For What It's Worth; November Updates
First I will touch on the CDN$ and that is appropriate since many of my clients are getting ready to head south for the winter and many others may spending some time in a US$ country.
As the chart shows the CND$ is in the middle of its recent 12 month range. Depending on a variety of factors the next move could be towards 78 cents or 74 cents. My suggestion (nothing new here) is
Buy ½ now so at least you will be partly right :)
The next chart is for the GOLD BULLS who are still out there. This chart shows a small movement higher during the recent equity pullback BUT not a significant move higher. Inflation is still LOW and when it comes right down to it GOLD is a hedge against inflation. Short term RESISTANCE is just above current prices so if equity markets continue to stabilize gold may pull back to its recent lows. OWNING gold in 2018 has been negative for a portfolio.
BOTTOM LINE: some portfolio protection provided during stressful times BUT low overall returns expected.
Now to the equity markets…the recent rally has recovered about ½ of the drop that started late September. Good news for those that did nothing and better news for those that allocated cash at the lows. The US market has recovered more of the ground lost than the Canadian market. Part of that could be due to weakness in oil prices during the last month or so.
Now to specific investment ideas I continue to suggest a portion of EVERYONE’s portfolio have allocation to PRIVATE equity and fixed income to REDUCE volatility.
My goal continues to be ‘generating TARGET RETURN with the LEAST amount of volatility over a market cycle (5-7 years normally).
Over the last 40 days I have suggested NOT to sell positions that were down to move to lower volatility assets as that would be LOCKING IN THE LOSS. Now that markets are recovering clients that do not have exposure to PRIVATE investments should start to build positions. (please contact the office to discuss this or email me and I will review your portfolio)
With that in mind I continue to suggest NATIONWIDE storage and I attached a video explaining the current investment.
YEAR END TAX PLANNING
For those with investment assets outside of RRSP/RRIF and TFSA’s there may be some tax planning to be done with regards to triggering capital losses and capital gains. A near term meeting is suggested as this needs to be done before end of year.
For those that have some income in the 42% and above tax bracket I have also included a video on a FLOW THRU investment. This type of investment can benefit most higher income earners (only suitable for investing outside of RRSP/RRIF & TFSA).
This is the video of an interview yesterday that sparked a rally in most ‘weed’ stocks.
Bottom line is that after Michigan voted to legalize cannabis yesterday 68% of the US population has exposure to marijuana.
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‘historical analysis does not reflect future returns’