Richard Croft
Member since: Dec '04
President at
R.N. Croft Financial Group Inc.
R.N. Croft Financial Group Inc.
1053 Opinions
Latest Top Picks
(A Top Pick Aug 02/18, Up 8%)A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48 A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48. He's holding onto this. Apple is going well and the CEO has the ear of Trump.
(A Top Pick Aug 02/18, Down 6%)A covered call. Bought at $338.50, sold 360 at $(21.50), net cost $317, now $210.48. The streaming landscape has changed with more competitors entering this sector. Netflix is spending a whack of money on new shows. They could have a rough road.
(A Top Pick Aug 02/18, Up 7%) He's holding onto this. It benefits from momentum stocks like Shopify and Square.
Covered call: buy at $30.70, sell January 30 calls at $4.30, net per share $26.40. After taking the backseat to Intel, they now have some of the best chips on the market in both PCs and gaming. Their great run will continue; he sees little downside. However, because they are volatile, their option premiums will be pricey. If AMD stays flat or rises, you get 13.6% over 4 months.
A partial covered call. Buy 200 shares at $107.25, sell 100 and get $4.55, net $105.08/share. And let the other 100 shares run and enjoy the upside. And you're paid a nice dividend similar to Canadian banks.
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COMMENT
COMMENT
August 21, 2019
The market is noise. The market today is like February 2018 with a correction in place during a bull market. The US Fed: it's in uncharted territory so they're making up the playbook as they go along. The bull market is now long in the tooth; the yield curve inverts periodically. Both point to a recession. The long bull market is based on easy money, which is actually indicative of inflation. The negative interest rates on the world's debt is actually inflation. No, the weakness in Europe or elsewhere won't trigger a U.S. recession. Only American forces trigger that. The US economy is 70% a service economy, which aren't as volatile as a manufacturing economy, like Germany's who have gone into negative growth. The boomers have money and are spending, so they will keep the U.S. service economy stable.
The market is noise. The market today is like February 2018 with a correction in place during a bull market. The US Fed: it's in uncharted territory so they're making up the playbook as they go along. The bull market is now long in the tooth; the yield curve inverts periodically. Both point to a recession. The long bull market is based on easy money, which is actually indicative of inflation. The negative interest rates on the world's debt is actually inflation. No, the weakness in Europe or elsewhere won't trigger a U.S. recession. Only American forces trigger that. The US economy is 70% a service economy, which aren't as volatile as a manufacturing economy, like Germany's who have gone into negative growth. The boomers have money and are spending, so they will keep the U.S. service economy stable.
Richard Croft
President, R.N. Croft Financial Group Inc.
BUY
BUY
August 21, 2019
Likes it. Interest rates are so low, so collect the fine dividend here. This contains banks and utilities, plus some oil.
Likes it. Interest rates are so low, so collect the fine dividend here. This contains banks and utilities, plus some oil.
E.T.F.'s
BUY
BUY
August 21, 2019
Most BMO covered call ETFs write options against half the positions. It's a yield pick-up plus the dividend. You get covered call options written against European stocks. If you believe the worst is over in Europe (which is debatable), this isn't a bad way to play Europe at all.
Most BMO covered call ETFs write options against half the positions. It's a yield pick-up plus the dividend. You get covered call options written against European stocks. If you believe the worst is over in Europe (which is debatable), this isn't a bad way to play Europe at all.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
He held it for a while then sold options to increase yield. Suddenly, PPL ran up. So, he rolled over the option instead of lose the stock. He wanted to sell leaps, but the 2022 LEAPS are bid 15 cents per $50 call, ask $5.50. What happens to time value? The price is way off. If you sell it, you'll likely keep it until it matures in 2022. He writes options against PPL to deliver cash flows. He likes this strategy. To roll up the strategy, don't sell a long-term LEAP, because you won't get liquidity....On the other hand, he's made the maximum return which you should always aim for. He doesn't think PPL will continue to run sizably. PPL pays a good yield.
