balance 31 Dec 2019 - 117,815

Up 19.1%

Dividend Income = $5,082
Portfolio Yield - 4.3%

The PF holds 16 stocks; AAPL, BCE, BIP.UN, BMO, BNS, CM, CNR, CP, CU, EMA, ENB, FB, FTS, RY, TRP, and TD. 

Apple and Facebook were new buys on 17 Jan. I wanted a little more growth for her as she has generous pensions and lots of time on her side. These were very small positions so we won't get killed in the long term. That's what this money is for.

My RRSP

Starting Balance - $83,277
Closing Balance 31 Dec 2019 - 98,726

Up 18.7%

Dividend Income = $3,912
Portfolio Yield - 3.75 %

The PF holds 14 stocks; AAPL, COST, MSFT, BCE, BMO, BNS, CM, CNR, CP,  ENB, FTS, RY, TRP, and TD. 

AAPL and MSFT recent buys.
I need to up my dividend game for my PF this year. Safe growing yield but missing CU and EMA which the other portfolios have.

My Final Thoughts

Stock Markets boomed in 2019.

TSX up 19% biggest gain since 2009
S&P 500 up 29% best since 2013
Dow up 22.3% best since 2017

In comparison percentage wise I'm happy. I get all that income to redeploy into adding to those dividend payers.

I don't buy broad market index funds because I don't reap the full dividend income and in Canada too many shitty companies in our index. This is what I do.

To help you filter out stocks to retirement on Henry Mah has written a great book that I have previously reviewed. It's called;

Your Ever Growing Income

I think you can get a lot out of Henry's strategy. Written for Canadians by a Canadian.

I will be adding to my pipelines, specifically IPL and PPL. Banks are cheap and utilities while expensive are a great stabilizer in lieu of bonds which I don't own.

Inflation is running at 2% while a ten year bond in Canada yields 1.53%
Why would you even consider doing that? You are falling way behind the cost of living. Keep growing that income by buying quality dividend growth stocks.

Fun fact: CIBC is Canada's highest yielding bank @ 5.2%
It has been the worst performer in 2018 and 2019. That's why I'll be buying more in 2020.

How did you do in 2019?

Income Investing and My Retirement Strategy

The REPO Market Explained and How to Profit From It

The reason I have a blog is to document my journey and to share my thoughts and ideas. 

This is just a short post on what's going on in financial markets and what I'm doing to to protect myself and hopefully profit from it.

In a recent survey it was reported that 50% of all Canadians are only $200 away from debt insolvency. Most believe they will never get out of debt. They are borrowing on their credit cards to pay the day to day bills.

The middle class will soon disappear in my opinion and just the very poor who are totally reliant on government for a paycheque (OAS, CPP and GIS) and the top 1%. The other 99% will just get steamrolled out of existence.

The government is even coming for your house, There is talk on capital gains on your principal residence. We already pay some of the highest taxes in the world.

We are all composites of people we meet, listen to and mentor us through life. Very few of us are originals. We have been trained and mentored and become what we hope is a better version of ourselves or a person we really look up to.

I listen to a lot of people, read blogs and visit discussion forums. Here is George Gammon with a great explanation on how the debt market works and functions.

How to Profit From The REPO Market

Just what I'm doing, again not telling you what to do. Forget that. People get all tied in knots.

Buy some physical silver to protect the purchasing power of the money in your pocket which every day is being inflated away. We all know prices on all things has gone up and is going up every day.

This is just insurance think of it that way. This is the other side of the REPO debt market trade. I'm not saying you hang on to you silver for life. It's an insurance policy and a way for you and me to have a hard asset away from the banking system that will not get eaten away by the ravages of inflation.

Here in Canada I buy Silver Maples. Accumulate whenever and however you can. Protect yourself.

The Stock Market

George doesn't go into what to buy. 

The other side of the trade and where all the money is going is the big investment banks so they have cash.

So it would seem to me the banks are a buy at this point. I'm buying and have bought some U.S. bank stock. Again, not as a forever hold and they will be sold at some point. Don't fight the fed, buy the banks. You have choices. JPM. GS, MS and C. You don't need them all. Just pick one.

I'm also buying tech. As I said yesterday and the day before.

