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Locked: What did you buy? What might you buy??

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Sep 8, 2007
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Jeenyus1 wrote: He takes a very hands on approach.

Face With Tears Of Joy
The market must think he can plug all the holes in the economy.
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Jun 28, 2018
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Jeenyus1 wrote: He takes a very hands on approach.

Face With Tears Of Joy
cartfan123 wrote: The market must think he can plug all the holes in the economy.
First it's the Sander = Apocalypse narrative that got pushed everywhere on financial news (many examples, but last one I remember Berman on BNN saying don't discount Sanders). So him out of the way clears things.

Second, less uncertainty on potential President

Third, It's also likely that the market thinks Trump will win. Biden is an easy target for Trump.

Fringes are going to have a field day destroying him at no expense for Trump. Knowing Trump though, you already know he won't be able to resist saying things like:

Touchy uncle Biden, Ukrainian Biden, bribe taking family Biden, China stooge Biden, etc
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johnnychi wrote: First it's the Sander = Apocalypse narrative that got pushed everywhere. So him out of the way clears things.

Second, less uncertainty on potential President

Third, It's also likely that the market thinks Trump will win. Biden is an easy target for Trump.

Fringes are going to have a field day destroying him at no expense for Trump. Knowing Trump though, you already know he won't be able to resist saying things like:

Touchy uncle Biden, Ukrainian Biden, bribe taking family Biden, China stooge Biden, etc
I don't really know Biden's campaign promises other than he's somewhat a typical "middle of the road" democrat but if he centers his campaign around tax cuts for the middle class and reduced geopolitical or even possibly reversal of China tarrifs, I think he might be good for the stock market as well even if he loses to Trump but the horizon definitely looks much clearer now with Sanders having a slimmer chance now.
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callernamet wrote: anyone have insurance stocks? any recommendations that industry?
Insurance industry keep in mind IFC, SLF, MFC, GWO, POW (PWF?), etc some focus on different thing like property and casualty, health, etc.

Generally speaking, low rates are not good for financials in general. I think banks were taken flat footed with the half point cut.

Basic idea of the financial industry: banks borrow short term lend out long term. Insurers buy bonds and other yielding financial assets with insurance premiums.

Insurers typically take your insurance premium and buy safer things like bonds. When long term bond yields go down the returns are lower (and price may be higher. Though it also means bond prices go up benefiting existing holdings.)


Similar with banks getting hit by low rates. They borrow short term and lend out long term. In a healthy economy short term yields are low and long term rates are higher. When things are bad typically you hear about the yield curve inversion. This means long term yields go below short term. Banks end up borrowing at short term rates higher than their long term loans.

So rates go down and are compressed meaning they don't make as much.
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johnnychi wrote: First it's the Sander = Apocalypse narrative that got pushed everywhere on financial news (many examples, but last one I remember Berman on BNN saying don't discount Sanders). So him out of the way clears things.

Second, less uncertainty on potential President

Third, It's also likely that the market thinks Trump will win. Biden is an easy target for Trump.

Fringes are going to have a field day destroying him at no expense for Trump. Knowing Trump though, you already know he won't be able to resist saying things like:

Touchy uncle Biden, Ukrainian Biden, bribe taking family Biden, China stooge Biden, etc
Many have said he's got a good feel for the economy!
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May 31, 2018
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This week looking at SU, IPL, NTR, BCE. Probably deploy 25-35% of available cash to start and see where things go next week.
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Still looking at MFC and AC. Might also add RY.
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Doubled down on my AVGO position.
- insider selling is a bit troubling
- earnings report on Mar 12 (est date)

Done buying as I'm fresh out o'cash.
SPX will have to hit Dec 2018 lows before I consider margin. ~2350

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Purpose of posting: data for sentiment for those who watch such things.
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does it matter?
johnnychi wrote: Insurance industry keep in mind IFC, SLF, MFC, GWO, POW (PWF?), etc some focus on different thing like property and casualty, health, etc.

Generally speaking, low rates are not good for financials in general. I think banks were taken flat footed with the half point cut.

Basic idea of the financial industry: banks borrow short term lend out long term. Insurers buy bonds and other yielding financial assets with insurance premiums.

Insurers typically take your insurance premium and buy safer things like bonds. When long term bond yields go down the returns are lower (and price may be higher. Though it also means bond prices go up benefiting existing holdings.)


