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COMMENT
After the recent 20% decline, investors are now taking on risk. The rebound has happened. Buy the dips is still the mantra. Over the last 11 years, the US market has been the *only* game in town. Canada and MSCI are small in comparison, dead money really. That said, the darling from the previous decade won't be the darling in the next. Where is the puck going? Over 20 years, Canadian returns total 583% vs. the US 209%, both is USD. Problem those Canadian returns haven't happened in the past 11 years. The lesson: diversification is key.
Unknown
COMMENT
XUU vs. XSP as the better play in the US market XSP is the S&P and CAD-hedged, while the XUU is the broad US market, including the small- and mid-caps without the CAD hedge. He prefers to play in USD, because the USD is a flight to safety when world markets struggle. You want to hold USD as a general rule.
E.T.F.'s
COMMENT
Is this overdiversified? No, it's under. It relies on dividend flows, which means it'll have higher interest rate sensitivity than most ETFs which could help or hurt you. This takes many strides in the right direction. You can probably hold a lot of this without getting hurt
E.T.F.'s
BUY
XUU vs. XSP to play the US market XSP is the S&P and CAD-hedged, while the XUU is the broad US market, including the small- and mid-caps without the CAD hedge. He prefers to play in USD, because the USD is a flight to safety when world markets struggle. You want to hold USD as a general rule.
E.T.F.'s
BUY
Is all the bad news baked in? A good China ETF. China is the second-largest economy in the world, but has less than 2.5% exposure in the MSCI indexes. America has peaked, so money managers will be chasing China. This is a 10-20-year play with lots of corrections. Dont time this. A long-term secular play. Edge money in patiently over time.
E.T.F.'s
BUY
Preferreds are Jekyll and Hyde: when markets are calm, they act normally and give you a coupon-like return, but when markets act crazy, they act like an equity. All preferred share indices have declined 10-15% because of the rate reset and credit. When there's equity duress and rate resets, these ETFs go down. Instead, buy an actively managed ETF; it's worth the extra fee.
E.T.F.'s
DON'T BUY
This shorts volatility in the markets--and a portfolio drag in the long-term. You'll underperform in a strengethening market. He's not a fan of covered writing. 6.7% yield.
E.T.F.'s