HOLD
1-5 Yr government bond ETF. If interest rates go up, will the price of this go down? Yes, but it's a very small move on the price. Paying about a $.20 dividend for around 3.6-3.8.
DON'T BUY
Gold ETF. He prefers playing gold where it is US$ hedged, which is available through HBP gold ETF. Doesn't see any point in trading gold if he is going to make money on the commodity but lose a good portion of it on the currency.
COMMENT
Caller has stocks in his RRSP where he can't write options. What about writing naked calls on these? Naked calls is essentially something you should never do. There is no reason why you can't write options in your registered account.
TOP PICK
S&P 500 Cdn$ ETF. This has always been a core holding. You always need something that represents the S&P 500 that is currency hedged.
TOP PICK
NASDAQ 100 Equity Cdn$ hedged. This gives you access to the US market in Cdn$. If anything is going to grow in the US, it has to be technology. It also has 15%-17% healthcare included.
DON'T BUY
Theory that emerging markets are going to lift US economy out of recession is questionable. A number of issues including China having its currency pegged, the cutbacks, cooling off the housing market, etc. Also based in US$’s so would prefer something that was hedged.
DON'T BUY
Global Gold Bull+ ETF. If you are a momentum trader, this is fine but not an investment. Leveraged. He prefers investing for the long-term.
COMMENT
Covered Call Strategy. Write monthly covered calls month after month or go for long-term, say 1-year out? He prefers 6 months out which saves on trading costs over a month-by-month and on a yearly one, you don't get the same bang for the buck. This also gives you downside protection.
TOP PICK
(A Top Pick Oct 15/09. Up 3.19%.) TSX 60. Has always been a core holding for him. Also good for covered call writing.
PAST TOP PICK
(A Top Pick Oct 15/09. Down 5.99%.) S&P/TSX energy. Still likes.
PAST TOP PICK
(A Top Pick Oct 15/09. Down 3.26%.) Emerging market ETF. Still likes.
DON'T BUY
S&P/TSX IT. Basically RIM (RIM-T) and friends. Not broad enough coverage for him so he doesn't use it.
BUY
Canadian investors have a golden opportunity with the strong Cdn$ to buy shares in companies that are domiciled in countries where the currency is weaker. You are getting quality companies at value prices.
TOP PICK
Headquartered in England so trades on the London exchange. Perfect one for the strong Cdn$ to buy weak foreign currency stocks. 1/3 of its business is Scotch so with the pound going down, costs are going down and sell most of their product outside of the UK. 3.5% yield.
TOP PICK
Based in Switzerland so a perfect one for strong Cdn$ to buy weak foreign currency stocks. Global player. Infrastructure player has yet is the largest player in electrical transmission/distribution. Also in process automation. Electrical transmission in North America is outdated and has to be renewed. Great long-term story. Over 5% yield.