New Book on Investing
Just a quick update on items I didn’t get into the month end report.
October Performance – so far
Things are looking up. I wouldn’t jump to the conclusion that we are ready for another sustained rally, but it does look like the markets may have hit their bottom. The first week of October saw all markets rise close to 5% however we are still well off the highs we saw earlier in the year.
There has been some indication that oil production if finally falling a bit (not much) which makes the recent oversupply less problematic and has resulted in a modest rise in oil prices. Some analysts are still worried that oil could still fall again.
Regardless, for me it feels like it may be a good time to look at adding to my portfolio and I may well do a few purchases this month. As a result I am sharing my latest detailed analysis of the top stocks. See link below.
Millennials and Money
Thanks to David in Thailand for providing the following article on how Millennials deal with money.
Click on the link below to get my latest analysis.
I have a bit of cash that I want to put to work and I usually use October as my purchase point. I looks like it might be time to do some buying.
Again, this is my crude attempt at trying to decide what to buy and sell at a given time. The top items on the list would be good buys, while if you are looking to sell stocks, the bottom ones would be the place to look first.
Keep in mind that this is an analysis of stocks that are good to own. So every one of them is worth having in your portfolio.
I would use this as a guide, but not the gospel. Once you have preliminary decision on your buys and sells from the list, do a bit of looking for yourself to see if it is the right thing for you.
For example some of the top of the list items (buy now), are rated quite low by ValueLine for timeliness. Many of the oils stocks fit in this category due to the low price, but I am not necessarily advocating buying oil stocks right now.
Feel free to send me questions.
Valeant – VRX.TO
This pharmaceutical company was the darling of the TSX. I referred to it several months ago as a contributing factor to the artificial rise of the TSX. A year ago it was trading as low as $130 per share and climbed to $346 per share in early August. The company and the numbers did not support this level of share price and I suggested this was the type of stock to stay away from. Today it is trading in the $212 to $240 range – a huge drop from its peak. Even at this reduced level, its PE ratio is near 100, which is well above the danger range. This kind of stock, in spite of the hype it gets, has no place in my portfolio as it doesn’t even come close to my criteria. Avoid these hyped stocks like the plague – play the lottery or go to bingo or the casino instead.