He held it for a while then sold options to increase yield. Suddenly, PPL ran up. So, he rolled over the option instead of lose the stock. He wanted to sell leaps, but the 2022 LEAPS are bid 15 cents per $50 call, ask $5.50. What happens to time value? The price is way off. If you sell it, you'll likely keep it until it matures in 2022. He writes options against PPL to deliver cash flows. He likes this strategy. To roll up the strategy, don't sell a long-term LEAP, because you won't get liquidity....On the other hand, he's made the maximum return which you should always aim for. He doesn't think PPL will continue to run sizably. PPL pays a good yield.
pipelines
COMMENT
COMMENT
August 21, 2019
Nothing wrong with this strategy. He can buy it back or sell another option later. Or you can just leave it alone, which is also good. and you at $70, then you get called, you could lose money.
Nothing wrong with this strategy. He can buy it back or sell another option later. Or you can just leave it alone, which is also good. and you at $70, then you get called, you could lose money.
banks
BUY
BUY
August 21, 2019
Long term? India should be in a portfolio, because it is a growing economy with a middle class larger than the US population. Don't invest a lot here, but some, say 5%, the same weighting as China's. But India needs to further build its infrastructure, nowhere near China's. The president is pro-business.
Long term? India should be in a portfolio, because it is a growing economy with a middle class larger than the US population. Don't invest a lot here, but some, say 5%, the same weighting as China's. But India needs to further build its infrastructure, nowhere near China's. The president is pro-business.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
Can this go to 0? Yes. It's triple the exposure to the Nasdaq. A 33% decline in the Nasdaq means losing 100% in TQQQ. Buy a call option on QQQ--same leverage, but limited risk. Think of it as a long-term option, though it could go to zero, too, but it's a smaller loss. Any leveraged ETF trades the futures contract. So, they have to roll those futures every night. And that roll costs the asset every night.
Can this go to 0? Yes. It's triple the exposure to the Nasdaq. A 33% decline in the Nasdaq means losing 100% in TQQQ. Buy a call option on QQQ--same leverage, but limited risk. Think of it as a long-term option, though it could go to zero, too, but it's a smaller loss. Any leveraged ETF trades the futures contract. So, they have to roll those futures every night. And that roll costs the asset every night.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
ETF/stock allocation? 65% of his portfolios are in their pools or ETFs. Stocks are riskier than an ETF, because a basket avoids company-specific risk. If one company in an ETF is hit by, say, wage raises, then it will be offset by other stocks that don't face wage raises. But if you own that company and it faces wage raises, then that stock will get hit. Hold no more than 50% in stocks.
ETF/stock allocation? 65% of his portfolios are in their pools or ETFs. Stocks are riskier than an ETF, because a basket avoids company-specific risk. If one company in an ETF is hit by, say, wage raises, then it will be offset by other stocks that don't face wage raises. But if you own that company and it faces wage raises, then that stock will get hit. Hold no more than 50% in stocks.
Richard Croft
President, R.N. Croft Financial Group Inc.
PAST TOP PICK
PAST TOP PICK
August 21, 2019
(A Top Pick Aug 02/18, Up 8%)A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48 A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48. He's holding onto this. Apple is going well and the CEO has the ear of Trump.
(A Top Pick Aug 02/18, Up 8%)A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48 A covered call. Bought at $201.50, sold 201 at $(6.54), net cost $195.05, now $210.48. He's holding onto this. Apple is going well and the CEO has the ear of Trump.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
August 21, 2019
(A Top Pick Aug 02/18, Down 6%)A covered call. Bought at $338.50, sold 360 at $(21.50), net cost $317, now $210.48. The streaming landscape has changed with more competitors entering this sector. Netflix is spending a whack of money on new shows. They could have a rough road.
(A Top Pick Aug 02/18, Down 6%)A covered call. Bought at $338.50, sold 360 at $(21.50), net cost $317, now $210.48. The streaming landscape has changed with more competitors entering this sector. Netflix is spending a whack of money on new shows. They could have a rough road.