I'm Still Buying Because Stocks Are Going Higher

Good luck and I hope George's video explained the REPO market so we all understand it a bit better.

Nobody knows everything or anything at all. This just makes sense to me in the current environment.

How are you preparing yourself? 

Should We Be Buying Oil Stocks?

Today I present a short rambling post on oil stocks, uranium and some financial events you might want to pay attention to or not.

Oil stocks for me are just trading positions. All commodities are made to be bought and then sold. I never hang onto them long term but if you have one paying a nice dividend and you like it then have at it.

The most widely talked about and what everyone in Canada buys and owns when it comes to oil are CNQ and SU. I get a lot of questions on VET also and what I think about it.

My answer is always I buy what's down in price and sell when it goes higher. Yes, easier said than done but stick to what is unloved. Companies nobody wants. I own none of the above mentioned companies.

In the U.S. the go to name is XOM Exxon Mobil. It pays a 5% dividend, just closed at $68.56  and has been as high as $83.49 in the last year. I don't own it. Should you buy it? It all depends on your time horizon, doesn't it. If you want to own oil or must own oil then why not? They just can't stay down forever. 

So those are the big dogs in North America where all the institutional money goes.

The world needs oil. The whole banking system and the military industrial complex all runs on oil. In our life time we will still use it and need it. How to profit from it? That's the question for traders and speculators.

What stocks will the money move to? Like I said I like to buy the unloved names.

Current Oil Holdings

I own 7 positions that combined are up 14.5%

AOI, ARX, BTE, BDI, TCW, TOG and WCP

The only one that I'm taking a hit on is BTE. I was too late to take profits a couple weeks ago when it was green.

I will most likely take profits on AOI as I'm up 15% in just 9 days. Faster than I thought so no sense getting greedy.

BDI and TCW are oil service/camp companies. Nobody wanted them a couple months ago so I pounced. I am up 17 and 30% respectively. I think there is more to come but I'm watching them closely.

ARX, WCP and TOG are my dividend payers in this space instead of the large cap names mentioned before.

Crude is getting bid higher so these might be good holds for now. You decide.

"The period of seasonal strength for the Energy Sector ranges from January 21st through to May 9th" - Equity Clock

Anyways that's what I own and what I think of oil stocks. There are lots out there to look at. BIR, CPG, BNP, CJ, PEY and on and on. Pick your horse if you so choose. This sector in Canada is challenged and mired in new carbon taxes, political controversy and numerous unending court challenges. BUY what nobody wants!

What's Going On?

Is America going to war with Iran. So far showing great restraint. They also lied when they told us nobody was hurt after the missile attack on the airbase. Hmmmm!

This has given us an avalanche of rhetoric coming out of Iran. The Ayatollah is in constant spin mode so we know something else in the region is going to blow up. You can feel it. This is why crude is catching a higher bid every week. Slowly mind you but it's higher.

Billions of dollars right now are being pumped into the debt market to help provide liquidity to the investment banks and fund managers. They need money every day. The Fed is printing that money and then lending out to the banks.The banks are in control because they provide the system with much needed cash. The feds balance sheet has gone parabolic. It's absolutely nuts the money they are pumping into this rigged system.

Stocks are going higher every day because all that money is looking for a home that pays it the most. Some of it pays bonuses, some of it share buy backs and some of it to the treasury market. Rates are so low most of the money is buying stocks that pay dividends.

Investing for Dividends in the Canadian Oil Patch

My Final Take

Another area of Energy that is unloved is the uranium stocks. When to buy? Dunno exactly. I have been in and out of EFR but so far no momentum and institutions don't want to play. Depending on your time horizon this is another area that is setting up to move higher. Watch uranium, the price is down and there aren't that many producers out there. I'm looking to catch the next wave up.

Be careful this is speculation and only invest here if you can afford to lose it all. I never invest more than $4K per position. Just what I do.

Do you own any oil stocks? If so, Which ones?

I'm Still Buying Because Stocks Are Going Higher

Yes, I think they are. Stocks that is, going higher. What else is going on with these new highs being reached every day?

No doubt we're still in a massive bubble for all assets. The fed continues to pump money into the repo (repurchase agreement) market. The fed is going to prop up these investment banks to avoid a repeat of 2008-9.

