Core Gold DMMIF

re - dividend strategy

[upmarkets]

I wasn't referring/suggesting to buy banks tomorrow You note I said "as markets dip" ( shorthand for correct or fall significantly). Instead of GIC's, I was pointing out the strategy of buying and holding the few best quality stocks you can find, that generally have regular increases in dividends and you keep them forever and increase your return. Most people aren't clearly advised of this. ( you can feather out a little to add other stocks ) This definitely doesn't mean buy and hold all stocks ( and a best pick can permanently stumble and be a sell ) Per Driscol model. Banks usually fit this well. You enter when a bear market is on and banks have been hurt. ( Driscoll has 30 or so long term stocks and some pay him 45% dividends on original capital ) And I wasn't necessarily referring to US banks. Although they may be buys in 1 to 6 months Same with some brokerages and housing in 6 to 9 mo when we get a pattern And a good entry/add point coming soon for banks ( once every cycle of 3 to 6 years). Canadian banks have been more stable than US but I wouldn't buy them just yet either The American system is meant to have wide swings as American nature is to have lax regulations/philosopy. The authorities complain about the barn door but do little to set logical regulations in advance. ( 10% of the USA mortgage system is a disgrace and outright embarrassment to any American). D Driscoll picks some good international banks ( about 5 ) ( z:IBN z:BIL ) And then you don't necessarily sell in 4 years , from a cash account, on the next pullback because you pay C G tax. You would consider a double inverse bank sector etf to hedge ( or put options once every 4 years ), allowing you to keep your div stocks ( your divs would have grown giving you a better long term return for retirement ) In 10 years your 4% divs are now 7% ( and your stock will be up too ) Better than a bond or GIC . Contrary to popular advice , imo , you play your cap gains stocks and trade more, in an rrsp or ira to compound tax free. ( at least in a bull market) Particularily if young or a new small savings plan Brian Acker is starting to buy stocks like C and ML and BSC as they have fallen to undervalued per his stock model. I would wait longer myself. Also today, K Oleary started buying beaten down larger US banks ( also watch one of the regional US bank etf's for a bottom ) We actually need some formationcof a bottom , so Acker and OLeary are buying value but without a bottom pattern By the time "they figure out the visibility" of the US mess , the stocks will be up Andy : and how many of friends realize most of their pension cheque comes from either reits , private linited partnerships or stocks. And a portion from bonds and likely none from GICs A nimble rrsp rotating 25 small caps can outperform a $5 bil pension that is limited to 1000 world stocks Regards all U