Unknown
PAST TOP PICK
PAST TOP PICK
August 21, 2019
(A Top Pick Aug 02/18, Up 7%) He's holding onto this. It benefits from momentum stocks like Shopify and Square.
(A Top Pick Aug 02/18, Up 7%) He's holding onto this. It benefits from momentum stocks like Shopify and Square.
BUY
BUY
August 21, 2019
Gold itself? He's not a gold bug, but likes XGD, which is a basket of gold-mining companies. Their costs are fixed, but their product will rise in value as does the price of gold. Also, Agnico Eagle will benefit nicely from the rising price of gold, and they are in this ETF. He has no price target on gold.
Gold itself? He's not a gold bug, but likes XGD, which is a basket of gold-mining companies. Their costs are fixed, but their product will rise in value as does the price of gold. Also, Agnico Eagle will benefit nicely from the rising price of gold, and they are in this ETF. He has no price target on gold.
E.T.F.'s
WEAK BUY
WEAK BUY
August 21, 2019
A great long-term hold. This generates income. Bonds won't do this anymore with today's low rates. No, markets won't take off because there's so much uncertainty.
A great long-term hold. This generates income. Bonds won't do this anymore with today's low rates. No, markets won't take off because there's so much uncertainty.
BUY
BUY
August 21, 2019
Nothing wrong with a balanced ETF, a nice stock/bond mix. A balanced ETF makes a good core holding.
Nothing wrong with a balanced ETF, a nice stock/bond mix. A balanced ETF makes a good core holding.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
He bought an option on the S&P at 3,275 to March 2020 at an average cost of $19. Hold till November? He bought an option on the S&P. Interesting--you can exercise them early. 3,275 is an aggressive target to March 2020, but it could happen. Sure, hang onto November. He doesn't expect much time-value erosion till then. Has potential, but you have challenges making that money. He's prefer taking options if he was going long; it's less risky.
He bought an option on the S&P at 3,275 to March 2020 at an average cost of $19. Hold till November? He bought an option on the S&P. Interesting--you can exercise them early. 3,275 is an aggressive target to March 2020, but it could happen. Sure, hang onto November. He doesn't expect much time-value erosion till then. Has potential, but you have challenges making that money. He's prefer taking options if he was going long; it's less risky.
indexes
BUY
BUY
August 21, 2019
ZLC The bond market has more upside so you're okay, but at some point you need to move out. Perhaps go into CPD for preferred shares, a higher yield and tax advantage.
ZLC The bond market has more upside so you're okay, but at some point you need to move out. Perhaps go into CPD for preferred shares, a higher yield and tax advantage.
E.T.F.'s
COMMENT
COMMENT
August 21, 2019
If Brexit crashed out of the EU without a deal, is there an ETF to pick up then wait for a rebound? Good question. He's thinking of buying UK pounds after Brexit; the pound has slipped a lot. The EU won't discuss the last negotiation, so he expects a hard exit which will challenge UK markets. He can't think of an ETF now, but Google for a UK-specific one.
If Brexit crashed out of the EU without a deal, is there an ETF to pick up then wait for a rebound? Good question. He's thinking of buying UK pounds after Brexit; the pound has slipped a lot. The EU won't discuss the last negotiation, so he expects a hard exit which will challenge UK markets. He can't think of an ETF now, but Google for a UK-specific one.
Richard Croft
President, R.N. Croft Financial Group Inc.
TOP PICK
TOP PICK
August 21, 2019
Covered call: buy at $30.70, sell January 30 calls at $4.30, net per share $26.40. After taking the backseat to Intel, they now have some of the best chips on the market in both PCs and gaming. Their great run will continue; he sees little downside. However, because they are volatile, their option premiums will be pricey. If AMD stays flat or rises, you get 13.6% over 4 months.
