Investing in the stock market - Discussion

[Ronaldoescobar]

SNC and Bombardier getting smoked today... 

[CBH1926]

8 hours ago, Tortorella's Rant said:

I mentioned these things to him but like most people they are stubborn and are going to do what they want anyway. There's nothing wrong with playing it safe. But, you know.. stubbornness.. 

These types of ipo’s are super risky, when you hit jackpot you sell it.

When you buy at 45 and it skyrockets to almost 250, you take the money and run.

Now in 1 week you lost 30%, oh well c’est la vie.

[WilliG]

The market goes up and down and sometimes it goes down substantially. I think if you are willing to commit your money for 10 or more years and hold it through the ups and downs then you’ve got a mathematically significant probability of earning profits from it. But If you aren’t in it for the long haul through the highs and lows then don’t bother. I took loans to invest in the stock market. I found reliable company, here is website, that provides short term loans for everybody. At that time it was the right decision.

Edited August 8, 2019 by WilliG

[Shift-4]

Everything is going on sale again  lol

[nuckin_futz]

On 8/14/2019 at 9:56 AM, Shift-4 said:

Everything is going on sale again  lol

 

[Tortorella's Rant]

Is it smart to put more into my portfolio right now with all the talk of recession? I know the media has been harping on it for years, but other advisers I talked to in person also spoke of this, and this was last year.. 

[Tortorella's Rant]

Guess not. Dave Ramsay said that's CNN being CNN again. Those I spoke to talked about a slow down. But that doesn't mean a recession

[KoreanHockeyFan]

I know this is a stock thread, but I wanted to see if anyone has some background on ETFs/Mutual Funds.

 

I've got about 20k in mutual funds right now, but I'm getting quite annoyed with the amount I'm losing on fees. Currently pondering on whether I should move the entire 20k into ETFs or split between Mutual Funds and ETFs. I've heard good things about TD's E-Series mutual funds which have lower fees; maybe I could re-balance my mutual fund portfolio into the E-Series funds or, as I mentioned before, move it into ETFs. 

 

Also want to start getting into stocks so I might pull a couple of grand from the 20k to put into stocks. 

 

Thanks in advance for your 2 cents

 

[RRypien37]

1 hour ago, KoreanHockeyFan said:

I know this is a stock thread, but I wanted to see if anyone has some background on ETFs/Mutual Funds.

 

I've got about 20k in mutual funds right now, but I'm getting quite annoyed with the amount I'm losing on fees. Currently pondering on whether I should move the entire 20k into ETFs or split between Mutual Funds and ETFs. I've heard good things about TD's E-Series mutual funds which have lower fees; maybe I could re-balance my mutual fund portfolio into the E-Series funds or, as I mentioned before, move it into ETFs. 

 

Also want to start getting into stocks so I might pull a couple of grand from the 20k to put into stocks. 

 

Thanks in advance for your 2 cents

 

If you're young, get your money out of that garbage and invest it into ANYTHING else that you actually have some control and a say in without the ridiculous fees.

 

Mutual Funds are a prehistoric relic (unless you are old already). 

[Tortorella's Rant]

1 hour ago, KoreanHockeyFan said:

I know this is a stock thread, but I wanted to see if anyone has some background on ETFs/Mutual Funds.

 

I've got about 20k in mutual funds right now, but I'm getting quite annoyed with the amount I'm losing on fees. Currently pondering on whether I should move the entire 20k into ETFs or split between Mutual Funds and ETFs. I've heard good things about TD's E-Series mutual funds which have lower fees; maybe I could re-balance my mutual fund portfolio into the E-Series funds or, as I mentioned before, move it into ETFs. 

 

Also want to start getting into stocks so I might pull a couple of grand from the 20k to put into stocks. 

 

Thanks in advance for your 2 cents

 

I did the Wealthsimple thing after the garbage end to 2018 which is basically all that - ETFs and index funds. My portfolio guy previously was doing 80% equity and most of it being small market cap. I didn't do my due diligence getting involved here because I knew so little. I only did it because my uncle was also invested with him but he's got a lot of money and he's &^@#ing crazy. But the portfolio manager never asked me any of the basic questions like what am I expecting here, what is my risk tolerance, and so on. So that was his fault too.

