Stock blogs

21 October 2019

Stock blogs
  • Socially Responsible Investing: Why it matters?
    21 October 2019

    Deciding how you want to invest your money is often hard. You need to take many factors into consideration such as risk, returns, […]

    The post Socially Responsible Investing: Why it matters? appeared first on Trade Brains.

  • #12 Companies with Highest Share Price in India (Updated)
    21 October 2019

    #12 companies with highest share price in India (Updated- October 2019): Hi Investors. In this post, we are going to discuss the 12 […]

    The post #12 Companies with Highest Share Price in India (Updated) appeared first on Trade Brains.

  • 2 Banks That Could Make You Rich During a Recession
    21 October 2019

    If you were to believe what Bloomberg Intelligence is saying, investors should focus on the TSX, which ranks number one among the global stock markets. Based on the group’s equity scorecard, the time is right to invest in Canadian stocks heading into the end of the year.

    In the event of a recession, the Top Five Canadian banks could take a big hit. However, it could create an opportunity to buy shares of Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM).

    CIBC and Scotiabank are banking stalwarts that were able to endure recessions before. You can slowly switch to both stocks if the prices drop. Unlike in the U.S., however, Canada’s banking system was able to contain the risk of the financial sector contagion in the recent recession.

    Ever ready

    As early as April this year, Scotiabank CEO Brian Porter said the bank is not only “downturn ready” but can also mitigate the risks posed by the housing market. He was quoted as saying, “We believe there’s a lot of buffer in there for any significant downturn. There are always going to be those who take an opposing view, and we’ll prove them wrong in the long term.”

    Porter wants to stress that while Scotiabank’s mortgage portfolio is the largest asset class on its balance sheet, 42% are insured, and the loan-to-value ratio of the remaining accounts is about 54%. Thus, it provides a large buffer.

    The CEO went on to say that he’s not predicting a recession. Nonetheless, Scotiabank is downturn ready and very much comfortable with its capital, liquidity levels, and the quality of its assets.

    Strong as ever

    CIBC also held a shareholders’ meeting after the first quarter. The bank’s CEO Victor Dodig maintains the same view as his Scotiabank counterpart. He said that Canadian banks were well positioned to navigate any bumpy road ahead.

    Analysts monitoring CIBC are looking for signs of deteriorating loans knowing the bank’s mortgage growth or year-over-year gains through 2017 were at a high of 12%. However, the bank’s retiring CFO Kevin Glass was quick to say that CIBC is comfortable with its portfolio, and that they’re performing exceptionally well.

    Glass added that CIBC’s loan and deposit growth are solid, and they continue to be very well managed. So far this year, CIBC is up 13.5%.

    This bank stock also pays 5.23%, which the highest among the Big Five banks in Canada. That price could drop in a recession, however.

    However, once Canada recovers — and it most certainly will — bond yields will go up, and the financial sector performs well. If the financial stocks are doing well, the TSX will follow suit. The performance of bank stocks has an influence on the stock market in no small degree.

    Time your investment

    The intensifying trade disputes among major trading blocs could eventually lead to a recession. Is the banking sector ready if the economy were to fall into recession? The heads of Scotiabank and CIBC have spoken.

    Both banks are ready to weather an economic downturn. You can buy on the dip if the prices fall and realize gains when the stocks make a huge comeback.

    5 TSX Stocks for Building Wealth After 50

    BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

    So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

    You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

    Click Here For Your Free Report!

    More reading

    Fool contributor Christopher Liew has no position in any of the stocks mentioned. Bank of Nova Scotia is a recommendation of Stock Advisor Canada.

  • Canada Election: What to Expect for the TSX
    21 October 2019

    Happy election day! It has been a bumpy ride to the finish line, but we are finally here.

    This past weekend, I’d discussed two sectors I expect to get a boost no matter how this election shakes out. As we approach the vote count, it is almost a certainty that we are going to see a minority government in Canada. How should investors prepare for the reality that Canada is going to be moving forward with a weaker government?

    For one thing, we may see a dip in the Canadian dollar in the near term. The loonie has shown impressive strength in 2019. Canada’s currency has been in the top spot in the Group-of-10 currencies and has climbed nearly 4% against the U.S. dollar this year. The Bank of Canada has elected to hold firm on its benchmark rate in 2019, even in the face of broader economic headwinds. By contrast, the United States Federal Reserve has dropped its benchmark rate twice. Over the long haul, the Canadian dollar is still expected to exhibit strength into the new year.

    Let’s look at how Canada’s largest bank, Royal Bank (TSX:RY)(NYSE:RY), is sizing up the landscape ahead of the election. The stock has climbed 3.3% over the past three months.

    Analysts have advised investors not to get too excited about budget deficits. Canada still holds a triple-A rating, and none of the possible election outcomes portend a change that could pose a threat. “Both election policy platforms point to more fiscal stimulus and higher deficits ahead,” RBC Dominion Securities technical strategist George Davis said about the platforms of the two leading parties, the Liberals and Conservatives. “The projected deficits do not represent a major departure from the 1% of nominal GDP anticipated in the next few years.”