Covered call: buy at $30.70, sell January 30 calls at $4.30, net per share $26.40. After taking the backseat to Intel, they now have some of the best chips on the market in both PCs and gaming. Their great run will continue; he sees little downside. However, because they are volatile, their option premiums will be pricey. If AMD stays flat or rises, you get 13.6% over 4 months.
electrical/electronic
TOP PICK
TOP PICK
August 21, 2019
A partial covered call. Buy 200 shares at $107.25, sell 100 and get $4.55, net $105.08/share. And let the other 100 shares run and enjoy the upside. And you're paid a nice dividend similar to Canadian banks.
A partial covered call. Buy 200 shares at $107.25, sell 100 and get $4.55, net $105.08/share. And let the other 100 shares run and enjoy the upside. And you're paid a nice dividend similar to Canadian banks.
Financial Services
TOP PICK
TOP PICK
August 21, 2019
Covered call to January 2020 Very volatile. You're writing a slightly in-the-money covered call
Covered call to January 2020 Very volatile. You're writing a slightly in-the-money covered call
computer software
COMMENT
COMMENT
August 21, 2019
An ETF that includes Corus? Look at VOX.
An ETF that includes Corus? Look at VOX.
COMMENT
COMMENT
August 21, 2019
NAV $7.42, but trades around $9--why does this happen? It can happen. Unlike an ETF, a close-end fund won't allow you to take the securities it holds--and it likely holds a lot of illiquid securities. You can move in and out of presumably good cash flow on instruments, hence the premium. That may explain the difference here.
NAV $7.42, but trades around $9--why does this happen? It can happen. Unlike an ETF, a close-end fund won't allow you to take the securities it holds--and it likely holds a lot of illiquid securities. You can move in and out of presumably good cash flow on instruments, hence the premium. That may explain the difference here.
REAL ESTATE
COMMENT
COMMENT
July 3, 2019
Today's record high was a "melt-up." If it continues to go, then this melt-up will be driven by FOMO, rather than stock fundamentals. Likely, we'll see more interest rates cuts in the US of 25 basis points--but we don't need this. There's a ton of investment money out there already, so we don't need that cut. Potentially, trade tensions will ease. Nothing happened at the G20, really. The new NAFTA signing faces a 50/50 chance to complete, given the political turmoil in the States. He expects the China-US trade agreement might happen next year, yet maybe not. Trump has long been playing the trade card with his base, based on trade deficits--which aren't as bad as Trump is leading people to believe. Manufacturing has left the U.S., but the US economy is NOT manufacturing, but high-end service. He's dumbing down issues to play to his base.
Today's record high was a "melt-up." If it continues to go, then this melt-up will be driven by FOMO, rather than stock fundamentals. Likely, we'll see more interest rates cuts in the US of 25 basis points--but we don't need this. There's a ton of investment money out there already, so we don't need that cut. Potentially, trade tensions will ease. Nothing happened at the G20, really. The new NAFTA signing faces a 50/50 chance to complete, given the political turmoil in the States. He expects the China-US trade agreement might happen next year, yet maybe not. Trump has long been playing the trade card with his base, based on trade deficits--which aren't as bad as Trump is leading people to believe. Manufacturing has left the U.S., but the US economy is NOT manufacturing, but high-end service. He's dumbing down issues to play to his base.
Richard Croft
President, R.N. Croft Financial Group Inc.
BUY
BUY
July 3, 2019
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
E.T.F.'s
BUY
BUY
July 3, 2019
A long/bull ETF if China outperforms other markets with a 1-3 year outlook It's liquid and has options if you want to sell covered calls. China is an interesting play now after taking a big hit from US tariffs, but recovering now after the G20 summit. He doesn't agree with Trump's methods, but with his end-game, which is getting China to play fairly.
A long/bull ETF if China outperforms other markets with a 1-3 year outlook It's liquid and has options if you want to sell covered calls. China is an interesting play now after taking a big hit from US tariffs, but recovering now after the G20 summit. He doesn't agree with Trump's methods, but with his end-game, which is getting China to play fairly.