So my portfolio imploded big time and he kept collecting the fee. Any dividends? Gone to pay his fee. Then he "sold into the rally and bought into the dip" as he put it I believe. So when he bought TGT at $87 a share then sold it at $70. Then bought again shortly after at $73 and sold it at $78 (not the exact numbers but basically this is what he did) - I still lost money. And this happened with probably a dozen holdings I had. So I was out thousands of dollars. So I called him and asked what the hell was going on with my portfolio. And the above is what he explained. He stated his goal was to beat the index as a fund manager (which is historically impossible in the long term according to that guy named Warren Buffet who has 80 billion dollars and is a strong advocate of the index fund and ETF). Then I questioned why not just employ a buy and hold strategy because now TGT is well over $100 for example - why are you buying companies you don't think will rebound within "a reasonable amount of time" I asked. He didn't appreciate me questioning him because he has clients with over a million and I got a measly 100k so my thoughts don't matter. Then he also mentioned that 2019 could do really well for me but there could also be a double digit loss percentage wise. I don't have nearly that kind of capital to sustain that. Basically I took my money to WS with a polite &^@# you because he still had control over it at the time. I don't question his ability to make money but that was not the right plan for me.

So now my money may not grow as quick as with him in the meantime but I take a lot less risk with ETFs and index funds, pay almost nothing in fees, and keep all of the dividends for myself.

[Tortorella's Rant]

I kept the ENB preferred shares though because of the dividend. But those have been losers since the day he bought them share price wise. I hope they rebound eventually..

[nuckin_futz]

On 9/9/2019 at 9:52 AM, KoreanHockeyFan said:

I know this is a stock thread, but I wanted to see if anyone has some background on ETFs/Mutual Funds.

 

I've got about 20k in mutual funds right now, but I'm getting quite annoyed with the amount I'm losing on fees. Currently pondering on whether I should move the entire 20k into ETFs or split between Mutual Funds and ETFs. I've heard good things about TD's E-Series mutual funds which have lower fees; maybe I could re-balance my mutual fund portfolio into the E-Series funds or, as I mentioned before, move it into ETFs. 

 

Also want to start getting into stocks so I might pull a couple of grand from the 20k to put into stocks. 

 

Thanks in advance for your 2 cents

 

If you are not knowledgeable enough to completely self direct your investments, my advice for you would be to hire an advisor purely as a consultant. Meet with this person occasionally, listen to their advice and bounce ideas off him/her. With that covered you can self direct your  own stuff.

 

Mutual funds are crap. These days there's an ETF for everything. So there's no need to be paying high fees and or loads on mutual funds.

[nuckin_futz]

22 hours ago, Tortorella's Rant said:

I did the Wealthsimple thing after the garbage end to 2018 which is basically all that - ETFs and index funds. My portfolio guy previously was doing 80% equity and most of it being small market cap. I didn't do my due diligence getting involved here because I knew so little. I only did it because my uncle was also invested with him but he's got a lot of money and he's &^@#ing crazy. But the portfolio manager never asked me any of the basic questions like what am I expecting here, what is my risk tolerance, and so on. So that was his fault too.

So my portfolio imploded big time and he kept collecting the fee. Any dividends? Gone to pay his fee. Then he "sold into the rally and bought into the dip" as he put it I believe. So when he bought TGT at $87 a share then sold it at $70. Then bought again shortly after at $73 and sold it at $78 (not the exact numbers but basically this is what he did) - I still lost money. And this happened with probably a dozen holdings I had. So I was out thousands of dollars. So I called him and asked what the hell was going on with my portfolio. And the above is what he explained. He stated his goal was to beat the index as a fund manager (which is historically impossible in the long term according to that guy named Warren Buffet who has 80 billion dollars and is a strong advocate of the index fund and ETF). Then I questioned why not just employ a buy and hold strategy because now TGT is well over $100 for example - why are you buying companies you don't think will rebound within "a reasonable amount of time" I asked. He didn't appreciate me questioning him because he has clients with over a million and I got a measly 100k so my thoughts don't matter. Then he also mentioned that 2019 could do really well for me but there could also be a double digit loss percentage wise. I don't have nearly that kind of capital to sustain that. Basically I took my money to WS with a polite &^@# you because he still had control over it at the time. I don't question his ability to make money but that was not the right plan for me.

