Stockmarket September 2011

[sunseeker]

A monthly income equal to 17.55% per annum from a portfolio comprising of these companies and weightings.

Barrick Gold Corp 3.4%
BCE Inc 3.4%
Bank Of Montreal 3.4%
Bank Of Nova Scotia 3.3%
Cameco Corp 3.0%
Canadian Imperial Bk of Comm 3.2%
Canadian Natural Resources Ltd 3.3%
Canadian National Railway Co 3.3%
Cenovus Energy Inc 3.3%
Encana Corporation 3.3%
Enbridge Inc 3.4%
Goldcorp Inc 3.4%
Great West Lifeco Inc 3.5%
Husky Energy Inc 3.3%
Imperial Oil Ltd 3.4%
Ivanhoe Mines Ltd 3.2%
Manulife Financial Corp 3.3%
Magna Intl Inc 3.0%
Potash Corp Of Saskatchewan 3.3%
Power Financial Corp 3.4%
Rogers Communications Inc 3.4%
Research In Motion Ltd 2.9%
Royal Bank Of Canada 3.4%
Sun Life Financial Inc 3.4%
Silver Wheaton Corp 3.1%
Suncor Energy Inc 3.4%
Teck Resouces Ltd 3.4%
Toronto-Dominion Bank 3.4%
Thomson Reuters Corp 3.3%
Transcanada Corp 3.4%


http://jovian.transmissionmedia.ca/pdf/alphapro/HEX_EN.pdf

http://tmx.quotemedia.com/quote.php?qm_symbol=HEX&locale=EN

The fund writes covered options......
Manager Eden Rahim has 20 years experience writing covered options. Formally a five star growth manager with RBC Growth Fund. Then he generated 9.5% returns in difficult market conditions (1998 to 2003).

As a UK citizen I'm also looking to the Loonie to out perform the £.

You don't get these levels of return risk free.
You do get a good portfolio of Canadian companies, and the option writing experience of the manager.

I've had my eye on this for a couple of weeks (after reading about it) and I felt that this was the day to take the plunge.
For the record 8.67 CAD.

Should generate a nice monthly income to fund my gold/silver habit. 

ATB 

[Uboat]

An alternative income ETF  is the BMO Covered Call Canadian Banks ETF "ZWB"

http://www.theglobeandmail.com/globe-investor/investment-ideas/portfolio-strategy/market-storm-a-good-trial-for-new-etfs/article2152415/page2/

[sunseeker]

Hi UB
I hadn't come across ZWB until you mentioned it.


I'm sticking with HEX for it's more diverse holdings and superior dividend yield.       
If I'm ever looking for a purely banking focused vehicle, then I'll consider “ZWB.”
It's now in my mental database.                               

Well I can always use the excellent search facility here on B-H-S-H to jog the brain cell(s).

Any/all good information very gratefully recieved. 

ATB 

[sunseeker]

Cutting out all my other ramblings to get to the point…...........................>

http://www.mineweb.com/mineweb/view/mineweb/en/page96990?oid=134947&sn=2010+Detail&pid=92730


Perhaps we ought to be considering the Venezuela/Hugo Chavez approach to our own portfolios?

he's probably got the largest oil reserves in that part of the world too so his cash flow will be oil, his reserves have now been diversified into the BRIC country currencies and into gold - so going forward it looks a very sound growth portfolio.

Gold and Oil.

ATB 

Following that post, and another post on what Lindsey Williams said about oil early September......

I'm eating my own cooking.

I'm already well overweight (GOLD).

Now I've added a bit of oil to the recipe (on todays weakness).......

Leveraged crude oil “LOIL”

And

Royal Dutch Shell “RDSB”

Will I be piling on the pounds (£) 
.....or suffering indigestion?   

Only time will tell.

ATB 

[onlooker]

Hi SS:

I brought some oil stocks this summer, because I thought that I needed some diversification and that the Arab uprising would get worse.  I regretted it, because the price of oil went down instead of going up.   

On the other hand, I have done very well with gold stocks.  So, I am going to stick with gold stocks and nothing else.

I think there's a lot of truth to:
 
"Diversification is over-rated, and at times diversification is stupid" by JDH on April 2, 2011

http://www.buy-high-sell-higher.com/2011/04/02/diversification-is-over-rated-and-at-times-diversification-is-stupid/

Still, in comparison to oil prices in the spring and summer of this year; they are now, cheap.

I don’t think you are going to lose anything by dabbling into oil stocks this fall.

And like you say, Only time will time.