    Nathan Janzen and Josh Nye, senior economists at Royal Bank, have expressed confidence in Canada’s short-term growth prospects regardless of how the election shakes out. “From a purely Canadian economic growth perspective, the risks are probably tilted to a slightly larger support to near-term growth coming from the government sector,” they said in a recent report.

    Another RBC Dominion Securities report, penned by Canadian rates strategy head Mark Chandler and rates strategist Simon Deeley, released their fiscal forecast. In the event of a Liberal/NDP/Green coalition, the report “expect(s) deficits in the range of $21 billion to $27 billion through 2023-24.” In the event of a Conservative victory, the report suggests that the deficit would be roughly $16 billion smaller over a four-year stretch.

    How will the TSX index react?

    The S&P/TSX Composite Index fell 49 points on Friday, October 18. Investors may want to anticipate some temporary weakness in the event of a minority government, but this should be short-lived. Gains on the TSX will continue to be capped by the lagging energy sector. Instead of tracking the main index, risk-averse investors should pursue a stable blue chip like Royal Bank.

    Investors should keep a close watch on the election results today. Later in the week, we will evaluate how investors should move forward once the framework for the new government has taken shape.

    Free investor brief: Our 3 top SELL recommendations for 2019

    Just one ticking time bomb in your portfolio can set you back months – or years – when it comes to achieving your financial goals. There’s almost nothing worse than watching your hard-earned nest egg dwindle!

    That’s why The Motley Fool Canada’s analyst team has put together this FREE investor brief, including the names and tickers of 3 TSX stocks they believe are set to LOSE you money.

    Stock #1 is a household name – a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company’s prospects will improve (especially after one more government bailout).

    Still, our analysts rate this company a firm SELL.

    Don’t miss out. Click here to see all three names right now.

    More reading

    Fool contributor Ambrose O’Callaghan owns shares of ROYAL BANK OF CANADA.

  • Add This Defensive Bank to Your Portfolio for 2020
    21 October 2019

    Canada’s big banks remain attractive long-term options for nearly any well-balanced portfolio. Apart from the stable nature of Canada’s financial system, the big banks are diversified into various markets around the world, making them international investment options worthy of consideration.

    Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) has long been viewed as Canada’s most international bank, owing to its sprawling portfolio of international holdings. That title has recently come into question, as the bank made several announcements over the past few months to reduce that international footprint.

    What makes Bank of Nova Scotia so international?

    To answer that question, let’s take a moment to talk about the Pacific Alliance. That’s the name given to a trade bloc that consists of the nations of Mexico, Chile, Columbia, and Peru. Together, those four nations are working towards eliminating all tariffs and fostering better trade relations. When Bank of Nova Scotia began operations in each of those nations, it effectively became the preferred bank of the trade bloc.

    Strong growth and long-term potential also led Bank of Nova Scotia to seek out acquisition targets within the region, such as BBVA Chile, which, upon acquisition, made Bank of Nova Scotia one of the largest lenders in Chile.

    Bank of Nova Scotia’s focus on the Pacific Alliance has also meant that the bank has backed away from other international markets. By way of example, in the most recent quarter Bank of Nova Scotia announced that it was divesting its operations in both Puerto Rico and the U.S. Virgin Islands as well as reducing its investment in Thailand.

    That level of diversification into growing markets furthers Bank of Nova Scotia’s appeal as a defensive investment, particularly as there are increasing signs of a market slowdown emerging over the next year.

    Quarterly results

    In the most recent quarter, Bank of Nova Scotia reported an adjusted net income of $2,455 million, representing a gain of $196 million over the same period last year. On a per-share basis, the bank earned $1.88 per adjusted diluted share, beating the same period last year by $0.12 per share.

    Despite announcing its new smaller international footprint, Bank of Nova Scotia’s international segment still managed to provide double-digit earnings growth with the Pacific Alliance nations leading the charge. Adjusted net income from the international segment came in at $815 million, up 14% over the same period last year. Higher interest rates and loan growth across the region were primary drivers in that growth.

    That’s not to say that the Canadian banking segment didn’t have a good quarter. Net income of $1,160 from the segment reflected a solid 3% gain over the same period last year, fueled by deposits and solid asset growth.

    The strong results also led to the bank hiking its quarterly dividend a further 3%, resulting in an attractive yield of 4.75%, handily making it an attractive option for income-seeking investors.

    Final thoughts

    In my opinion, Bank of Nova Scotia remains a strong long-term option for nearly any portfolio. Apart from offering investors an attractive dividend, the bank has a well-diversified portfolio of investments that, unlike its big bank peers, is not fully reliant on the increasingly volatile U.S. market.

    5 TSX Stocks for Building Wealth After 50

    BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

    So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

    You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.


    Click Here For Your Free Report!

    More reading

    Fool contributor Demetris Afxentiou owns shares of Bank of Nova Scotia. Bank of Nova Scotia is a recommendation of Stock Advisor Canada.