Similar with banks getting hit by low rates. They borrow short term and lend out long term. In a healthy economy short term yields are low and long term rates are higher. When things are bad typically you hear about the yield curve inversion. This means long term yields go below short term. Banks end up borrowing at short term rates higher than their long term loans.

So rates go down and are compressed meaning they don't make as much.
Thanks for that info. Since my TFSA is almost full and have cash in unregistered account trying some new may be risky ventures.
"Laws for thee but not for me!" I will keep on jet-setting around the world. Spend as much as I can and enjoy vacations Free at Friends estate. Do as I do not as I say. I used to pay for my vacation until I met my hero.
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johnnychi wrote: Insurance industry keep in mind IFC, SLF, MFC, GWO, POW (PWF?), etc some focus on different thing like property and casualty, health, etc.

Generally speaking, low rates are not good for financials in general. I think banks were taken flat footed with the half point cut.

Basic idea of the financial industry: banks borrow short term lend out long term. Insurers buy bonds and other yielding financial assets with insurance premiums.

Insurers typically take your insurance premium and buy safer things like bonds. When long term bond yields go down the returns are lower (and price may be higher. Though it also means bond prices go up benefiting existing holdings.)


Similar with banks getting hit by low rates. They borrow short term and lend out long term. In a healthy economy short term yields are low and long term rates are higher. When things are bad typically you hear about the yield curve inversion. This means long term yields go below short term. Banks end up borrowing at short term rates higher than their long term loans.

So rates go down and are compressed meaning they don't make as much.
Interest rates are something to think about but the most important aspects of insurance are a companies underwriting ability. Rates can be moving in a favourable direction but at the end of they day if they suck underwriting and pay out more in claims than they take in it doesn't matter what rates are doing.

Also insurance companies are generally thought of as no moats but think about personal behaviours. Once someone has shopped around for a policy and committed, when it's up for renewal, do they re-initiate the shop around process or just generally renew, assuming service has been ok?

Out of all of the ones listed I own IFC and it's the only one on that list I would consider buying. It has lots of favourable aspects - quality underwriting, expanding into US in a somewhat fragmented industry, benefits from de-regulation in Canada, car owners are legally required to have insurance (unlike life or disability insurance), quality management. The problem with IFC is that it's pretty expensive right now.
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treva84 wrote: Interest rates are something to think about but the most important aspects of insurance are a companies underwriting ability. Rates can be moving in a favourable direction but at the end of they day if they suck underwriting and pay out more in claims than they take in it doesn't matter what rates are doing.

Also insurance companies are generally thought of as no moats but think about personal behaviours. Once someone has shopped around for a policy and committed, when it's up for renewal, do they re-initiate the shop around process or just generally renew, assuming service has been ok?

Out of all of the ones listed I own IFC and it's the only one on that list I would consider buying. It has lots of favourable aspects - quality underwriting, expanding into US in a somewhat fragmented industry, benefits from de-regulation in Canada, car owners are legally required to have insurance (unlike life or disability insurance), quality management. The problem with IFC is that it's pretty expensive right now.
Thanks for adding detail.

Insurance companies are huge and have different lines of business.

Speaking generally, disasters help P&C insurers by allowing premiums to get bumped up.

As well on industry competitiveness level incumbent insurance companies have wide moat because of their huge reserves, network, and data.

One potential thing coming is government regulation on the condo insurance issues we've been getting. Condos in cases have not been able to get insurance and premiums have exploded higher.
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Oct 26, 2003
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I don't get why people buy air canada, I know the stock appears to have value but remember they were very low only few years ago and will take a long time to recover from this.
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divx wrote: I don't get why people buy air canada, I know the stock appears to have value but remember they were very low only few years ago and will take a long time to recover from this.
Recover from what? The only thIng Air Canada needs is market normalization. You have a company producing huge free cashflows, sorted out their debts, invested in their aircraft and now buying back shares while very discounted. Yes, demand is lower now due to travel restrictions, but do you honestly believe this is going to last forever? Additionally, the COVID-19 will shakedown weaker competition. Airlines like Hainan, Korean, Lufthansa etc. are debt ridden, weak and could exit markets in the aftermath leaving AC to fully take advantage of the situation. You buy when low and sell when high. I'm not in it for a trade On my buy here.
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jackrabbit000 wrote: Have you ever noticed that when one guy posts he's buying xxx stock, everyone else on here (besides me) buys into the same stock? AC stock was low all right, they restructured and came back at something like $20.
TO be fair, a good amount of it is likely confirmation bias responses. If someone happened to buy AC and noticed someone posted here they did, they'll often respond they have done the same.
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LOL @ buying airlines. I would buy things that won't get affected when COVID-19 becomes a pandemic.

