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Investing In Stocks Isn’t Impossible Or Crazy If You Don’t Swing For The Fences

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Investing in stocks has an allure like no other. Each day there are winners and losers, and one can easily see where they could have made a fortune if only they’d acted yesterday. Sitting down and staring at a screen full of stock prices, you can be sure of one thing: If you pick the right combination and dump all your money in, you will be rich within months. On top of that, the ease of entry and exit is remarkably simple. There are none of the challenges of starting your own business, building sales, hiring heroes and weirdos, dealing with the latter, and skating through the other million challenges only small business owners experience. It’s all a lot of work. But stocks…a few clicks and your fortune is made! Maybe!

No wonder we’re drawn to the game like moths to a flame, and the analogy is more startlingly apt than we realize. After you’ve signed your wings, or even worse piloted straight into the flame, you will nod to yourself, yup, that’s how it goes. Which is a shame.

What makes investing so challenging? Many things, but first it is imperative to understand the pricing of securities. The price will go up or down depending on the perceived fortunes of the company, and many investors sadly believe that by reading a headline or making a guess about some market development like a new demand for graphite, they can go grab a stock and ride it to the moon. And they might, but first it’s critical to understand that the pros, the people that live and breathe markets, are light years ahead of you, and have moved their money accordingly. When you get a hot stock tip from your beard-trimmer, the early/smart money has come and gone, and if not gone, is waiting for you to throw yours in before scampering. 

If you don’t believe me, consider this quote from a remarkably well-placed US market commentator that goes by the mysterious name of The Heisenberg (heisenbergreport.com). The guy (I think) lives and breathes markets, and reading his output makes one realize that the market is moving in ways that retail investors can’t keep up with unless they are diligent to the point of obsession and have about 22 hours a day to devote to the topic. Here’s a quote from one of his posts at Seeking Alpha: “if, for whatever reason, the long-end of the US curve were to suddenly sell-off, the attendant bear steepener would mechanically force an unwind in all manner of equities expressions tied to the “duration infatuation,” including, but not limited to, min. vol. vehicles, momentum products, secular growth, defensives and, obviously, traditional bond proxies.”

Obviously? Huh? I’ve been around markets for decades, watching all sorts of developments, and people like this lose me by the third line. There is a whole layer of expertise in financial engineering that most people don’t even know exists. I’m pretty sure that if you don’t study market manipulations with the devotion of a dog to its feeding dish that you won’t be able to keep up with that narrative.

The coronavirus pandemonium has made things even worse. Blue-chip stocks that once seemed invincible have seen share prices collapse, because the future is unknown. If all the pros are fleeing, why would an average investor even consider entering the game?

You will at some point have to, one way or another, if you’re involved at all in being responsible for your retirement funding. You can farm it all out and pay through the nose, or learn a bit about what you’re actually investing in and if you’re getting your hard-earned money’s worth. Maybe you decide individual stocks aren’t for you, in which case ETFs (Exchange Traded Funds, which are pools of money that buy stocks that mirror stock or bond sectors, or certain sub-indices) are the next best thing (per a guy who should know – Warren Buffett). If you do buy stocks, preferably ones that grow dividends steadily, the stress of watching your portfolio pogo up and down is relieved because you can focus on the dividend cash flow instead. Then you can relax and go back to quality internet programming like funny cat videos or Russian traffic fails. Or is that just me…

 

For more stories, visit Todayville Calgary

Terry Etam is a twenty-five-year veteran of Canada’s energy business. He has worked at a number of occupations spanning the finance, accounting, communications, and trading aspects of energy, and has written for several years on his own website Public Energy Number One and the widely-read industry site the BOE Report. In 2019, his first book, The End of Fossil Fuel Insanity, was published. Mr. Etam has been called an industry thought leader and the most influential voice in the oil patch. He lives in Calgary, Alberta.

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Taxpayers criticize Trudeau and Ford for Honda deal

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From the Canadian Taxpayers Federation

Author: Jay Goldberg

The Canadian Taxpayers Federation is criticizing the Trudeau and Ford governments to for giving $5 billion to the Honda Motor Company.

“The Trudeau and Ford governments are giving billions to yet another multinational corporation and leaving middle-class Canadians to pay for it,” said Jay Goldberg, CTF Ontario Director. “Prime Minister Justin Trudeau is sending small businesses bigger a bill with his capital gains tax hike and now he’s handing out billions more in corporate welfare to a huge multinational.

“This announcement is fundamentally unfair to taxpayers.”

The Trudeau government is giving Honda $2.5 billion. The Ford government announced an additional $2.5 billion  subsidies for Honda.