  • A Recession-Proof Stock Being Thrown in the Bargain Bin!
    21 October 2019

    Shopping mall food courts are convenient for people from all walks of life to grab a quick bite, to rest and refuel after doing errands or shopping, or to hang out with friends while saving some money, as you don’t need to pay tips.

    Most of MTY Food Group’s (TSX:MTY) franchised or operated locations are in the food courts of shopping malls in North America. Over the years, it has acquired or developed a variety of brands from North American to Chinese, Japanese, Korean, Italian, Middle Eastern, etc. Currently, MTY Food Group has about 80 banners, including recent acquisitions of Papa Murphy’s, Allô! Mon Coco, and Yuzu Sushi, across 7,441 locations, of which 97.8% are franchised.

    MTY data by YCharts. Comparing the 10-year price changes of MTY and the Canadian and U.S. stock markets.

    In the first nine months of the year, MTY Food Group’s system sales and revenues climbed 25% and 35%, respectively, to nearly $2.6 billion and over $400 million. However, normalized EBITDA only increased by 16% to more than $108 million with a normalized EBITDA margin of 27.1%, down 4.5% from the same period a year ago. Free cash flow also increased by 16% to more than $77 million, while same-store sales were flat.

    Concerns about lower EBITDA margins and flat growth have caused the stock to fall 24% in the last year. This has finally made the recession-proof stock more attractive for investors.

    Recession proof

    As mentioned earlier, eating at the food court is a good way to save money when you need to eat out. That goes for workers, students, or shoppers alike. That’s why MTY Food Group’s earnings and cash flows are recession proof. In fact, in the last recession, the company’s earnings per share actually increased, suggesting that its profitability may be recession proof. Its free cash flow generation also showed resilience in the recession.

    Valuation

    It’s an excellent opportunity to gobble up MTY shares today. The stock is trading at under 17 times earnings at $52 per share as of writing, which is a decent valuation to buy the quality dividend stock that’s focused on growth. The analysts’ average 12-month price target indicates more than 21% upside potential — again, this suggests value is up for grabs.

    Dividend

    MTY provides a small yield of about 1.3%, but it offers growth potential, including the above-average growth of its dividend. It’s almost doubled its dividend in the last five years, and it last hiked its dividend per share by 10% in January.

    Its payout ratio is estimated to be roughly 21% this year’s earnings and about 16% of its free cash flow. So, there’s a huge margin of safety for its dividend and lots of room to increase the dividend in the future.

    Management

    Eric Lefebvre became CEO when Stanley Ma stepped down from the position in November 2018. Lefebvre has been with the company for 10 years, including being CFO from 2012 to 2018. So, he knows the industry and company very well.

    Foolish takeaway

    MTY Food Group is a great recession-proof business that’s trading at a good value. It’s now a fabulous buy for long-term investing.

    5 TSX Stocks for Building Wealth After 50

    BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

    So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

    You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

    Click Here For Your Free Report!

    More reading

    Fool contributor Kay Ng has no position in any of the stocks mentioned. MTY is a recommendation of Stock Advisor Canada.

  • TFSA Investors: These 3 Bank Stocks Are Too Cheap to Ignore!
    21 October 2019

    Banks are some of the cheapest stocks on the TSX. With P/E ratios hovering between 10 and 12, they’re far less expensive than most classes of equities. Unlike cheap stocks in the energy sector, the banks are also growing (albeit slowly), which means they can continue to pay or even raise dividends. Right now, any of the Big Six bank stocks would be cheaper than the average TSX stock. However, there are a few banks that stand out as being inexpensive, even for this very modestly valued sector. The following are three of the cheapest.

    Canadian Imperial Bank of Commerce

    Canadian Imperial Bank of Commerce is the cheapest Big Six bank, with a P/E ratio of just 9.74. As a largely domestic-focused bank, it has attracted some criticism for its slow growth prospects and exposure to deteriorating consumer credit.

    It is true that CIBC is fairly domestic-oriented for the time being. However, the bank has ambitions to expand into foreign markets, and we’ve seen some encouraging signs on that front. CIBC’s U.S. division is currently small, but is growing every quarter. According to Fool contributor Chris Liew, the bank is aiming to have up to 25% of its earnings coming from foreign countries in the future. If that comes to pass, it could generate significant growth for the company, as we saw with TD’s foray into the States.

    Laurentian Bank

    Laurentian Bank of Canada is a small Quebec bank that does business mainly in its home province.

    The bank’s stock started falling last year after it was discovered that it had issued hundreds of faulty mortgages. The bank was forced to buy back many of the mortgages it had issued, at a cost of $400 million. That’s a big hit to the balance sheet. It was followed up by a series of earnings misses in 2019, with net income down 33% in the first quarter and 13% in the third. In more encouraging news, Laurentian Bank recently had major success in a collective bargaining agreement that granted it many benefits, so the company may see reduced costs in the years ahead. However, this company’s earnings trend has undeniably been negative this year, so proceed with caution.

