OT: Lets talk about stocks (Part 3)

[QuebecPride]

Never forget about opportunity cost. It might or might not go back up, but while you're waiting, others are making moulah.

Personnally I'm ride or die 10% VCN 90% XAW in all my accounts except RESP where I have some PSA.to


Lots of recessions have + market returns. People lose their jobs but companies' financials can look great. It sucks but it's what it is.

Honestly index funds is the way to go, I just have fun with 10% of my PF. Having to mess around with that leaves the other 90% alone in index funds.

Anyone eyeballing the BTC spot ETF? How is that going to go down? If it's pegged to actual Bitcoin, what's the opening price going to be? Zero??

If you invest in Canada you can already buy BTC ETFs, I have BTCC personally. So for me, nothing new. Obviously that opens up bitcoin to a lot more investors, and more importantly, that allows traders to short Bitcoin. All else being equal, BTC price should rise if it's available to more investors, but that's probably already priced in. It's just a hunch, but I don't see volatility decreasing.

 

[Runner77]

Honestly index funds is the way to go, I just have fun with 10% of my PF. Having to mess around with that leaves the other 90% alone in index funds.



If you invest in Canada you can already buy BTC ETFs, I have BTCC personally. So for me, nothing new. Obviously that opens up bitcoin to a lot more investors, and more importantly, that allows traders to short Bitcoin. All else being equal, BTC price should rise if it's available to more investors, but that's probably already priced in. It's just a hunch, but I don't see volatility decreasing.

Why not invest in SCHD or VOO? Is there an advantage to buying Canadian ETFs?

 

[Runner77]

How about this approach?

 

[BehindTheTimes]

I continued to DCA into BTC/ETH and got some very cheap coins the last year. I will continue to DCA into BTC/ETH even at 56k and 3k.

 

[QuebecPride]

Why not invest in SCHD or VOO? Is there an advantage to buying Canadian ETFs?

If I was from the US i would invest in US ETFs. But since im from Canada I prefer canadian ETFS for tax purposes.

 

[Runner77]

If I was from the US i would invest in US ETFs. But since im from Canada I prefer canadian ETFS for tax purposes.

All I’ve been reading involves US ETFs. Maybe similar ETFs can be had in Canada but under a different designation — I’ll have to look into it further.

 

[tinyzombies]

Honestly index funds is the way to go, I just have fun with 10% of my PF. Having to mess around with that leaves the other 90% alone in index funds.



If you invest in Canada you can already buy BTC ETFs, I have BTCC personally. So for me, nothing new. Obviously that opens up bitcoin to a lot more investors, and more importantly, that allows traders to short Bitcoin. All else being equal, BTC price should rise if it's available to more investors, but that's probably already priced in. It's just a hunch, but I don't see volatility decreasing.

So instead of MARA in the US, it will now be this ETF like you said to scalp … they are talking about Bitcoin tripling from here at end of this potential bull market but that’s all hype I’m guessing.. if the US really has three rate cuts coming why would anyone plow into Bitcoin? But if this attracts more institutional investors…

I was toying was an options play for Bitcoin off of this next week

 

[Habs]

I continued to DCA into BTC/ETH and got some very cheap coins the last year. I will continue to DCA into BTC/ETH even at 56k and 3k.

that's what i do, stacking Sol, btc, eth and avax... and some xrp

 

[Runner77]

 

[tinyzombies]

It’s in the banks’ interest to take up a stance that inflation will decrease long-term so they can keep their interest rates high and keep raking in the money. They aren’t going to come out and say things are going to boom. Therefore, we are going to keep the interest rates high that would piss people off .

Any so-called expert you see on the economy is only speaking from their own interest. If you go back and look, it is always the case you have to do your own due diligence.

Seems to me they control so much of the volume the fight is not against them. It’s against your fellow small fish. and then cover your own butt against them

 

[LeHab]

Most were predicting a recession in USA. Economy remained relatively strong with magnificent 7 driving S&P 500.