So now my money may not grow as quick as with him in the meantime but I take a lot less risk with ETFs and index funds, pay almost nothing in fees, and keep all of the dividends for myself.

Your portfolio guy sounds like he was just churning your account to generate commissions. If he has a winning trade, you and him make money. If he has a loser trade, he makes money. He can't lose.

 

Sounds like he took you for granted. As a 'professional' he owed you a fiduciary duty which it sounds like he ignored. You did the right thing walking away.

 

My prediction is in a protracted bear market (and one will come eventually) this portfolio guy will lose over half his clientele.

[Tortorella's Rant]

43 minutes ago, nuckin_futz said:

Your portfolio guy sounds like he was just churning your account to generate commissions. If he has a winning trade, you and him make money. If he has a loser trade, he makes money. He can't lose.

 

Sounds like he took you for granted. As a 'professional' he owed you a fiduciary duty which it sounds like he ignored. You did the right thing walking away.

 

My prediction is in a protracted bear market (and one will come eventually) this portfolio guy will lose over half his clientele.

It was explained to us from another individual who used to work in a similar position that everyone's portfolio is basically in a pool. So when the fund manager buys x shares of company they are distributed based on how much your portfolio is worth. So if I got 10 shares in TGT, my mother who I was doing this with, would get 50 shares of TGT because she has more money. Someone with a million dollar portfolio might get 200 shares of TGT. There wasn't any real individual management going on and hence no regard for my concerns or questions. While I do understand this because you are managing dozens or hundreds of clients, I at the same time can't be ignored or seen as insignificant just because I don't have a million dollars. There was also lot of cash sitting around in our portfolio at times too not being spent when it arguably could have. Our funds were all converted to USD at the time I guess to take advantage of some currency difference. But despite that I had a couple different professional opinions on this and neither of them really understood the point of this. 

At least at WS I can talk to someone directly regarding my questions and concerns and not get made out to feel like a pleb. 

[Lancaster]

1 hour ago, nuckin_futz said:

If you are not knowledgeable enough to completely self direct your investments, my advice for you would be to hire an advisor purely as a consultant. Meet with this person occasionally, listen to their advice and bounce ideas off him/her. With that covered you can self direct your  own stuff.

 

Mutual funds are crap. These days there's an ETF for everything. So there's no need to be paying high fees and or loads on mutual funds.

 

54 minutes ago, nuckin_futz said:

Your portfolio guy sounds like he was just churning your account to generate commissions. If he has a winning trade, you and him make money. If he has a loser trade, he makes money. He can't lose.

 

Sounds like he took you for granted. As a 'professional' he owed you a fiduciary duty which it sounds like he ignored. You did the right thing walking away.

 

My prediction is in a protracted bear market (and one will come eventually) this portfolio guy will lose over half his clientele.

I want to add that it's preferable to get an advisor that is accredited as well.  PFP, CFP, CIM, CFA are the standards for the industry.  Each are slightly different from the other, but anyone with any aspiration of a career in financial planning probably has at least 1 and probably even all of them.  

 

Also, just keep in mind that there's a clear difference between someone who is just sell you investment products and someone who is actually going to manage your investments.  When I was at a Big-5 bank, all they did was ask the Account Managers to just sell-sell-sell (most in-house products).  Stay away from the branch level (unless the advisor there has one of aforementioned designations), and go up to someone who is specifically working in their investment and wealth management department, entities like RBC Dominion Securities, CIBC Wood Gundy, etc.  Or if you really want more flexibility, go to actual wealth management firms like Canaccord, Cypress, Raymond James, etc.  There are lots of smaller boutique firms too around town too.

 

Do your due diligence, check out the reviews for each advisors.  Always get a second opinion.  When I was studying finance, a simple rule of thumb for general asset allocation would be 100 - (your age).  If you are 30... then 100-30, then 70% goes into stocks, 30% goes into fixed assets.  Obviously there are different asset classes that overlaps and stuff, plus it's all depending on personal circumstances... but it's a good thing to note.  If you're 40 with 100k to invest and your advisor goes 100% stocks.... reconsider and find someone else.  