    VersaBank

    VersaBank is a small bank that touts itself as Canada’s only 100% online financial institution. With no branches, it’s a much leaner operation than your average big bank. And, as a small bank, it has much more room to grow. Year to date, the bank has increased its net income by 15%. That’s a much higher growth rate than you’ll get from any of the Big Six — even TD, with its mighty U.S. retail business.

    Even with all this growth, VB only trades at 7.98 times earnings. That’s mighty cheap for a company growing at 15% year-over-year. While the company’s most recent quarter was weaker than the previous two, the long-term earnings trend is extremely encouraging, suggesting that this stock is a bargain relative to future cash flows.

    5 TSX Stocks for Building Wealth After 50

    BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

    So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

    You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

    Click Here For Your Free Report!

    More reading

    Fool contributor Andrew Button owns shares of TORONTO-DOMINION BANK.

  • Retirees: 1 Stock Is All You Need for Protection in a Down Market
    21 October 2019

    How worrisome is a down market to retirees with stock holdings? I suppose the fear is indescribable. Your main concern is always the depletion of your financial resources during retirement. If your stocks tanks, your well of sustenance might dry up. Your chosen stocks should protect you against this scenario.

    Some sectors are known to be recession-proof; one of which is the utility sector. But if you are choosing to invest in the industry, pick the company that is the most economically resistant to the effects of a declining market.

    It might be monotonous to hear this name over and over every time there is a threat of recession. However, Fortis (TSX:FTS)(NYSE:FTS) is the utility stock, if not the only stock you need to protect you from a down market.

    Strong and steadfast

    Investors with short-term financial goals are not fond of utility stocks. They find the stocks to be less volatile, which doesn’t allow for earning quick bucks. Retirees, however, need safe bets during a down market. Fortis is a low-risk investment offering overall safety of the investment.

    The word fortis in Latin means strong and steadfast. As an electric and gas company with regulated utilities across Canada, the company lives up to its name. This $23.93 billion company is a retiree’s dream investment. Fortis carries a 45-year streak of dividend increases, which is very reassuring.

    The sustainability of dividends is sacred to retirees. You wouldn’t mind owning a dull stock that is predictable in paying dividends. It also allows your investment to grow over time. Those are the compelling reasons to park your money in Fortis.

    The Fortis growth model

    Fortis was born in 1987 following the 1966 merger of St. John’s Electric Company with the Newfoundland Light and Power Company Ltd., Union Electric, and United Towns Electric. Since then, the resulting company went on to make several acquisitions.

    Using the federation-style approach, Fortis was able to add subsidiaries to its expanding network. In the Fortis model, the subsidiaries operate autonomously. Soon after, the company was delivering consistent earnings growth. The model is the primary reason for the 45-year streak of dividend increases.

    While companies in other sectors were wallowing in negative territory and sometimes falling by double digits, Fortis continues to float and remain relatively stable.

    Because of its strategic acquisitions that are all contributing to the growth strategy, Fortis has become a solid and formidable electric and gas utility company. At the time of its formation in 1987, assets were barely $390 million. Today, 32 years later, its asset base is more than $50 billion.

    Powering ahead

    Fortis is a class of its own. You would be investing in 10 utility operations of one strong company. The company derives 100% of income from regulated and long-term contracted operations that have inflationary provisions to shield it from commodity price fluctuations.

    With a safe and sound 3.47% dividend, you will be powering up your retirement savings during a down market. Meanwhile, Fortis will continue to power ahead to deliver the electricity and gas needs of Canada, the U.S., and the Caribbean. Everyone is happy with the dependable stock, and so should you be.

    5 TSX Stocks for Building Wealth After 50

    BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

    So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

    You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

    Click Here For Your Free Report!

    More reading

    Fool contributor Christopher Liew has no position in any of the stocks mentioned.

  • After a 26% Plunge, Is This Stock a Buy?
    21 October 2019

    Friday was not a good day for Gildan Activewear (TSX:GIL)(NYSE:GIL) shareholders. Shares plummeted 26%, falling $11.96 to close at $34.53 each.

    The reason for the fall was Gildan cutting guidance for the rest of 2019, telling investors it saw weakness in its imprintables market, which supplies branded clothing for businesses. The company expected low single-digit increases in that part of the market but instead is seeing a decrease in sales. A more general decrease in sales in both Europe and China further added to management’s bearish sentiment.

    The company also pre-released third-quarter earnings, which are expected to check in at US$0.51 per share. That represents a 7% decline from the same quarter last year. Sales also declined, dipping 2% for the quarter.

    Full-year guidance is now for earnings in the US$1.50-US$1.55 per share range, down significantly from earlier expectations of US$1.80-US$1.85 per share. Free cash flow, meanwhile, is projected to be impacted even more, falling from an expected range of US$300-US$350 million to between US$200 and US$250 million.

    It’s pretty easy to see why investors were so freaked out about the company’s guidance cut. Updated guidance represents a significant haircut compared to previous expectations.

    Gildan has quietly been one of the TSX Composite’s big long-term winners. Should investors who missed out look at loading up today? Or was Friday’s bad news just a preview of more pain to come? Let’s take a closer look.