[sunseeker]

Hi OL

When I diversify I don't diversify just for the sake of it.
When I see an area that I think is going to have upside I like to look at ways to ease myself in without undue risk at first.Wondering why LOIL (2X Oil)? I put only half what I would normally put into something at the outset (keeping half my capital free for similar upside). Another tactic is to look for Trusts/ETF's with an emphasise in the area I'm looking at. Less upside but a safety net.

Sometimes I'm just plain lucky.  

Back to Lindsey Williams...

Israel evacuates ambassador to Egypt after embassy attack

Egypt declares state of alert after three die and more than a thousand are injured as crowds storm the Israeli embassy in Cairo

http://www.guardian.co.uk/world/2011/sep/10/egypt-declares-state-alert-embassy

Handing the middle east over to the “Muslim Brotherhood,” as Williams also suggested will happen?

The Arab Spring has been painted as......



…...a good thing. Not if it leads to instability in the region.

IMO
It's more likely to lead to a Western Winter.

ATB  

Very Late Addition

On the subject of Egypt.

I posted........

http://buy-high-sell-higher.com/forum/general-discussion/how-did-america-get-in-this-economic-situation-and-how-do-we-get-out-t1034.0.html;msg15027#msg15027


http://www.chrismartenson.com/blog/egypts-warning-are-you-listening/52575



The figures speak for themselves.

We shouldn't be encouraging unrealistic expectations from regime change.
That may just serve to create bigger problems for us both outside and inside our own countries.


ATB 

[sidewinder]

When the oil dries up they will return to the former barbaric state complete with the carnage associated with death and misery created by religious myths.  There is nothing you or I can do about that nor should we really care. 

[Uboat]

Hi SS,
MVO, Mv Oil Trust works well for me, plus 7.8% yield

[sunseeker]

Hi UB

I'll certainly look deeper into that one. 

ATB 

[sunseeker]

Crude ticking up
Sugar flying.

Since I reported in June...
Equal amounts of silver and sugar (in monetary terms) has been a successful strategy for me so far.
I spotted the relationship last year and implemented it this.
Rarely do you see both of them losing ground, and often they're both rising together.

E.g.
SUGA (ETF Sugar in $) Blue.
PHAG (ETF Silver in $) Red.




My portfolio as a whole is down so far this this week so I've no reason to be smug. I have limited those losses considerably though.

But if only I'd........... Never mind.

All you can do is beat the market. Only about 36% of fund managers beat their benchmark (some benchmarks are easier to beat than others). Most are just closet index trackers (slight under perform). 

My maxim is if you cant do considerably better yourself then just buy an Index Tracker Fund, or give up. It's not worth the effort unless you're a glutton for punishment that is.

ATB 

[onlooker]

Uboat’s September 8, 2011 quote:

An alternative income ETF  is the BMO Covered Call Canadian Banks ETF "ZWB"

http://www.theglobeandmail.com/globe-investor/investment-ideas/portfolio-strategy/market-storm-a-good-trial-for-new-etfs/article2152415/page2/

~    ~    ~

Hi Uboat,

Canadian banks may not be as safe as the rest of the world (or fellow Canucks) think they are?   

See:  http://www.zerohedge.com/news/next-domino-fall-canada

See:  http://www.greatponzi.com/articles/20090915-big5banks.html

See:  (latest update)  http://www.greatponzi.com/reports/cdn-credit/health-20110919.html

[Uboat]

Hi onlooker, nothing is safe in this market. Would you have believed a few days ago that gold would drop from 1900
to 1537?
ZWB has a yield of 10.7% and looks attractive once it gets over is MA50 on the chart.

[onlooker]

Hi Uboat, actually, from what I seen about how the POG moved in the past, I did anticipate that gold would drop from 1900.  True, I didn’t think it would go down to a low 1537.  However, I consider this time period to be a generous big dip due to the market manipulations, and I’m liking it!

So, I went back in to buy some more PM items.   

[sidewinder]

Sure has been quiet around here.  Guess everyone is sitting around slack jawed at this market.  it's gone from panic bearish to panic bullishness in less than 15 hours. 

I've never laughed at 15 minute charts more that the last two days.  This is total confusion and fear and is really something to watch.  My prediction is it will get far more intense over the next 3 years with periods of dullness luring the sheep closer to the slaughter house.   

Currencies, Gold, Silver, Bonds and futures traders are having a field day.  So many opportunities one hardly knows whether to shi* or go blind.  Just buy the dips and sell the tops.  Trend lines and value areas tell the story. 

Best of luck to y'all out there.  I'll say it again ... this is a traders market and not for widows and orphans ... you better bring your "A" game. 
 

[dananini]

For the third time since early august, i've done the SPY trade (incredibly easy money(( and i'm no Jesse Livermore))) between 1100-1200.Out today....This can't keep going on or nobody would work..Does anyone here even bother with the index trades nowadays?