Think ESSENTIALS. Hydro One is a perfect example. It's revenue stream should be 100% impentetrable to COVID-19. Don't own HYDRO ONE but would be a GREAT BUY.

Another stock is something ONLINE where COVID-19 can't ENTER. An online gambling site like Poker Stars would be great.

Long online gaming companies | short physical ones (think Gamestop).

Long utilities with contracted rates | short physical manufacturers (Autos, machinery, insdustrial, etc.)

Long private medical facilities (think WELL.V) | short concerts like MSG (Madison Square Garden) stocks
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Hmmmm no comments on BoC 50 basis point rate cut?

REITs are on fire.... CAR.UN as an example (because I have) hitting new all time highs.

Telcos.... T now $1 from secondary offering price $52, hit around $48 when market was dropping.


Bought some REI.UN because they're continuing to shift portfolio to apartments. Price relatively steady.

Yesterday, bought a more speculative REIT NXR.UN


Adding speculative thought. Scared unhappy people might snack on junk more. Maybe RSI supplier of sugar gets a bump longer term (aside from rate cut). Unless production issues and shipping. Then maybe the actual value add confectionary producers, but they are foreign. (Aside from people prepping at Costco).

Naturally, and we've already seen restaurant type stocks get sold. Example suggested to a friend a couple months ago it may make sense to dump RECP and possibly LSPD. (I didn't dump, they always find the "best" time to do share offerings.)
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wolfs004 wrote: LOL @ buying airlines. I would buy things that won't get affected when COVID-19 becomes a pandemic.

Think ESSENTIALS. Hydro One is a perfect example. It's revenue stream should be 100% impentetrable to COVID-19. Don't own HYDRO ONE but would be a GREAT BUY.

Another stock is something ONLINE where COVID-19 can't ENTER. An online gambling site like Poker Stars would be great.

Long online gaming companies | short physical ones (think Gamestop).

Long utilities with contracted rates | short physical manufacturers (Autos, machinery, insdustrial, etc.)

Long private medical facilities (think WELL.V) | short concerts like MSG (Madison Square Garden) stocks
Reactionary investing is the worst way to go. Not surprised this is how you would move, but if you really think the world is ending, I would cash out if I were you.
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wolfs004 wrote: LOL @ buying airlines. I would buy things that won't get affected when COVID-19 becomes a pandemic.

Think ESSENTIALS. Hydro One is a perfect example. It's revenue stream should be 100% impentetrable to COVID-19. Don't own HYDRO ONE but would be a GREAT BUY.

Another stock is something ONLINE where COVID-19 can't ENTER. An online gambling site like Poker Stars would be great.

Long online gaming companies | short physical ones (think Gamestop).

Long utilities with contracted rates | short physical manufacturers (Autos, machinery, insdustrial, etc.)

Long private medical facilities (think WELL.V) | short concerts like MSG (Madison Square Garden) stocks
The problem is Utilities are expensive. It my largest sector at 28% of my portfolio and I'm very bullish on them long term. I still don't think I'd be buying them at current prices.

I think there could be opportunity in pipelines. Its out of favor but also has nothing to do with the Corona virus. I ended up picking up more ENB on Friday. The pipelines dropped a lot last week and the prices weren't making any sense to me. I think with the volatility they could drop again.
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Jan 27, 2006
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johnnychi wrote: First it's the Sander = Apocalypse narrative that got pushed everywhere on financial news (many examples, but last one I remember Berman on BNN saying don't discount Sanders). So him out of the way clears things.

Second, less uncertainty on potential President

Third, It's also likely that the market thinks Trump will win. Biden is an easy target for Trump.

Fringes are going to have a field day destroying him at no expense for Trump. Knowing Trump though, you already know he won't be able to resist saying things like:

Touchy uncle Biden, Ukrainian Biden, bribe taking family Biden, China stooge Biden, etc
I have no doubt that Trump will start attacking Biden with everything he has, can dig up, can make up, or just plain lie about. However, one thing that Trump can't do right now is how Covid-19 will affect the voter sentiment. After all, what is going to do? Say that the deep state within the government created the virus since they couldn't take him down in other ways?
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May 22, 2003
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johnnychi wrote:

REITs are on fire.... CAR.UN as an example (because I have) hitting new all time highs.
Not my H&R REIT holdings :*(

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