Why are they running out of money?

The economy is supposed to be so great. Unemployment at 50 year lows. Stock market making new highs every day. Yet, banks need money and need it every day. Maybe it's just all a great big fat manipulated lie.

Inflation is running at 2% yet retailers are running out and buying bonds at 1.75% for a ten year U.S. bond. This is madness.

How about that trade deal with China? You know the biggest one in the history of the world. Where was the big guy President Xi? He didn't show up for the signing of the greatest deal in history. Ya sure it was. Have another drink. HA!

The money is being used to purchase stocks and risky assets so the J.P. Morgans of the world can lend it out to hedge funds so they can pay bonuses and make money on the spread.

Without the fed priming this pump they all go bankrupt like Bear Stearns. They are literally signalling to us on a daily basis that stocks are going higher. Why? They keep borrowing money to feed the bubble. The Fed and the banks are running the show and feeding their habit. They really do run the world, so follow the money.

In this election year the money is going into buying stocks. Buy the best companies and the biggest players in their field. Expect more of this to continue in my view.

Recent Buys

I recently bought positions in AAPL, FB, MSFT and ZBK.

Why? I like to buy what I use.

Also watch the kids.

What are they doing? Pay attention

Playing on an iphone, checking Facebook and Instagram. They go home and watch Youtube videos and love to order all kinds of shit on Amazon and now watch Amazon Prime. This is what they do and why these stocks are going much higher. Oh, did I mention Google owns Youtube. Ya you gotta own GOOG too!

I own an iphone, just recently bought my wife an ipad and Apple TV and subscriptions are booming along with Macs, Beats and Apple Care. It's a great company and I own lots of their products.

On the investment side and whether it's a good buy is a personal opinion. Trump has said "I love Apple" even though he fights for the keys to their back door. The shares have only rocketed higher.

Spits out $43B in free cash flow per year
ROE of 56%
p/e = 21

Berkshire owns $77B worth of Apple shares.
Buffett is the GOAT
Without the 7-1 split of 2014 AAPL would be $2100 per share.

Nothing says we can't hit more all time highs. The only ones who say we can't have never lived through a bull market. Have you? The fact is nobody knows when this will end.

This is a trading position for me. Looking at $350-400 to exit.

FB Facebook

Their market share is anyone connected to the internet. 140M small businesses use FB as a marketplace. What is Shopify again?

Facebook also owns Instagram where people you see staring at their phone screen are accessing 100 times a day every day.

Buy anytime it drops. Why? There is no social media platform that will replace FB anytime soon. If there is please let me know.

p/e =24
ROE = 21%
FCF = $14.3B

Revenue = $66.5B

It's an amazing juggernaut and is only going higher in 2020 IMO.

I also wrote about FB here.

MSFT Microsoft

p/e = 27

ROE = 43%
FCF = $34B

Revenue = $130B

They just make money. I just updated my computer to Windows 10. It's installed on every other computer NOT named Mac.

Skype, Outlook, Office, Messenger and Video Chat calls. It really is the internet of things. We all use it so deal with it and invest.

U.S. Banks

The king of debt, POTUS loves banks. He borrows his way to riches from banks. I have never owned them and instead of trying to cherry pick individual names here I just bought the ETF - ZBK from BMO. It's an equal weight holding with some JP Morgan, Citigroup and Bank of America.

MER = .37%
Yield = 2.17%

YTD it's up 29%

The banks are going higher because their being pumped up. Whether this is the right way to play it remains to be seen. I'm buying it for continued growth and not the income. Looking for a trend reversal and then I'm out. You could just buy Goldman Sachs but I believe this is a little less risky. I'm only looking to hit a single here.

2020 Other Picks/Buys

COST Costco

You have to eat, we all do. I'm a member and also a happy shareholder. 

I also wrote about Costco here.

Visa
Mastercard
Google
Amazon
Proctor and Gamble
Johnson & Johnson
Berkshire Hathaway
WalMart

Pick away when you have the money, sell when you need the money and in between do nothing.

Risk Plays

Own some gold, silver and now it seems that crypto is getting bid higher. $11,610 CDN

Up 24% in the last month and up 148% in the last year. Hard to ignore those returns and piss on bitcoin. I don't own any as I have my hands full at the moment.