 

[QuebecPride]

So instead of MARA in the US, it will now be this ETF like you said to scalp … they are talking about Bitcoin tripling from here at end of this potential bull market but that’s all hype I’m guessing.. if the US really has three rate cuts coming why would anyone plow into Bitcoin? But if this attracts more institutional investors…

I was toying was an options play for Bitcoin off of this next week

Low rates are good for 'growth' investments, so think companies having big increases of revenues, but no profits. Those companies (NASDAQ), correlate with the bitcoin in terms of volatility, so one would think it would be good for cryptos. But cryptos don't earn any many or revenues. There are some minor use cases for ETH et solana, but nothing really profitable yet, and all the attempts in scale have failed (Axie, FTX up to a certain point, etc.)

 

[QuebecPride]

Always take predictions with a grain of salt, especially when it comes to the economy and markets. It's really hard to predict.

 

[Stanley Cup]

All I’ve been reading involves US ETFs. Maybe similar ETFs can be had in Canada but under a different designation — I’ll have to look into it further.

Also be careful with the exchange rate risk. You might want to hedge your exposure to the US with the current USD/CAD running at above 1.30. Although admittedly I've beeb hedging for more than 5 years with the same reasoning.

 

[Runner77]

Also be careful with the exchange rate risk. You might want to hedge your exposure to the US with the current USD/CAD running at above 1.30. Although admittedly I've beeb hedging for more than 5 years with the same reasoning.

Thanks for that. The withholding tax on Canadians investing in US stocks is keeping me from going the US ETF route.

I’m wondering if there are Canadian ETFs that are similar to SCHD, VOO, etc.

 

[Runner77]

I’d like the idea of investing in these stocks but as an ETF:

13 Best Canadian Dividend Stocks For 2023 » Tawcan

Looking for best Canadian dividend stocks to purchase? Here are our top 10 best Canadian dividend stocks and reasons behind the selection.

www.tawcan.com

 

[Stanley Cup]

Thanks for that. The withholding tax on Canadians investing in US stocks is keeping me from going the US ETF route.

I’m wondering if there are Canadian ETFs that are similar to SCHD, VOO, etc.

Most large US ETF's are copied on the TSX. For instance, VOO is VFV.

Dividends are generally lower volatility assets. Financials are expected to perform well this year with the rates dropping. A common mistake is to buy stocks which pay out dividends at the expense of their growth and, in some cases, their financial health as a whole. What matters is the total return and that was highlighted by Ben Graham decades ago.

 

[covfefe]

It’s in the banks’ interest to take up a stance that inflation will decrease long-term so they can keep their interest rates high and keep raking in the money. They aren’t going to come out and say things are going to boom. Therefore, we are going to keep the interest rates high that would piss people off .

This is a complicated topic that very smart (and some very dumb) people dedicate careers to. I used to sit next to a guy who only covered 5 banks. That was his job for ~7 years straight: to know everything you can know about 5 banks.

Anyway. Benefits to banks in our current environment will flow depending on how their books are built - where they have allocated money, what they do to make money, and the growth and quality of their deposit base.

Those are some of the things a banking analyst would be learning about when determining whether banks will keep raking in the money.

But I do have to push back on your point. The long and short of the question you've implicitly raised just isn't as straightforward as you think. There's a reason multiple banks blew up last year across the US, EU, and EM.*

* because rising rates frequently hurt banks, who frequently do dumb things:

 

[The Real Timo]

Has anyone invested/been with Questrade RRSP portfolios? I know that I myself will not be consistent enough to self-manage anything. Questrade's RRSP investment are robo-managed and according to the internet consistent get adjusted based on whatever conditions/algorithms they have in place. They seem indeed to be much lower on fees. I just haven't found/met anyone who actually used QT's RRSP so a little hesitant to try them.

Thanks

 

[Runner77]

Most large US ETF's are copied on the TSX. For instance, VOO is VFV.