E.T.F.'s
COMMENT
COMMENT
July 3, 2019
I gained $1 from a recent call and put, but WGA is volatile. Take the gains or wait till the October call? Amazon is having trouble disrupting WBA's healthcare business and sector. If you want to take gains, then take half the position you got and close it out--take your profits and let the rest of your money ride.
I gained $1 from a recent call and put, but WGA is volatile. Take the gains or wait till the October call? Amazon is having trouble disrupting WBA's healthcare business and sector. If you want to take gains, then take half the position you got and close it out--take your profits and let the rest of your money ride.
specialty stores
PAST TOP PICK
PAST TOP PICK
July 3, 2019
(A Top Pick Jul 03/18, Up 2%) He bought then expecting higher interest rates, but that didn't happen, so banks are getting squeezed. ZEB has good dividends from quality companies. The Canadian banks are misunderstood. Their fees come from fees and investment banking, not only mortages. ZEB is worth holding.
(A Top Pick Jul 03/18, Up 2%) He bought then expecting higher interest rates, but that didn't happen, so banks are getting squeezed. ZEB has good dividends from quality companies. The Canadian banks are misunderstood. Their fees come from fees and investment banking, not only mortages. ZEB is worth holding.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
July 3, 2019
(A Top Pick Jul 03/18, Up 4%) It consists of American small-cap dividend-payers which are less sensitive to trading headlines. He likes the dividends from solid stocks.
(A Top Pick Jul 03/18, Up 4%) It consists of American small-cap dividend-payers which are less sensitive to trading headlines. He likes the dividends from solid stocks.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
July 3, 2019
(A Top Pick Jul 03/18, Up 7%) Half of it are the FAANGs; half are dividend-paying small-caps. Both were badly hit in Q4 -2018, but the FAANGs have yet to recover fully. But if the market continues to rise, the FAANGs will recover. Hold onto FDN.
(A Top Pick Jul 03/18, Up 7%) Half of it are the FAANGs; half are dividend-paying small-caps. Both were badly hit in Q4 -2018, but the FAANGs have yet to recover fully. But if the market continues to rise, the FAANGs will recover. Hold onto FDN.
E.T.F.'s
BUY
BUY
July 3, 2019
Banks have suffered from interest rate issues and should be a core holding. TD is the best of the big 5 Canadian ones and has a growing US presence. There's little room for the stock price to drop, even as interest rates decline, because that decline is already priced in. History shows that the Canadian banks keep raising their dividends.
Banks have suffered from interest rate issues and should be a core holding. TD is the best of the big 5 Canadian ones and has a growing US presence. There's little room for the stock price to drop, even as interest rates decline, because that decline is already priced in. History shows that the Canadian banks keep raising their dividends.
banks
COMMENT
COMMENT
July 3, 2019
Convert ETF bond funds to rate reset preferred shares? They reset the dividend at some point on the yield curve, maybe 1% above the 5-year rate on Canada bonds. The benefit is that if interest rates go up, they will raise their yields which will stabilize their price. They are being impacted by those resetting their rates today as interest rates decline. That's negative. Preferred are better than bonds only if the preferreds are good quality; preferreds pay a better yield and offer a tax advantage.
Convert ETF bond funds to rate reset preferred shares? They reset the dividend at some point on the yield curve, maybe 1% above the 5-year rate on Canada bonds. The benefit is that if interest rates go up, they will raise their yields which will stabilize their price. They are being impacted by those resetting their rates today as interest rates decline. That's negative. Preferred are better than bonds only if the preferreds are good quality; preferreds pay a better yield and offer a tax advantage.
Richard Croft
President, R.N. Croft Financial Group Inc.
HOLD
HOLD
July 3, 2019
Selling the covered call to gain more income. This has work until recently. Do in the money covered calls instead? If you do, you'll lose the dividend when you sell it. He wouldn't because you'll likely lose the stock and the dividend.