    Recent history

    I remember last July when Gildan last released lacklustre earnings. Shares tanked more than 10%, eventually closing at under $35 for the first time in more than a year. I was interested in adding the company to my own portfolio.

    Less than a month later, shares had rebounded, and then some. The stock was trading at more than $40 per share.

    It isn’t the first time Gildan shares have reacted this way after a big decline. If you look at the long-term chart, any big sell-offs have been short-lived, with shares always recovering.

    Longer-term results, meanwhile, have been nothing short of stunning. Even after the massive decline on Friday, Gildan has still compounded investor money at a rate of 14.5% annually over the last decade. That’s enough to turn a $10,000 investment made back in October 2009 into something worth $38,730 today, assuming dividends were reinvested.

    The future

    The main reason why Gildan shares have performed so well over the last decade is the company has a really smart business plan. Yes, manufacturing t-shirts, socks, and other pieces of clothing is a competitive business, but Gildan does a nice job competing by keeping a relentless eye on costs and by using facilities in Central America to manufacture. This cuts down shipping costs.

    Financial results are also better than many investors first assume. The company regularly posts 15% operating margins, with improvements in the manufacturing process helping margins creep slowly higher. It also posts good returns on invested capital and returns on equity, two things every investor should be looking for.

    In short, Gildan is a better business than most would assume at first glance.

    Gildan is also giving back to shareholders in a big way. The company spent more than US$1 billion from 2016 to 2018 buying back shares and hiked its dividend by 20% per year from 2013 to 2018. Shares currently yield a hair over 2%.

    The bottom line 

    Gildan’s management has done an excellent job positioning the company for long-term success. That is proven by the stock’s terrific total return over the last decade.

    Will the next decade be as profitable? It’s hard to say, but I like Gildan’s chances. There’s still plenty of organic growth potential, and technological improvements should continue to protect margins. The company has the potential to make acquisitions, too.

    It looks to me like today would be a terrific long-term entry point. But don’t delay. Gildan shares don’t stay cheap for long.

    This tiny TSX stock could be the next Shopify

    One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…

    Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!

    Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

    Click here to discover how!

    More reading

    Fool contributor Nelson Smith has no position in any of the stocks mentioned. Gildan is a recommendation of Stock Advisor Canada.

  • TFSA Investors: 1 Enormous Mistake to Avoid in a Recession!
    21 October 2019

    Canadians can reap the benefits of a Tax-Free Savings Account (TFSA). As an investor, you can invest in several different businesses and save on potentially hundreds of thousands of dollars you might need to pay otherwise over your lifetime. As a result, TFSAs come in handy for a variety of savings goals.

    As a TFSA investor, maximizing your TFSA has to be your top priority. You can withdraw money from the account without the deduction of penalties, which you cannot in a Registered Retirement Savings Plan.  Still, you should strive to keep your TFSA maxed out if you have the means to achieve this.

    We are facing uncertain economic times right now. Investors are panicking about what to do in case a recession hits. In times of economic depression, there are several mistakes that TFSA investors make. From trading way too much instead of buying and holding to taking on too much risk, there are several potential problems investors can cause themselves.

    Of recessions and high-risk stocks

    Investing in high-risk companies is the biggest mistake investors can make, especially in times of recession.

    Shares of legal marijuana have made early investors wealthy. It is tempting to keep high-risk and high-reward stocks in your TFSA. The approach can potentially save you a lot of money through the account if the company were to multiply several times over.

    Nonetheless, risking a significant portion of your contribution is not the right approach, regardless of the potential outcome from investing in stocks like Canopy Growth (TSX:WEED)(NYSE:CGC).

    Your goal should be to buy top-quality, long-term, and dividend-paying stocks. Acquiring top stocks for your TFSA and holding them for the long haul is an ideal strategy. The compound growth, thanks to the dividends along with zero taxes, can create a lucrative snowball effect for your TFSA. Canopy shows us exactly why it is unwise to invest in a high-risk stock.

    A massive drop in share prices

    Calling last week’s sell-off of Canopy stocks “disastrous” is an understatement. In the space of just a few days, Canopy stock has fallen over 15.7% to drop to $25.67 per share at the time of writing. Canopy stock was trading at a massive $73.75 just a year ago. A drop of 65.19% in a year represents significant volatility in the capital.

    The entire cannabis sector keeps taking hits from bad news. Other companies like Hexo, Aphria, and even Village Farms are struggling. Possibly the worst news for the cannabis sector came last Tuesday when Nevada-based hemp grower Go Farm Hemp sued Canopy.

    Canopy sued the U.S. outfit as an answer to the lawsuit. The full story between the two companies is yet to emerge. Investors do not need to pay a lot of attention to the case right now. The main thing to focus on is that cannabis stocks are making it to the headlines for all the wrong reasons at a time when the industry needs a boost.

    Foolish takeaway

    I believe that any smart investor should not even bother to poke at the likes of Canopy or any other weed stock right now. The industry is going through turmoil right now ahead of Cannabis 2.0, and the situation points towards a potentially more profound decline.