Dividends are generally lower volatility assets. Financials are expected to perform well this year with the rates dropping. A common mistake is to buy stocks which pay out dividends at the expense of their growth and, in some cases, their financial health as a whole. What matters is the total return and that was highlighted by Ben Graham decades ago.

I agree that excess focus on dividends at the expense of growth is a mistake. I’m looking for a mix. I saw these takes on Reddit, don’t know how accurate they are:

I invest with RBC.

There is a 15% withholding tax the US will charge if you the dividend is payed to your TFSA or to a non-registered account (normal investment account). In a non-registered account you can clain that 15% withheld on your taxes to the CRA, so you 'get it back' that way. In the TFSA, you cannot claim gains or losses so you lose that 15%.

In an RRSP however, the withholding tax is not levied on your US dividends. So, for US dividends I do not recommend holding them in a TFSA. But if you want to get into SCHD, you can open an RRSP or just a normal account and take the tax hit (you will still make money, just less).
…

Wait so VFV is a canadian etf that tracks that tracks the s&p 500. Are its dividends also subject to the 15% witholding tax despite it being a Canadian etf?

…

Although I'm very late to the party (was also looking for a better SCHD style ETF) yes, VFV.TO behaves much like SPY, however it is not CAD hedged. For an investment that is literally SPY in CAD, I believe you'll want VSP.TO. They track almost identically and any dividend/disbursement shouldn't be subject to the 15% withholding, at least on your end. It's definitely not SCHD though.

For all those looking for a CAD analog to SCHD, ZDY.TO is the best I've found, the dividend is roughly equivalent, holdings and weightings are similar, but the growth is just no where near the same and the expense ratio is 5x. Please let me know if you see something better.

Edit: Worth noting, a lot of these tickers are super thinly traded, so beware of that.

 

[Runner77]

They're great for people at the end of their career.

Personally I'm 30 and I invest in the two. The tax breaks are nice, but you're right that over 35 years that's not even 1% per year. I mostly invest in them because they give me exposure to private equity. A lot of companies don't go 'public' in the stock market until way later in their development, and most of the cash is usually made before the company goes public. That's why I want in on that juicy private market return.

Personnally, my expected return for FTQ is 5% and for CSN it's 4%, if you add the tax break it's closer to 6% and 5%.

We're really lucky in this province to be able to get exposure to private equity. In the US, you have to be a Multi-millionaire. You invest alongside the biggest names in Finance, Blackrock, Blackstone, CDPQ, CPP, Teacher's, CALPERS, etc.

IMO, the first 5000$ RRSP (REER) you invest yearly should go to FTQ/CSN, then you go into your discount brokerage account.

For those that are maxed out in RRSP, go take a look at Capital Régional Coopératif Desjardins, they also do private equity/venture capital. You get a 30% tax break on 3K per year.

TLRD, you invest in FTQ/CSN for diversification purposes and exposure to private markets in smaller companies.

I guess I’ll be looking at these as an option.

 

[The Real Timo]

I guess I’ll be looking at these as an option.

Running out places to invest all that money, Runner?

Feel free to invest into The Real Timo fund. It's for a great cause.

 

[Runner77]

Running out places to invest all that money, Runner?

Feel free to invest into The Real Timo fund. It's for a great cause.

Actually, I started a new job (which I wouldn’t have had to do if I had all the money being attributed to me).

I’m looking at an investment window of 5-10 years. Hopefully your fund is still around by then.

 

[Say Hey Kid]

This year the stocks I'm investing in are Anheuser-Busch, Campbell Soup, and Pfizer.

 

[The Real Timo]

Actually, I started a new job (which I wouldn’t have had to do if I had all the money being attributed to me).

I’m looking at an investment window of 5-10 years. Hopefully your fund is still around by then.

It's never too early to invest. Same goes for the rest of the gang. Put all your moneys into The Real Timo fund and returns will be great, when Habs win the cup. I'll take good care of it.