Stock market returns in November delighted investors. While we don’t know what we will get, there is hope that the broadening rally (including more stocks and sectors) will give it some legs into December and 2024. Bonds and other assets classes are also pitching in – the everything rally they call it. As I’ve offered on this blog, the markets have not really gone anywhere in the past 28 months or so. And that’s normal. Markets can stall or decline for years on end. Accumulators should keep dollar cost averaging as we follow a November to remember.
It was nice to see the Globe & Mail pick up on my – A November to remember for stock markets. 😉
They’re calling it the everything rally. Well everything except oil.
Also posting gains on the month: European stocks, emerging market stocks, precious metals, small-caps, large-caps, growth stocks, value stocks, REITs, high-yield debt, unprofitable tech and cryptocurrencies. The only major exception was oil prices, which have dropped sharply over resurgent U.S. production and the potential for lowerglobal demand.
As I pointed out last week the rally is moving beyond the Magnificent 7.
That might be very important if the stock market rally is to have legs. It will need more legs.
Best performing stocks over 5, 10, 15, 20 years
Here’s a very interest table. The best performing U.S. stocks over the last 5, 10, 15 and 20 years. You don’t have to have owned these stocks to have very generous gains, but it certainly helps the cause. Certainly our Apple and Microsoft, and a few other growth holdings such as Nike and Lowe’s will contribute greatly to our retirement income.
In the Summer I wrote about trimming some of our winners to create retirement income. Microsoft has delivered even more generous gains since the Summer. I’m all good with that.
More from Charlie …
The oil slick
Oil and gas stocks slide from best to one of the worst performers.
But now Wall Street analysts are bullish on 2024. Oh no? Ha.
And here’s the oil stock buyback comparison from 2022 to 2023.
And let’s check in with Dividend Earner. Now don’t let the blog title lead you astray. DE is largely a growth investor, after having gone down the yield chasing route.
Here is Dividend Earner’s latest portfolio update.
More Sunday Reads
At Findependence Hub, Jonathan Chevreau relays a 2024 outlook, as we have to humbly admit that we have no idea as to what will happen – especially in the U.S. That economy and stock market continues to confuse and infuriate “experts”.
This week I updated the returns for the wonderful asset allocation ETFs in Canada. We call those ETFs game changers. You can access well-diversified global portfolios in one ETF, with fees in the range of 0.20% to 0.28%. In that post I offer the returns for the top asset allocation ETF providers; you’ll also see the comparisons between providers by risk level. This is the only blog that ‘does that’.
If you want low-fee ETF portfolios with advice and planning consider Justwealth – Canada’s top robo advisor.
At My Own Advisor Mark asks if the party for GICs is over. The party might not be over but there’s a few drunk guys asleep in the corner. And they’ve been asked to turn the music down.
Once again, this week I updated the GIC rates at EQ Bank with a few more cuts. That said, for registered accounts there were some increases thrown in the mix. Of course, there’s a way to hedge every financial or economic event. If you’re worried about falling rates for your cash and fixed income basket, hold some bonds that will go up in price as rates fall.
And let’s not forget why retirees hold bonds, cash and GICs.
Here’s the week in review from Dividend Hawk. I shared the dividend haul (with Hawk) for Enbridge, Johnson & Johnson. The post also offers the stock stories and blog posts of the week.
At FiPhysician doc offers Retirement: A false dichotomy.
Banker on Wheels has the books Wall Street doesn’t want you to read this holiday season. Included in the mix of posts and podcasts is this offering from a Wealth of Common Sense. Investors are greatly shaped by the period when they begin investing. Those who get their fee wet in a boom remain more optimistic, while those who start in troubling times remain more grouchy.
Most people assume living through the inevitable bust that follows a boom would leave a sour taste in your mouth.
But the opposite is true. Investors who opened accounts during boom times actually retained a higher allocation to stocks for years to come.
Calls on Canadian banks
The Canadian banks have reported earnings, and Dan at stocktrades.ca offers the best Canadian banks to buy for 2024 and beyond. You can also do your bank stock investing at Million Dollar Journey.
Of course, banks stocks are staples for Canadian investors. If history repeats, there’s very good value to be had from today’s prices. You’ll find the banks in the Gen Y Money portfolio udpate.
Dividend Daddy chimes in with …
In the Globe & Mail, Scott Barlow offered that CIBC bank analyst Paul Holden is not impressed with the valuation offering.
The banks are now trading at a 5-per-cent discount to 5-year average P/Es [price-to-earnings], with consensus EPS reflecting a soft landing. We do not find the discount compelling considering potential downside risk to EPS if the Canadian economy does not perform so well next year. We only have one outperformer in the sector, National Bank, premised on its defensive characteristics.
As I’ve reported in this space for many years, I continue to add to the financials in my wife’s accounts and in my TFSA. As always we should pay attention to any concentration risk, and keep greater geographic diversification in mind.
BUY ETFS AT NO COST AT QUESTRADE
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Help yourself – cut the crap investing
Earn a break on fees by way of many of these partnership links.
CANADA’S TOP-RANKED DISCOUNT BROKERAGE
Cut the Crap Investing readers can earn a break on fees at Questrade by way of that partnership link. At Questrade, you can buy ETFs for free.
I have partnerships with several of the leading Canadian Robo Advisors such as Justwealth, BMO Smartfolio, Nest Wealth and Questwealth from Questrade.
Here’s Canada’s top-performing Robo Advisor, Justwealth. You can get advice, planning and l0w-fee ETF portfolios all at one shop.
Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.
CASHFLOWS & PORTFOLIOS
The self-directed investor might consider the service provided by Mark Seed from My Own Advisor. He runs Cashflows & Portfolios where they will provide options for that optimal retirement funding strategy. That service is provided for a very reasonable fee.
If you do head to Cashflow & Portfolios (as do many Cut The Crap Investing readers), be sure to tell them Cut The Crap Investing sent ya.
OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 2.5% and 3.5%. You’ll find some higher rates on GICs, recently updated and increased to 3-5%. They also offer U.S. dollar accounts. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …
The Tangerine Cash Back Credit Card
For October we received $50 in cash.
While I do not accept monies for feature blog posts please click here on the mission and ‘how I might get paid’ disclosures. Affiliate partnerships help me (try to) pay the bills for this site. But they don’t, ha. That will allow me to keep this site free of ads and easy to read.
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