    My advice is to try and stick to top-quality dividend-paying stocks to make the most of your TFSA ahead of a recession.

    One tiny small-cap stock to bet on ahead of Cannabis 2.0 on October 17th…

    The first wave of cannabis legalization minted millionaires out of everyday investors, and it might be about to happen again.

    Because when edibles are legalized in Canada on October 17th, experts project a new $2.7 BILLION market will be born.

    Our last legalization stock pick is already up 1,211%, and now we’re recommending one tiny small-cap stock before Cannabis 2.0.

    This could be our next +1,000% winner in the cannabis space.

    Hurry, the second wave of cannabis legalization is about to hit and this stock could skyrocket.

    Click here to learn more!

    More reading

    Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of Village Farms International, Inc. Village Farms is a recommendation of Hidden Gems Canada.

No events
October 2019
M T W T F S S
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31

Blog Calendar - Finance

« October 2019 »
Mon Tue Wed Thu Fri Sat Sun
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Personal Finance

21 October 2019

Personal Finance
  • 2-Minute Money Manager: Should I Pay Off My Mortgage Before Retirement?
    21 October 2019

    Welcome to the “2-Minute Money Manager,” a short video feature answering money questions submitted by readers and viewers. Today’s question is about mortgages; specifically, whether you should pay off your mortgage before you retire. Watch the following video, and you’ll pick up some valuable info. Or, if you prefer, scroll down to read the full transcript and find out what...

  • Fidelity 401k rollover Plan Administrator?
    21 October 2019

    I will be leaving my job next week and am planning on rolling my 401k into an IRA. On the online rollover form, Fidelity is asking who my plan administrator is. My employer is currently using Paychex. Is the plan administrator "Paychex" or the name of my current employer? Thanks in advance for any help!

    submitted by /u/vankalen
    [visit reddit] [comments]
  • Best place for emergency savings?
    21 October 2019

    Trying to help a sibling. They have 6 months of expenses (~$20k) sitting in a savings account getting 1.80%. If this is something they hope to never touch, but need liquid in case they have to, is there a better place for it?

    Looks like money market rates aren’t any better right now. My patient could help in the short term if poop hits the fan, but they and their spouse have very stable jobs.

    submitted by /u/youalreadyhadlogs
    [visit reddit] [comments]
  • How to prepare for a recession?
    21 October 2019

    Between trade wars with China, and economic slowdowns across the board, what is the best way to prepare for an economic recession/depression?

    submitted by /u/akschurman
    [visit reddit] [comments]
  • Should I accept this position?
    21 October 2019

    So I recently accepted a position in Connecticut that offered 65k per year with benefits (health insurance, 401k and PTO days. I checked the living cost in CT and it’s pretty high. They also have high tax rates.

    I’m from out of state and I was primarily looking for a salary between 75-85k per year in the big cities. Considering CT isn’t a big city, how decent would 65k be to live on? I’m a single person with 20k in student debt. I have about 2 years of professional experience.

    submitted by /u/retronoir
    [visit reddit] [comments]
  • Throwback Tuesday QoD: What is the most popular shopping website for teens?
    21 October 2019

    We last asked this question back in November of 2017 so it was time to check back with the Piper Jaffray Taking Stock with Teens Survey 2019 to see what had changed. 

    Answer: Amazon (and it's not even close!)

    Questions:

    • Do you shop online at all? If so, what is your favorite website?
    • How much of an impact does social media have with your online purchases? For example, are there influencers on Instagram that pitch products they like that you purchase because of their endorsement?
    • Are there items that you would prefer to purchase in-store vs. online? Explain. 
    • Amazon has such a commanding lead over other websites. Why do you think so many teens choose Amazon for online shopping?
  • NGPF Got Finance? Survey: 4 out of 5 Teachers Seeing Enrollment Gains in their Personal Finance Elective Classes
    21 October 2019

    Background: Earlier this year, NGPF released its Access to Financial Education report which reviewed over 10,000 public high school course catalogs and found that 1 in 6 students attend a school that ensures every student graduates having taken a semester-long personal finance course. 

    NGPF’s Got Finance? Survey received responses from 459 teachers in its network in September/October of 2019. The survey sought to understand enrollment trends in personal finance education in high schools across the United States. The summary data provided below indicates dramatic growth in enrollment in elective personal finance courses. 

    Highlights

    • 459 high school educators who teach personal finance as an elective responded to the Got Finance? survey administered by NGPF.
    •  Of those who responded:
      • 58% indicated that MORE students were enrolled in personal finance classes at their school (median increase of 25%)
      • 17% indicated that FEWER students were enrolled in personal finance classes at their school (median decrease of 20%)
      • 24% did not know whether there was an increase or decrease
    • In terms of trends, it’s certainly very positive that 77% of teachers saw an increase in enrollment in their personal finance course, while 23% reported a decline. 
    • The reasons for these increases stem from many factors that begin and end with teachers. Confident and highly qualified teachers delivering a quality curriculum to students begin this virtuous cycle. These students immediately see the value of the course,  then rave about it to anyone who will listen (fellow students, parents, admins and guidance counselors). This increased demand leads to the opening up of additional sections of the course. 

