Chatter Around the World – 104

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

novelinvestor-sector-returns-1h-2015

Image Source: Novel Investor

Let’s dive into the links that caught my attention this week.

Updates from My Portfolio Holdings

Interesting Reads

Dividend Reads

Dividend Stock Analysis

Have a wonderful weekend!

A Frugal Family’s Journey maintains a centralized repository of dividend stock analyses and recent buys from around the blogging community.

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18 thoughts on “Chatter Around the World – 104

  1. Interesting chart. Defensive sectors seem to be doing well so far this year. Maybe investors feel uncertain about the financial woes in Puerto Rico, Greece, and China, so they’re piling into safer equities. J&J all the way. 🙂 Thanks for including my post this week.

    • Yes, it appears that people are running from riskier investments and also from the bond substitutes – REITs and utes…anticipating a rate rise from the Fed. Healthcare has done really well not just this year but the last 2 years.
      Happy to include your post. Have a great wknd.
      R2R

    • Happy to include your post, FerdiS. Interesting list…I recalled that you invested in MIC recently and had to go back and re-read up on it. Interesting company.

      Have a great wknd
      R2R

  2. JC says:

    Thanks for the mentions and for the collection of links. I’ll have to read through the ones I missed this past week. Hope you have a great weekend!

  3. Another great list of dividend reads. I liked the GWW stock analysis. It’s a great company that I have held for seven years still not sure why it isn’t more popular among the dividend growth bloggers. It’s my closest thing to a “retail” stock that I own.

    • I read up the financials and it looks great…I still havent done any research on it myself…its been on my list of companies to check out for a long time. Good to hear that you are a happy shareholder there.

      cheers
      R2R

  4. eldee says:

    hi R2R !

    what are you hearing or your take on the BOC dropping interest rates to a all time historic low since pre great depression ?

    what are you doing with equities, buying more ? i.e. cdn banks, telecom that have a history of growing their dividends over time and are paying a pretty good yield compared to other investments ?

    I still think that we never got out of the 2008/09 recession. This is just the 6th Inning of the current recession……the next 1/3 rd of this ballgame will be consumer debt, housing prices, inflation and higher interest rates. This will further tap out the consumer and prolong the recession. If the Cdn Banks lower their mortgage rates again ( I just cant seeing them do that) then housing prices will get another leg up. This will indeed create an already housing bubble, just waiting for prices to implode someday. It is not a matter of “if” but a matter of “when”. Housing prices just cant keep going parabolic forever. All good things come to an end unfortunately. I look forward as always to your take on things. Thank you….eldee

    • Hi eldee,
      The BoC rate cut was expected, so I wasnt surprised by it – what I was surprised by was the immediate announcement from TD to say that they are not going to cut the prime rate by 25 basis points, but rather just 10 basis points! The banks are not passing on the stimulus to the consumers as BoC intends to – they are passing on less than half the cut to consumers. The spread between BoC overnight rate and prime rate grows from 2% last year to 2.1% this January – and now to 2.25%. Im sure the other banks will follow suit seeing TD’s move. I added to my position to TD this morning after that move (post on my blog coming soon)…as this will buoy the profits and balance sheets for the Canadian banks. See the rates chart from this article I wrote in Feb: http://seekingalpha.com/article/2900476-its-time-to-start-nibbling-the-canadian-banks
      Moreover, the drop in CAD$ will mean companies with US operations will benefit – thats why you see the pop in companies that have a strong US presence (and report financials in CAD$) – companies such as the banks (TD has second highest exposure to US amongst our banks), CN Rail etc.

      Yes, the housing bubble will burst or slow-land one way or another. This move will push the home prices even higher…although I saw one comment (from someone on Twitter) which I thought was interesting – that the lowered interest will mean that the housing bubble will burst, but just delayed – as folks who have stretched too thin will be able to afford their mortgages longer. I agree with you – its a matter of “when” and not “if” the housing market in Canada crashes.

      For now, I stay invested. And equities are still the place to be.
      R2R

      Btw, I saw some comments (again on Twitter – so theres on official source yet) that BoC intends to launch or will launch if needed a QE program! That will be huge!!!

  5. eldee says:

    Thank You !

    I think the thirst for equity yields keeps moving the markets higher and higher. (kinda dangerous).

    I think low interest rates are here to stay.

    Equities seem to be one of the only game in town to get some kind of decent return on your investment ie. yield + capital appreciation.

    The lower C$ should help Canadian Multinationals when they repatriate the US$ currency back to CDN$ they will get an automatic 20% – 25% pickup right to the bottom line. TD is a GREAT pick !

    • eldee,
      This push to equities for returns is only going to inflate the stock market bubble in addition to the housing market bubble we have. The damper in Asia sure puts a huge pressure on the commodities market keeping the Canadian market subdued.
      The strong US$ should help a few other companies too – I am doubling down and will be looking to invest more in companies with international operations instead of converting my funds to US$ to buy US equities. Its a bad deal for importers though.

      Happy investing!
      R2R

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