Selling the covered call to gain more income. This has work until recently. Do in the money covered calls instead? If you do, you'll lose the dividend when you sell it. He wouldn't because you'll likely lose the stock and the dividend.
banks
BUY
BUY
July 3, 2019
Morningstar rates it only one star. He likes tech. Don't trust the Morningstar ratings blindly. It's a higher-beta ETF.
Morningstar rates it only one star. He likes tech. Don't trust the Morningstar ratings blindly. It's a higher-beta ETF.
E.T.F.'s
COMMENT
COMMENT
July 3, 2019
A Canadian bank. They pay a good 5% dividend that they've raised 8 times in the last 3 years. True, management keeps messing things up, though.
A Canadian bank. They pay a good 5% dividend that they've raised 8 times in the last 3 years. True, management keeps messing things up, though.
banks
COMMENT
COMMENT
July 3, 2019
I'm 90 and love banks, but what happens to the money I invest in those banks. Should I stop investing? You buy a bank GIC that pays under 3% annually for 5 years or you can buy a bank stock that pays a higher yield, offers tax advantages and rises in share price. Which is better? Keep investing.
I'm 90 and love banks, but what happens to the money I invest in those banks. Should I stop investing? You buy a bank GIC that pays under 3% annually for 5 years or you can buy a bank stock that pays a higher yield, offers tax advantages and rises in share price. Which is better? Keep investing.
Richard Croft
President, R.N. Croft Financial Group Inc.
HOLD
HOLD
July 3, 2019
It's the leading investment bank in the U.S. There's alot of investing money and GS will take advantage of this. Hold onto this; it'll pay off.
It's the leading investment bank in the U.S. There's alot of investing money and GS will take advantage of this. Hold onto this; it'll pay off.
investment companies/funds
COMMENT
COMMENT
July 3, 2019
Strategy or option plans in Canadian energy? Canadian oil is more volatile than the overall market. Look for big oil names that are very liquid, so you can trade options. Look at Suncor for a covered call, but don't expect growth prospects in oil stocks. There'll be headwinds, namely the growth of e-cars. We won't see $100 oil again.
Strategy or option plans in Canadian energy? Canadian oil is more volatile than the overall market. Look for big oil names that are very liquid, so you can trade options. Look at Suncor for a covered call, but don't expect growth prospects in oil stocks. There'll be headwinds, namely the growth of e-cars. We won't see $100 oil again.
integrated oils
PARTIAL BUY
PARTIAL BUY
July 3, 2019
ZID is as good as any. India is a large, diverse economy with 300 million in its middle class. But don't put a lot of money in here; India doesn't invest in economy like China.
ZID is as good as any. India is a large, diverse economy with 300 million in its middle class. But don't put a lot of money in here; India doesn't invest in economy like China.
E.T.F.'s
BUY
BUY
July 3, 2019
A balanced ETF. This includes bonds. If you're around 50 and planning retirement, there's nothing wrong with holding a lot of stocks, but a core holding should be balanced like this one. Weight your equities depending on how agressive you feel you want to be at a given point and time.
A balanced ETF. This includes bonds. If you're around 50 and planning retirement, there's nothing wrong with holding a lot of stocks, but a core holding should be balanced like this one. Weight your equities depending on how agressive you feel you want to be at a given point and time.
E.T.F.'s
DON'T BUY
DON'T BUY
July 3, 2019
It's up 30% this year. It consists of junior gold companies. If these companies find gold, those companies get profitable quickly, but you also gett three times the leverage. It's not a long-term play, but a short-term aggressive one. GLD is better for the long term.
It's up 30% this year. It consists of junior gold companies. If these companies find gold, those companies get profitable quickly, but you also gett three times the leverage. It's not a long-term play, but a short-term aggressive one. GLD is better for the long term.
E.T.F.'s
DON'T BUY
DON'T BUY
July 3, 2019
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
E.T.F.'s
COMMENT
COMMENT
July 3, 2019
I'm concerned when funds keep issuing shares over time. Is there a risk of too many shares in a regular stock and the chance of a rollback? No. They are issuing more shares, likely for institutional investors. So they would buy more of the underlying product to support the ETF.