    Reasons for Increases in Enrollment

    There were myriad drivers behind the growth in enrollment in personal finance electives, including:

    • Better marketing of the course
      • “A name change for the course from Personal Finance to Career and Financial Management”
      • “More students interested in the updated description in the class catalog.”
    • Advocating to parents
      • “Advocating directly to parents by establishing a parent newsletter.”
    • Schedule changes
      • “I asked for the master schedule to be changed so more students could take it.”
    • Dual credit with community college
      • “Course is being offered as a dual credit class with a partnership with local Community College.”
    • Awesome teaching
      • “The increase is due to the teacher responsible for the standalone.  Students love him and he's really engaging.”
    • Student word of mouth
      • “The increase in enrollment is from word of mouth from other students. They share how beneficial this course is and how valuable the information is that they learn.”
    • Alternative math course for students
      • “Used as an alternative to Algebra II and as an elective that a lot of parents wanted. I have 2 classes and they are at capacity. School is talking about increasing amount of personal finance next year because of demand.”
      • “Math requirements changed to allow PF to count as a third year math credit.”
    • Availability of turnkey curriculum
      • “I started teaching the course so it is new to our school. Thanks to NGPF I have the resources to finally be able to offer this course.”
    • Addition of higher level (or Honors) course
      • “We added a Personal Finance 2 (second level) course for more in-depth material.”
    • Student marketing
      • “Students from last year went to 11th grade English classes and did a 5 minute presentation on what the class was all about, what they learned, and why it is so important to learn the curriculum for the real world.”
    • Teacher advocacy
      • “I asked my administration to allow me to add a personal finance elective, and they agreed.”
    • Supportive administration and guidance counselors
      • “Shared view between administration and educators that it is needed.”
      • “Our business department is very passionate about teaching financial literacy to our student body. We have met with administration and counselors to gain their support in having students sign up for our personal finance class. Also, we do a lot of advertising when it's time for students to pick classes for the next school year.”
    • Change in CTE Pathways
      • “We changed our CTE pathways.  We only had one section of it last year and this year we offer around 16 sections of it.”

    Reasons for Decline in Enrollment

    • Legislation in Florida
      • “Florida took Fin Lit out of the Econ requirement class and made it a stand alone Elective, so now instead of all students taking  Fin Lit, only a small portion do. The Econ requirement should be replaced with the Fin Lit as a requirement instead.”
    • Budget cuts
      • “Need to get my administration and math dept head on board.  Counseling dept feels we should have more than one section. Due to budget cuts that class was the first to go.”
    • Support from school board/admin
      • “School board/District admin to value financial education. 28 years ago when I started teaching we had 5 full time Business teachers.  Now I am the only one and that being only only 2 "business" courses; Personal Finance in the Fall and "Intro to business" in the Spring...sad.”
    • Lack of support from guidance counselors
      • “Scheduling of students into the class. Our counsellors are reluctant to convince students of the overwhelming value of this course for some reason.”
    • Emphasis on A.P. courses rather than electives
      • “More push for students to take the elective course.  I feel like our school pushes AP classes most and electives do not get as much attention.”
    • Scheduling issue
      • “Really it is just a scheduling issue, if this course was required for graduation I am sure it would not be an issue. I also said that because I had 75-90 kids say they wanted it. Next semester I will be teaching about 40 students. It is well received by the students and parents, just not sure how to make it a graduation requirement.”

    ---------------

    Passionate about financial education? Apply for NGPF's Gold Standard Challenge with opportunity to earn a $10,000 grant and a trip to San Francisco for the Changemakers Summit. Applicaation deadline is November 1st and details here. 

  • TEACHER TIP - CALCULATE: High Rate vs Debt Snowball
    21 October 2019

    Amanda Volz brings you a Teacher Tip video on the activity CALCULATE: High Rate vs Debt Snowball. This activity uses an online calculator to pay off a hypothetical portfolio of debts using both the High Rate method and the Debt Snowball Method. Amanda provides some tips and implementation ideas for how you can use this activity in your classroom!
    For all of NGPF's Managing Credit resources, visit the MANAGING CREDIT unit page!

  • SoFi Money Review: Cash Management Account with a $50 Bonus
    21 October 2019

    SoFi made its name as a very fun student loan refinancing company. Why were they fun? Not only did they offer low rates on student loan refinancing, they held events throughout the year and even offered career services.

    They would hold education events that included networking events, happy hours, and other similar “experiences.” This helped them build one of the largest student loan refinance companies in the United States with over 800,000 members.

    It was a totally different approach to student loans. Up until then, most loan providers competed on price (interest rate on the loan). And while SoFi competed on price too, they also offered these value-added bonuses that helped people fall in love with them.

    They have since branched out to several other products including a cash management account called SoFi Money.

    SoFi Money has a referral program where you can get $50 if you open an account and deposit at least $100. Click here to find out more!
    What Is SoFi Money? Is SoFi Money a Bank?