[nuckin_futz]

5 minutes ago, Tortorella's Rant said:

It was explained to us from another individual who used to work in a similar position that everyone's portfolio is basically in a pool. So when the fund manager buys x shares of company they are distributed based on how much your portfolio is worth. So if I got 10 shares in TGT, my mother who I was doing this with, would get 50 shares of TGT because she has more money. Someone with a million dollar portfolio might get 200 shares of TGT. There wasn't any real individual management going on and hence no regard for my concerns or questions. While I do understand this because you are managing dozens or hundreds of clients, I at the same time can't be ignored or seen as insignificant just because I don't have a million dollars. There was also lot of cash sitting around in our portfolio at times too not being spent when it arguably could have. Our funds were all converted to USD at the time I guess to take advantage of some currency difference. But despite that I had a couple different professional opinions on this and neither of them really understood the point of this. 

At least at WS I can talk to someone directly regarding my questions and concerns and not get made out to feel like a pleb. 

The set up you're describing is that of a hedge fund. This should have been clearly explained to you at the beginning. It should be in the paperwork you signed. They cannot co-mingle client funds unless the clients specifically agree to that set up. So you had to have agreed to that in writing.

 

There was probably a lot of cash sitting around because statements come out at month end or quarter end and they probably squared up a lot of positions at month/quarter end. So while it may have appeared there was a lot of cash sitting it may have been deployed again rather quickly and you'd really never be privy to that.

 

My guess is the fund's funds were not converted to USD to take advantage of a currency fluctuation. They were probably converted because the instruments being traded were denominated in USD (like TGT). That's just my guess, who really knows why they did that.

 

It sounds like you were part of an actively managed fund .When in reality what you wanted was just to passively invest and let time and compounding take over. Where you are now sounds way more suited to fulfilling your long term goals.

 

 

[mdehaan]

On 9/10/2019 at 10:33 AM, nuckin_futz said:

If you are not knowledgeable enough to completely self direct your investments, my advice for you would be to hire an advisor purely as a consultant. Meet with this person occasionally, listen to their advice and bounce ideas off him/her. With that covered you can self direct your  own stuff.

 

Mutual funds are crap. These days there's an ETF for everything. So there's no need to be paying high fees and or loads on mutual funds.

What would you expect to pay this advisor?

[NucksPatsFan]

Gonna drop money into GameStop tomorrow. 
 

Hey if the guy who single handedly predicted the housing crash in the USA recently bought a large portion of it, it can’t hurt. 

[CBH1926]

12 minutes ago, NucksPatsFan said:

Gonna drop money into GameStop tomorrow. 
 

Hey if the guy who single handedly predicted the housing crash in the USA recently bought a large portion of it, it can’t hurt. 

Valuation dropped 90% in the last 5 years, GameStop was touted as the next blockbuster years ago.

Balance sheet looks semi decent because they sold Spring Mobile to AT&T for 700m.

Plus they are closing 200 stores this year, does anyone even shops at game stop?

Edited September 16, 2019 by CBH1926

[NucksPatsFan]

19 minutes ago, CBH1926 said:

Valuation dropped 90% in the last 5 years, GameStop was touted as the next blockbuster years ago.

Balance sheet looks semi decent because they sold Spring Mobile to AT&T for 700m.

Plus they are closing 200 stores this year, does anyone even shops at game stop?

They’ve been dropping for a while but apparently from what Bury disclosed the release of Microsoft and Sony’s upcoming new platforms in combo with the fact they’re staying disc based should turn the stock around for the next little while. 
 

It’s a relatively cheap stock at just under 4 or 5 bucks, might throw a tiny bit in to start to see what the trends are over the next few months. It’ll be playing with profit money anyways. 
 

Burry is taking an active stance with his investment and trying to direct the board on what is best business strategy going forward and trying to acquire more wireless providers. 
 

I’m really just betting on him rather than the company itself. 

Edited September 16, 2019 by NucksPatsFan