I'm concerned when funds keep issuing shares over time. Is there a risk of too many shares in a regular stock and the chance of a rollback? No. They are issuing more shares, likely for institutional investors. So they would buy more of the underlying product to support the ETF.
Richard Croft
President, R.N. Croft Financial Group Inc.
TOP PICK
TOP PICK
July 3, 2019
It's been beaten up badly, but after the G20 summit, he expects it to bounce back. It's the Amazon of China and this is one way to play China. (Analysts’ price target is $281.88)
It's been beaten up badly, but after the G20 summit, he expects it to bounce back. It's the Amazon of China and this is one way to play China. (Analysts’ price target is $281.88)
TOP PICK
TOP PICK
July 3, 2019
True, they're under a lot of scrutiny and are looking for a new CEO, but they have an excellent capital position and just passed their stress test. They've raised their dividend and he expects them to raise it by 10%. They just announced 11% stock buybacks. This will support the stock price. They won't get hurt as much by the squeezed margins on the yield curve. (Analysts’ price target is $51.48)
True, they're under a lot of scrutiny and are looking for a new CEO, but they have an excellent capital position and just passed their stress test. They've raised their dividend and he expects them to raise it by 10%. They just announced 11% stock buybacks. This will support the stock price. They won't get hurt as much by the squeezed margins on the yield curve. (Analysts’ price target is $51.48)
investment companies/funds
TOP PICK
TOP PICK
July 3, 2019
March300 calls It's a short-term trade. The $300 calls will cost around $18. If you believe markets will continue to rise, this is how you play it with limited risk. The VIX is low. If the S&P goes to 3,200, you'll get a double on this option.
March300 calls It's a short-term trade. The $300 calls will cost around $18. If you believe markets will continue to rise, this is how you play it with limited risk. The VIX is low. If the S&P goes to 3,200, you'll get a double on this option.
E.T.F.'s
COMMENT
COMMENT
May 9, 2019
Trump has strong support across the board in America; China doesn't play by the rules. He doesn't agree with Trump's style of negotiation, but at least he is calling China on that issue. The markets are spooked by an America-China trade deal not happening tomorrow. No question: tariffs will hit both sides, though there's almost no inflation. We have the lowest unemployment since 1969, which is remarkable, yet we have no inflation--and this confuses central bankers around the world. How? We don't know. This is the most important long-term factor on markets. China has a 6% growth rate, but productivity has been falling for 15 years, yet also has little inflation. Meanwhile, the US is running a high deficit and some day it'll have to be paid back. Down the road, a dramatic melt-up could happen.
Trump has strong support across the board in America; China doesn't play by the rules. He doesn't agree with Trump's style of negotiation, but at least he is calling China on that issue. The markets are spooked by an America-China trade deal not happening tomorrow. No question: tariffs will hit both sides, though there's almost no inflation. We have the lowest unemployment since 1969, which is remarkable, yet we have no inflation--and this confuses central bankers around the world. How? We don't know. This is the most important long-term factor on markets. China has a 6% growth rate, but productivity has been falling for 15 years, yet also has little inflation. Meanwhile, the US is running a high deficit and some day it'll have to be paid back. Down the road, a dramatic melt-up could happen.
Richard Croft
President, R.N. Croft Financial Group Inc.
COMMENT
COMMENT
May 9, 2019
Buy a call at $54 in January 17, 2020 or Jan. 15, 2021 at $55? Is the latter better for the extra year? And add a put to offset the cost? They've had a good run, though it has staggered a bit recently. To buy a two years out is more like a warrant. You'll pay more for the one in 2021. This depends on your timeline--how long do you think CVS will return to its previous level. Either call is fine. Selling a put: If you sold at $55, you'd collect some premium and that would help pay for it. But if you do, all you're doing is creating a synthetic long position, and the same as owning CVS stock.