Investing

Anyone else selling and moving to cash?

  • Last Updated:
  • Oct 13th, 2018 6:20 pm
Deal Addict
Mar 22, 2012
1910 posts
291 upvotes
Toronto
If you didn't have good trading principles (all your money in 1 stock or 1 industry, putting all your money in stocks, etc), sure.
Deal Addict
User avatar
Aug 4, 2014
1450 posts
483 upvotes
Toronto, ON
alanbrenton wrote:
Oct 1st, 2018 1:43 pm
The only categories of funds I'm able to move into I've already listed.

It's part of our group RRSP.
Ah, ok :) I did my work group allocation pretty simple: my portion US index, company match international index (so 50/50) + buying company stock (it’s one of the big 5 banks), also with company match, for Canadian exposure :)

In my previous company, I had small caps MF for Canadian portion (as I believe this is one of a few areas active management can help) But didn’t hold it long enough to find out if it beat the index - due to changing jobs.. :)
Newbie
User avatar
Sep 6, 2018
37 posts
7 upvotes
I just bought a lot of SPY today.. S&P500 etf... Will buy more tomorrow if I find lower prices..
Deal Addict
Jul 3, 2007
1183 posts
1287 upvotes
Toronto
dow up ...tsx sideways or down..... dow down... tsx down big....

does the tsx ever really go up ? this year has been unbelievably frustrating ..... bce enbridge etc.... all down .....where do you put your money?

cant have everything in the banks, or maybe you can lol
Member
Feb 5, 2017
394 posts
209 upvotes
joepipe wrote:
Oct 4th, 2018 12:14 pm
dow up ...tsx sideways or down..... dow down... tsx down big....

does the tsx ever really go up ? this year has been unbelievably frustrating ..... bce enbridge etc.... all down .....where do you put your money?

cant have everything in the banks, or maybe you can lol
I am reducing my stock exposure to 10% of my portfolio

Have 60% in preferred shares ETFs but selling these too

Going back to cash because I want to sleep well this weekend

I don t see why and how or when will the TSX outperform the other indexes so I am almost out of it

Emerging markets are almost 20% down since march 2018.

I think that this wave will reach the US stock market sooner than later.
Sr. Member
Oct 21, 2014
920 posts
727 upvotes
Burlington, ON
joepipe wrote:
Oct 4th, 2018 12:14 pm
dow up ...tsx sideways or down..... dow down... tsx down big....

does the tsx ever really go up ? this year has been unbelievably frustrating ..... bce enbridge etc.... all down .....where do you put your money?

cant have everything in the banks, or maybe you can lol
Yup, machines going wild today. I've got a few bucks kicking around and looking to grab some stock on the cheap.
Sr. Member
Feb 26, 2017
748 posts
337 upvotes
Gungnir wrote:
Oct 4th, 2018 12:37 pm
Yup, machines going wild today. I've got a few bucks kicking around and looking to grab some stock on the cheap.
What are you looking at buying?
Sr. Member
Oct 21, 2014
920 posts
727 upvotes
Burlington, ON
Chance7652 wrote:
Oct 4th, 2018 12:55 pm
What are you looking at buying?
I might add BNS or more TD here. TD is well positioned for interest rates rising in the US. Also like Texas Instruments on the US side as it just had a strong quarter, raised dividend by 24% and announced a big buyback, very shareholder friendly. Also Emera, Fortis and Canadian Utilities are pretty good but as pointed out if there is a strong job number tomorrow and rates rise you can wait until then and get a better entry.
Sr. Member
Feb 21, 2010
648 posts
143 upvotes
Scarborough
i did cash some out last month. Ready to buy SP500 again in pieces from 2850 onwards. Ready to go to zero cash if SP500 hits 2625
Member
Feb 5, 2017
394 posts
209 upvotes
65% cash, 10% stocks, 10% GICs, 15% bonds


ahh it feels so good... now, let's have a black friday or two
Deal Addict
Jul 3, 2007
1183 posts
1287 upvotes
Toronto
funny how I just mentioned this yesterday!

Member
Jun 3, 2012
496 posts
183 upvotes
Scarborough
joepipe wrote:
Oct 4th, 2018 5:57 pm
funny how I just mentioned this yesterday!

It makes little sense to invest in Canadian companies other than tax advantages, but still. I'll pay the tax on a 45% ROI than no tax on 2.4%.
Deal Fanatic
Feb 9, 2009
6514 posts
3618 upvotes
joepipe wrote:
Oct 4th, 2018 12:14 pm
dow up ...tsx sideways or down..... dow down... tsx down big....

does the tsx ever really go up ? this year has been unbelievably frustrating ..... bce enbridge etc.... all down .....where do you put your money?

cant have everything in the banks, or maybe you can lol
arent you a big rate hike advocate and want the real estate market to crash? what do you think happens to stocks over time when rates go up or threaten to go up...??? sure as hell arent piling in to bce or enbridge...
Deal Addict
Jul 23, 2007
3510 posts
1323 upvotes
Up to them of course, but in regards to the performance of the U.S. market versus the Canadian equity market, it appears at least a few investors are suffering from recency.

Performance of TD e-Series funds since inception 11/26/1999

TD Canadian Index Fund e Fund Code TDB900 6.36%

TD U.S. Index Fund e Fund Code TDB902 4.63%
Deal Addict
Nov 9, 2013
2423 posts
1066 upvotes
Edmonton, AB
joepipe wrote:
Oct 4th, 2018 12:14 pm
dow up ...tsx sideways or down..... dow down... tsx down big....

does the tsx ever really go up ? this year has been unbelievably frustrating ..... bce enbridge etc.... all down .....where do you put your money?

cant have everything in the banks, or maybe you can lol
Stryker wrote:
Oct 5th, 2018 5:08 am
Up to them of course, but in regards to the performance of the U.S. market versus the Canadian equity market, it appears at least a few investors are suffering from recency.

Performance of TD e-Series funds since inception 11/26/1999

TD Canadian Index Fund e Fund Code TDB900 6.36%

TD U.S. Index Fund e Fund Code TDB902 4.63%
As bond yields go up, dividend yields go up correspondingly (meaning equity prices go down). If you could get a 10 year US Treasury at 3% that is basically nearly zero risk, why would you buy a dividend stock paying 3-4% yield? You wouldn't; so prices come down, yields go up.

In periods of declining rates yields come down (asset prices go up). Dividend stocks (in general) are going to face a massive head wind in the medium to long term if rates keep going up. Some (like financials) should buck this trend as they make a greater net income as rates go up. Others (utilities, telecos, like BCE) which are just basically bond surrogates, will get doubly punished as they tend to be heavily indebted as well.

As @Stryker is alluding to, one year is too short a time frame to evaluate your strategy.

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