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***Beware of corporate debt.***

***Verify Price to Earnings over multiple years, not merely the last***
***Do the same for other measures***
Do stock market bubbles tend to end shortly before/after new elections?
***Invest in corporate bonds. These pay more than money market funds and can car
ry not a whole lot of extra risk as long as we go with very solid companies like
MSFT for 3 year or lower timeframes.
bonds trading at a discount -- bonds trading below par.
***Do read up more on corporate bonds
Can you buy them through an RDSP at say RBC? TD?
*****Municipal bond yields?***** -- something around 3% interest...
Look for municipal and corporate bonds that can be bought at a discount We will nee
d to read books on this topic.
USA only to avoid risk of Canadian interest rate hikes Invest at a time when the US
D/CDN exchange rate is not so awful
More research needed on this. Maybe I should actually stick to Canadian municipa
l bonds / Canadian corporate bonds This means I would need to research Canadian int
erest rates to make sure I don't get fucked over when the interest rates rise. O
n the plus side, I wouldn't have to worry about currency fluctuations wiping out
Look at bond yields (e.g. not bond coupon rates). If the bond yield is much larg
er than the coupon rate, the company may very well be in trouble and it would be
prudent to investigate further prior to investment.
***Look at Shiller P/E --> the higher it is, the worse investment opportunities
tend to exist for the S&P500 index. Ideally it is under 20.***
high grade bonds and high grade common stocks / S&P500..
***Look for good opportunities to buy stocks like Facebook at a very severe disc
ount when the next market crash happens. What we want are companies that are act
ually profitable but nowhere near justifying their present price. We want compan
ies who earnings are expected to grow and who have been unfairly punished during
the recession. Ensure you pay attention to the company's debt and to its financ
ial statements.***
***Be on the lookout for hot stocks which ARE NOT overvalued. What is going to b
e hot in the future? Can we expect it to keep juicy margins moving forward?***
Here are some of the handicaps mutual-fund managers and other professional inves
tors are saddled with:
With billions of dollars under management, they must gravitate toward the bigges
t stocksthe only ones they can buy in the multimillion-dollar quantities they need
to fill their portfolios. Thus many funds end up owning the same few overpriced
Investors tend to pour more money into funds as the market rises. The managers u
se that new cash to buy more of the stocks they already own, driving prices to e
ven more dangerous heights.
If fund investors ask for their money back when the market drops, the managers m
ay need to sell stocks to cash them out. Just as the funds are forced to buy sto
cks at inflated prices in a rising market, they become forced sellers as stocks
get cheap again.
Many portfolio managers get bonuses for beating the market, so they obsessively
measure their returns against benchmarks like the S & P 500 index.
*****If a company gets added to an index, hundreds of funds compulsively buy it.
(If they dont, and that stock then does well, the managers look foolish; on the ot
her hand, if they buy it and it does poorly, no one will blame them.)*****
***Look at mutual fund 13F investment holdings***
I want to find what people are holding for the long term.
75% bond / 25% stock at 2013 type market conditions. Say, once I have $120,000.
TD vs RBC S&P500 fund? <-- get a list of who owns a particular stock. + 13F filings to find out who is invested in what.
Put options on MOMOs...
Call options on value investments I make For example, if I buy Walmart during a rec
ession, I could sell the opportunity to buy Walmart for 20% less than the price
I purchased it for. If it doesn't happen, I get this free money -- if it does ha
ppen, no big deal, I can just go out and buy Walmart again if I still want it wh
ich I would. I'm not really sure how this works but we shall read books on optio
n trading.
Short selling
Options trading
Futures contracts
Corporate/Municipal bonds / bond ETFs.
Value investing is investing not with returns but rather preservation of capital
in mind.
Stocks may take a hit in November/December, especially stocks that have already
decreased over the course of the year since this will allow shareholders to real
ize their losses and in the process reduce their tax burden. ***There may be inv
estment opportunities to be had here***
- insider sales
- very large volume abnormalities
- price to book ratio *** ?!?
***Read up on forensic accounting.***
13F filings, stockzoa.
*** Try to understand institutional investor mentality since they comprise the v
ast majority of trading on the stock exchanges. ***