Stocks - The Best Buys 2

[manwiches]

Originally Posted by fleury

What a damn dip this has been. Literally losing 2% of my portfolio daily.

I feel your pain. Everything has been red lately for me, except for AMRN. The only thing keeping my overall portfolio green. I'm hedging a big bet that it'll sky rocket. I will know more Thursday morning after the call...

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[Johnny199r]

Never fun to see the market drop a lot, but we've been spoiled these last 9 years. Back to reality.

[OMG!WTF!]

Anyone planning any moves before the election on Tuesday? It's going to be a whippy reaction either way. If the dems wins anything I think it will drop, then bounce, then dip, then recover, then continue lower. Yep. Book that. Drop, bounce, drop, dip, down.

[OMG!WTF!]

This is kind of cool and terrifying...


https://www.thealgolab.com/home1.html


This seems to be the way things are going. Guy's from Calgary too. Lots of smarty pants traders here.

[jeffporfirio]

Originally Posted by OMG!WTF!

This is kind of cool and terrifying...


https://www.thealgolab.com/home1.html


This seems to be the way things are going. Guy's from Calgary too. Lots of smarty pants traders here.

Don't know how legit this is, it seems to good to be true, but anyways it seems like it would be a nightmare come tax time.

[OMG!WTF!]

Originally Posted by jeffporfirio

Don't know how legit this is, it seems to good to be true, but anyways it seems like it would be a nightmare come tax time.

I don't think the returns are out of line at all. The equity graph looks realistic and similar to other algorithm results. The problem with algorithmic trading is executing the trades needed to achieve the results. The interesting part of this one is they do the trades for you through your own account and only hold 20 positions at any time. Other algorithms I've seen produce better results but require hundred of trades a day.



I suspect your brokerage statement would satisfy your accountant but it would definitely be income. No tfsa trading here.

[Shazam]

"Hey guys, our software made money in a bull market. Therefore it works!"

[Slava]

My favorite is the backtest (which is glorious, of course). You never see the iterations that fared poorly. These things are amusing though, because if you really had an easy way to crush the market there’s no way you run radio ads and pile people in to destroy your advantage.

[Delthefunky]

I just opened an investing account with my bank, and I plan on contributing a good chunk of my monthly income into some ETF's. I think they make the most sense for me, just because I'm not a financial pro by any means, and I'm just looking for long term saving without much risk.

I'm just wondering how to diversify these? From what I've seen, there's some pretty good ones that return ~ 10%, but these have been mostly technology and S&P 500 composed.

What about other industries, like robotics, energy, and water?

I haven't found anything great in those categories, and wonder why I would invest in them if they don't offer the same returns as the tech oriented ones that I've discovered? I understand though that the future for these is probably pretty bright.

[Resolute 14]

Canadian Couch Potato offers some basic suggestions for passive plans using three ETFs:

https://cdn.canadiancouchpotato.com/...-ETFs-2017.pdf

[OMG!WTF!]

You can pretty much Google any information you want about ETF's. Here's a site with the robotics/AI etf's...


https://etfdb.com/themes/artificial-intelligence-etfs/


Here's one for water...


https://www.thebalance.com/top-water...r-2018-4171842


I feel like maybe you're jumping in at a bit of a perilous time. The market looks much different now than any time in the last 6 years. Diversification is not going to save you in today's market. By definition your US stock portfolio is diversified when you own the S&P. What you're trying to do by buying other stock sector etf's is pick winners. When the S&P goes down it typically drags other sectors with it. Diversifying from stocks means bond etf's, gold to some extent and inverse etf's though you can't own those for very long without losing time value. If you're planning to ride out large fluctuations and you want to try to pick winners, it may be beneficial to look into what really happens when the market goes down. It's also super important to plan your losses, know when you've been proven wrong. A long time frame and diversification typically doesn't save you from your inherent bad trading psychology.

[bizaro86]

Originally Posted by Delthefunky

I just opened an investing account with my bank, and I plan on contributing a good chunk of my monthly income into some ETF's. I think they make the most sense for me, just because I'm not a financial pro by any means, and I'm just looking for long term saving without much risk.

I'm just wondering how to diversify these? From what I've seen, there's some pretty good ones that return ~ 10%, but these have been mostly technology and S&P 500 composed.

What about other industries, like robotics, energy, and water?

I haven't found anything great in those categories, and wonder why I would invest in them if they don't offer the same returns as the tech oriented ones that I've discovered? I understand though that the future for these is probably pretty bright.

Past performance isn't a great thing to go by for industry ETFs, as it sometimes means that specific industry is in a bubble.

Financial and homebuilder ETFs had great recent performance at the end of 2007, for example.

If you're picking ETFs, I think going with broad ones is a good choice. SPY for the US, and VCE for Canada. (I use VCE because it has lower fees than something like XIC).

If you put your money into a 50/50 mix of those two, I think its very likely you'd outperform something like 80% or more of investors with almost no work. You could add an international ETF at some point as well.

[Bill Bumface]

^ Too much Canada in that 50/50 portfolio.

https://en.wikipedia.org/wiki/Equity_home_bias_puzzle

[bizaro86]

Originally Posted by Bill Bumface

^ Too much Canada in that 50/50 portfolio.

https://en.wikipedia.org/wiki/Equity_home_bias_puzzle

Fair point. I personally think having significant exposure to the currency your expenses are in makes sense, and do think that 50/50 would outperform a huge percentage of investors.

You could set the weights any way you prefer, and add an MSCI world fund for international balance, as I mentioned.

[OMG!WTF!]

Anyone getting cold feet yet? Is this one of those things you ride out because you have a long term plan? I really like these strong market moves. it makes trading easy when trends break. I think 235-240 on the SPY is bottom of the barrel. But who knows with crazy Trump on Twitter every six hours.

[CaptainYooh]

I am about 17% down YTD on the overall portfolio value. Every day for the past 5 months I kept telling myself to wait another week until the market starts recovering, yet it keeps creeping down. Maybe, it's time to cut the losses, cash out and wait until whatever crap is happening to the markets happens and ends.

[Slava]

Originally Posted by CaptainYooh

I am about 17% down YTD on the overall portfolio value. Every day for the past 5 months I kept telling myself to wait another week until the market starts recovering, yet it keeps creeping down. Maybe, it's time to cut the losses, cash out and wait until whatever crap is happening to the markets happens and ends.

Depends on what your time horizon is and what you’re holding. In general though, it’s a poor time to sell. Plenty of people are, having bought high and are now selling low, but it’s not likely a good decision.

(Tax loss harvesting is another matter of course, but there are ways to do that more effectively)

[Shazam]

Cash out?? Now is the time to buy.

[CaptainYooh]

Originally Posted by Shazam

Cash out?? Now is the time to buy.

Definitely not, if you think the market is going into recession. And that is a very popular sentiment these days if you listen to stock commentators and portfolio managers on TV.

In general, I just love this "time to buy" notion. Yeah, if you are sitting on oodles cash to invest and if you are confident about these investments being profitable, then maybe. Most retail investors have portfolios of stocks, bonds and a relatively small amount of cash that needs to be there as a buffer. And if the stocks in those portfolios are down, the "time to buy" advice is not that useful.

[Shazam]

Why, the stock market could go to zero. Zero!

For God's sake, at the very least, don't cash out. That is the dumbest thing to do, other than getting pumpkin futures.