The federal and provincial governments claim this new deal will create 1,000 new jobs, according to media reports. Even if that’s true, the handout will cost taxpayers $5 million per job. And according to Globe and Mail investigation, the government doesn’t even have a proper process in place to track whether promised jobs are actually created.

The Parliamentary Budget Officer has also called into question the government’s claims when it made similar multi-billion-dollar handouts to other multinational corporations.

“The break-even timeline for the $28.2 billion in production subsidies announced for Stellantis-LGES and Volkswagen is estimated to be 20 years, significantly longer than the government’s estimate of a payback within five years for Volkswagen,” wrote the Parliamentary Budget Officer said.

“If politicians want to grow the economy, they should cut taxes and red tape and cancel the corporate welfare,” said Franco Terrazzano, CTF Federal Director. “Just days ago, Trudeau said he wants the rich to pay more, so he should make rich multinational corporations pay for their own factories.”

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UN plastics plans are unscientific and unrealistic

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News release from the Coalition of Concerned Manufacturers and Businesses of Canada

“We must focus on practical solutions and upgrading our recycling infrastructure, not ridiculous restrictions that will harm our health care system, sanitary food supply, increase costs and endanger Canadians’ safety, among other downsides.”

This week Ottawa welcomes 4,000 delegates from the United Nations to discuss how they will oversee a reduction and even possible elimination of plastics from our lives. The key problem is no one has ever figured out how they will replace this essential component of our modern economy and society. The Coalition of Concerned Manufacturers and Businesses of Canada (CCMBC) has launched an information campaign to discuss the realities of plastic, how it contributes massively to our society and the foolishness of those who think plastics can be eliminated or greatly reduced without creating serious problems for key industries such as health care, sanitary food provision, many essential consumer products and safety/protective equipment, among others. CCMBC President Catherine Swift said “The key goal should be to keep plastics in the economy and out of the environment, not eliminate many valuable and irreplaceable plastic items. The plastics and petrochemical industries represent about 300,000 jobs and tens of billions contribution to GDP in Canada, and are on a growth trend.”

The UN campaign to ban plastics to date has been thwarted by reality and facts. UN efforts to eliminate plastics began in 2017, motivated by such terrible images as rivers with massive amounts of floating plastic and animals suffering from negative effects of plastic materials. Although these images were dramatic and disturbing, they do not represent the big picture of what is really happening and do not take into account the many ways plastics are hugely positive elements of modern society. Swift added “Furthermore, Canada is not one of the problem countries with respect to plastics waste. Developing countries are the main culprits and any solution must involve helping the leading plastics polluters find workable solutions and better recycling technology and practices.”

The main goal of plastic is to preserve and protect. Can you imagine health care without sanitary, flexible, irreplaceable and recyclable plastic products? How would we keep our food fresh, clean and healthy without plastic wraps and packaging? Plastic replaces many heavier and less durable materials in so many consumer products too numerous to count. Plastics help the environment by reducing food waste, replacing heavier materials in automobiles and other products that make them more energy-efficient. Many plastics are infinitely recyclable and innovations are taking place to improve them constantly. What is also less known is that most of the replacements for plastics are more expensive and actually worse for the environment.

Swift stated “Environment Minister Steven Guilbeault has been convinced by the superficial arguments that plastics are always bad despite the facts. He has pursued a campaign against all plastics as a result, without factoring in the reality of the immense value of plastic products and that nothing can replace their many attributes. Fortunately, the Canadian Federal court overturned his absurd ban on a number of plastic products on the basis that it was unscientific, impractical and impinged upon provincial jurisdiction.” Sadly, Guilbeault and his Liberal cohorts plan to appeal this legal decision despite its common-sense conclusions. Opinion polls of Canadians show that a strong majority would prefer this government abandon its plastics crusade at this point, but history shows these Liberals prefer pursuing their unrealistic and costly ideologies instead of policies that Canadians support.

The bottom line is that plastics are an essential part of our modern society and opposition has been based on erroneous premises and ill-informed environmentalist claims. Swift concluded “Canada’s record on plastics is one of the best in the world. This doesn’t mean the status quo is sufficient, but we must focus on practical solutions and upgrading our recycling infrastructure, not ridiculous restrictions that will harm our health care system, sanitary food supply, increase costs and endanger Canadians’ safety, among other downsides.” The current Liberal government approach is one that has no basis in fact or science and emphasizes virtue-signaling over tangible and measurable results.  Swift noted “The UN’s original founding purpose after World War II was to prevent another world war. Given our fractious international climate, they should stick to their original goal instead of promoting social justice warrior causes that are unhelpful and expensive.”

The CCMBC was formed in 2016 with a mandate to advocate for proactive and innovative policies that are conducive to manufacturing and business retention and safeguarding job growth in Canada.

SOURCE Coalition of Concerned Manufacturers and Businesses of Canada

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