    Not technically. SoFi Money is a “cash management account” and your funds are held at one of their partner banks. This is very similar to Betterment Everyday and other similar products.

    Technically, it's a brokerage account. It's covered by SIPC insurance until it is transferred to one of their partner banks.

    There, your funds are FDIC insured up to $1,500,000 since SoFi partners with six banks, each with $250,000 of FDIC insurance (the standard amount). You manage your account through SoFi but the physical dollars and cents are held at a partner bank. One of the first partner banks was Wilmington Savings Fund Society, FDIC #17838.

    This means that technically your funds are not FDIC insured until they get transferred to a partner bank. It's a minor difference but one that is worth noting. Personally, I don't see it as a big issue but you have to know there is a lag between deposit and FDIC insurance that doesn't exist with a bank.

    SoFi Money Cash Management Account

    There is just one product and it effectively acts as checking and savings account rolled into one. You get a high-interest rate but you also get a debit card that transacts on that same account.

    There are no account fees and no account minimum. There is no monthly maintenance fee, no non-sufficient funds fee, and no overdraft fees. You can get personal checks for free as well as bill pay and transfers. If you use the debit card outside of the United States, they will not charge a foreign transaction fee either (they will pass on the 1% fee that Visa charges).

    There are also no ATM fees – they will reimburse you any ATM fees as long you use an ATM with a Visa®, Plus®, or NYCE® logo.

    Finally, you get a membership to SoFi which means you can attend those events I talked about in the opening section. While this isn't an exclusive membership, it is a nice little perk you can take advantage of as long as you live near where they hold these events.

    Vaults

    Vaults are like sub-accounts in your Sofi Money account. They're not separate accounts but ways for you to think about various savings goals.

    So you can set a Vault for an emergency fund, to save for your first house, or buy a new car. They all earn the same interest rate.

    You can have up to 20 vaults at one time and there are no additional fees or minimums on vaults.

    The only thing you can't do is spend money from a Vault. You can only spend it from your main Sofi Money account. If you want to spend it, you have to transfer it from the Vault to the main account.

    In the event your main account runs out of money, you can set up “reserve spending” so that money in your vault can be used to cover transactions in your main account. If you set this up, it'll move money so transactions are approved. If you don't, the transaction won't be approved.

    There are rare cases when they will override reserve spending to move money in the case of:

    • Checks and ACHs deposited into your spending balance that are returned or reversed
    • Debit card purchases that pre-authorize a lower amount than the final transaction amount (examples include gas station purchases and restaurant tips).

    Finally, if you close a vault, that money goes directly into your main spending balance.

    Account Opening Walkthrough

    Opening an account takes just 7-8 minutes.

    The first page is to register for Sofi – name, email, password.

    Then, you pick whether to open an individual account or a joint account.

    To keep things simple, I opened an individual account.

    Next, you have to enter your permanent address. They use a tool that helps populate the address, similar to how Google Maps auto-populates as you type, so it's super fast. Then you enter a phone number that they use for two-factor authentication.

    Finally, you have to confirm it's you with your date of birth and Social Security Number:

    (there's one more regulatory page asking questions like whether you're an officer of a publicly-traded company, FINRA, etc.)

    Then, boom – you'll probably be confirmed!

    Linking up an account is super easy too, just have to log in with your credentials.


    (the image shows Ally Bank but I opted to link up Bank of America)

    It takes just a couple days for the transfer to complete, a typical amount of time for an ACH transfer.

    And just like that, we're off and running.

    The Money Welcome Bonus of $50 is the referral bonus they offer if you open an account using an existing member's referral link and deposit at least $100.

    Any Catches?

    SoFi limits you to a certain number of transactions to prevent fraud.

    For peer to peer withdrawals, you are limited to $250 per day and $3,000 per month. Bill pay is limited to $10,000 per transaction.

    Through ATM or Point of Sale Cash Withdrawal, you are limited to $610 (Ally Bank limits you to $1000 per day). Over the counter cash withdrawal is limited to $150 and your Point of Sale spend limit is $3,000. Finally, you're limited to 12 point of sale transactions per day.

    These are not onerous limits but there may be times when you will run into them.

    Lastly, no wire transfers.

    SoFi Money $50 Promotion

    Want to get $50 to open an account? SoFi Money will give you $50 if you open your account and fund it with at least a hundred bucks.

    It's just that simple. And once you're done, you can refer your friends and give them $50 a pop too. Everyone wins!

    Learn more about SoFi Money

    The post SoFi Money Review: Cash Management Account with a $50 Bonus appeared first on Best Wallet Hacks.

  • Should We Soak the Rich Into Oblivion?
    21 October 2019

    In 1971 the band Ten Years After released their only hit, I’d Love to Change the World. The song was a protest of the Vietnam War, but also a lament on all the ills that had befallen society. Many took exception to the lyrics: Tax the rich, feed the poor ‘Til there are no rich no more? As we head into another presidential election season here in the states we are hearing more about...

    Source


Share with friendsMOD_ITPSOCIALBUTTONS_PRINT_THIS_PAGE