ROXG Roxgold

New Buy

I bought 5000 shares. Currently trades at 0.91 but has been as high as $1.42.

Would love to make 10-20% here nothing greedy. It's risky as a penny dreadful gold stock operating in Burkina Faso. If these stocks start to catch up to the rise in the spot price of gold they should do well. If it goes down 10% I'll cut my losses.

At 230 square kilometers they own a big property with loads of potential.

In this hyper inflated stock market I think owning some gold is a good idea. Buy some physical if you want. Protect yourself. This might get ugly.

My Final Take

I believe stocks are going higher. I bought some US stocks because besides COSTCO I owned none.

Everyone is reducing, waiting for the crash, or the great reset. They're sitting in cash waiting to get hit by a car. I like to do the opposite because the herd is usually wrong.

I'm just playing the game until the worm turns and this market goes the other way.

So far the fed is not allowing that to happen as they keep injecting more drugs into this addicted body called the stock market.

"The stock market is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There's also a negative side." Adapted - Hunter S. Thompson

Don't hate the player, hate the game! - Gregory Mannarino

Just what I'm doing and not recommending you do the same. I don't own any bonds, pref shares, mutual funds or ETFs in my retirement account.

Everything listed above are trading positions and will be sold when I believe the time is right. Right now buy the banks and these large cap tech stocks. Amazon and Google will be bought shortly in the same account.

The market wants to go higher. The market is going higher. The highs of 2019 can be replicated by new highs in 2020. Nobody Knows Anything or Everything!

Take care!

3 Down and Out Stocks

When looking for stocks to trade I never buy stocks approaching or at 52 week highs. Sure they can still go up in price but how high and when do you lock in profits?

My intention here is to document my trading journey and experience. This is nothing new or an earth shattering strategy. I buy and look for beaten down stocks with the intention of selling them at a higher price.

This is not for everyone and I am not guaranteed to not lose money on these stocks. Matter of fact depending on my entry point I will sell at a loss and look for other opportunities. Where exactly is that? Nobody knows where the low or the high for the stock is.

This is where greed takes over. Anyways, here are 3 stocks I recently bought that look like they have a chance to make up some lost ground and are well off their 52 week highs.

TRQ Turquoise Hill Resources

52 week high $2.84

Current price $0.88

Price paid $0.87

This is a play on one of the biggest copper/gold/silver deposits in Mongolia. Lots of risk here. The company holds a 66% interest in the Oyu Tolgoi deposit. I like the risk/reward here. Small position of 5000 shares. Do your own DD this is just what I bought ATM. No dividend.

STLC Stelco Holdings Inc.

52 week high $20.01

Current price $10.46

Price paid $10.71

Is steel dead just like uranium? You would think so looking at the price of Stelco stock. Nobody wants it. Perfect. I'll gladly bide my time waiting for the price to recover. It has a low p/e and a 32% roe which is usually a good sign except for the fact that Stelco is bleeding cash and earnings are falling. Not good. This is a pure gamble and as you can see I didn't get in at the bottom. It's up 20% since hitting a 52 week low. I own 375 shares. Dividend of 3.6%.

WEF Western Forest Products

52 week high $2.20

Current price $1.22

Price paid $1.19

Lumber stocks being chucked out the door and are sincerely unloved. This is a troubled industry in Canada. Mills closing and layoffs are the name of the game. Housing still a strong sector with low interest rates and lack of new homes.

Lots of labour strife here and the stock is down 42% on the year. Company is losing money and who knows may go bankrupt. If you have a weak stomach stay away from WEF and buy WFT if you want to play lumber. I own 3500 shares. Dividend of 7.4%

My Final Take

There you have my latest 3 buying opportunities. Copper, steel and lumber. I'm not in love with any of these stocks. Can they go down further? Sure. I like to ignore stocks trading at market tops and would rather roll the dice on stocks that may turn things around and start to go back up.

I only invest $4K in speculative positions. If you can't afford to lose money stay away from stocks at the bottom.They could fall further. I don't let them fall too far so I keep my losses small. That's usually around 10%.

I also only do this in an open account so I can claim losses against any gains I may have.

How do you pick stocks?