Outlook for November 2018

October turned out to be one scary month for a lot of investors. Most portfolios took a haircut with the broad market taking a plunge. Almost half of the S&P 500 stocks are in bear market territory now, having fallen more than 20%. I am now waiting for the other shoe to drop. When you have a handful of stocks (the big 5 tech stocks) making more than 15% of world’s largest financial market, nothing good can come from it. I’ve been highlighting this for the last year or so and finally the tide is turning with the major tech stocks plunging in October.

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Is Now a Good Time To Sell a House?

The following is a guest post.

There are many factors to consider when selling a house. Many homeowners are still worrisome from the 2008 financial crisis that saw the values of properties drop significantly. It is vital to keep an eye out for any red flags that a similar real estate market crash is imminent. However, if you want to get ahead of any turmoil, then now is a relatively good time to sell. A real estate professional can assuage any fears you have, but 2018 is looking to be a great year for homeowners.

Home Prices Continue To Rise at the Moment

Price have had upward movement over the last several years. Although the exact rate will depend on where in the country you live, housing prices in the United States are projected to grow roughly three percent in 2018. The one downside to this trend is that housing prices are outpacing family incomes, so there are a lot of people who are delaying making a home purchase. However, there are still plenty of options for sellers out there, and you can find a great buyer at this time.

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Outlook for October 2018

The Fed has gone ahead and raised rates again. As rates continue to rise, investors have to wonder which one of these raises will finally go past the tipping point for the market? With the ongoing EM crisis, other developed markets absolutely hated, and the US$ being loved and given a bullish rating on everyone, it is pretty interesting to note that the DXY has not cracked past 97 so far this year. There are some signs that the DXY top is already in for this cycle, but some other signs that indicate that it could go a bit higher — depends on which data points you look at. I remain weary and neutral on it while maintaining defensive positions.

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Recent Buy – KL

BuySell

A quick update on a a recent purchase in my portfolio.

Hard to ignore some crazy cheap valuations in the precious metals mining sector. Last week, I nibbled a bit and added more to my already largest position in portfolio. I added 100 shares of Kirkland Lake Gold (KL.TO) @ CAD$23.00. I have been buying KL (and its pre-merger Newmarket Gold) for a while now. The company has been one of the best performing stocks in TSX (and my portfolio) and executing even better than expected. Management continues to make fantastic progress with their revenue and earnings quarter after quarter, started issuing dividends last year (and has tripled them since!), news flow has been stellar every few months where higher/better/richer resources discovered in their existing mines. It’s hard to find a fault with this company.

Lately, the company has come under selling pressure and was a head scratcher for everyone. Finally, it was revealed last week that Van Eck (the ETF company) was dropping KL from its junior index (GDXJ) and promoting it to the senior index (GDX). GDXJ’s top holding was KL and this explained why there was so much selling over the past few weeks. It was also announced that Sep 21 would be the final day of selling out from GDXJ. When the market provides you fat pitches, you have to swing! I decided to wait until this window was closing and added to my position on the last day of selling. It has also been noted that insiders have started buying below CAD$25.00, so I think it provides good valuation at the current price. Current yield is close to 0.5% and with this purchase, I add $12 to my forward dividend income.

Full Disclosure: Long KL.TO. Our full list of holdings is available here.

Nifty Ways on to the Property Ladder

The following is a 3rd party contribution

With banks more reluctant than ever to lend and housing shortages across the length and breadth of the UK, times have never been harder for first time buyers.  While fingers are still being pointed at who is to blame for this housing crisis, there are in fact ways out there to get on the property ladder even on a modest income. By simply reviewing your options and researching what’s available to you, a whole range of properties and locations become far more feasible from Houses for sale in Dover to Properties in London.

Shared Ownership

This fairly new scheme allows you to part buy and part rent your home while benefiting from a reduced deposit and more manageable mortgage. With Shared ownership you can own up to 75% of the home initially and rent the remaining portion from a housing association. Housing associations are not profit meaning you will receive far less rent costs compared to private landlords.

In addition, you will only have to pay a deposit on the percentage of the home you are buying, therefor for 50% of a house marked at £200,000 a deposit of £10,000 will be required compared to the £20,000 needed without the scheme. These homes span across the whole of the UK from houses for Sale in Lewisham to Liverpool, from quaint countryside dwellings to central city apartments, these new builds ensure you receive top quality for an affordable price in the area that is right for you.

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