ETFs - I Bought Some

10/23/10 - Back on Oct 9th, I indicated i would be getting into Exchange Traded Funds (ETF) if they were a relatively safe way of investing in the shorter term (important to those over 60).

After extensive reading (i still do not fully understand how ETFs work), i decided to buy these three:
1. HBP S&P/TSX Global Base Metals Bull + ETF
2. HBP MSCI Emerging Markets Bull + ETF
3. HBP COMEX Gold Bullion Bull + ETF

Here is a chart showing how most ETF type gold, base metals and emerging markets stocks are doing right now.


It still appears to be a good time to invest in precious metals and base metals, as world demand (China and India) is on the rise.






Let's see how they do ...

Investing - buy when it snows and sell when it goes

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10/23/10 - Here is a very unusual way of timing your stock market investments!

Have you tried it?

To recap the article (for those worker-bees), do seasonal investing ... buy S&P/TSX index (such as ETFs) in October and sell in May.

In their analysis, $10,000 in S&P/TSX index from 1977 (buying in October and selling in late May) to 2010 would havew produced $176,000.

Not knowing what the markets would have produced over that time, this still looks like an excellent ROI.

Canada banks also have this type of trending for Oct-Dec.

There is a seasonal ETF - Horizons AlphaPro Seasonal Rotation ETF - for those of you who don't have time to check other areas. It launched last November and has returned 11% as of last week (compared to 8% for the S&P/TSX index).

Caveats:

1. use small amounts of money to do several seasonal trades   

2. diversify

Hydro - Time-of-Use Pricing

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10/21/10 - To put my previous item (below) in perspective, most problems are also opportunities - pessimist vs optimist.
PowerStream has sent us our usage details for August and September, in preparation for our move to TOU pricing November 26th.
They also include average daily consumption ... but use the summer rates for the analysis. As the winter rates are Nov-Apr, it would have been more useful to use them. 


Now that we know when the new rates are coming, we have an opportunity to take advantage.

Here is a copy of the rates brochure sent to everyone being impacted by smart meters.
  
















10/19/10 - Has it started in your area?
This article in the Star today indicates a small decrease in electricity cost starting November 1st ... but probably not for time-of-use (TOU) Ontarians.
The time-of-use will, in fact, raise what we pay ... unless we drastically change our habits.
I understand washer/dryers are being manufactured with timers, to help take advantage of lower off-peak rates.

Here is an exert from the PowerStream site indicating the timing for TOU in Markham, Vaughan, Richmond Hill and Aurora.

Here are the rates to be used at the various times of the day/week. 
Note the highest rate ($.099):
1. May-Oct - 11am-5pm
2. Nov-Apr -  7-11am and 5-9pm


Our area of Markham begins TOU after September 26th.
Here is a link to the Time-of-Use Rates Quick Guide, for your reference.
Get ready for this more expensive approach to paying for necessities! 

Home Solar Panels - is it time?

11/19/13 - Are residential solar panel roofs viable today?

The OPA MicroFIT site indicates a much lower rate (effective Jan 1,2014, for any new requests not approved before Aug 26, 2013) for the roof top Feed-in Tariff.
The 2014 rates are $.396 (less than 10kW) to $.329 (greater than 100 kW). 
The 2013 rates were $.549 (less than 10kW) to $.539 (greater than 100kW).
The 2011 rates were $.802 (less than 10kW to $.539 (greater than 500kW).

As you can see, the price per kW is dropping every year now ... and much less range in price between 10 and 100 kW.

The microFIT rules (version 3) have been altered as well and you will need to discuss these details with a qualified Ontario installer.

Here is an analysis of installation cost and ROI from back in 2011.

Here is blog of an installation in Vaughan in 2012. Good details. Hopefully, design has changed since then, as I am not impressed with the look.

Here is the OPA microFIT questions and answers site.

Lots to consider....


10/17/10 - I have been watching home installation costs for solar panels for some time now.

Back in January, i added an item to this blog about residential solar panels.

Also, a while ago, i had read the price of solar panels was decreasing due to a very large supply.

I am also aware of the price of $.802 per kilowatt hour for the FIT (Feed-in Tariff) pgm. This rate is guaranteed for 20 years!
Is it any surprise it is very difficult to be accepted by the OPA (Ontario Power Authority) for this pgm???

There are, according to this article (The Toronto Star - Oct 16th), approx 23.000 applicants for this project totalling approx 15,000 megawatts of capacity ... but only 15% have been approved to-date. Are you surprised?


The folks in this article spent approx $42k to place the panels on their large roof (27 panels).


Stay tuned. As the situations improves, i will update this item.


Hopefully, i will be able to install and feed the grid ... before i am so old i forget the value of this project...


BTW, if Vaughan is reviewing this article, i would be interested in the Australian perspective.

The best automobile driver

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10/17/10 - Finally, we have located the best driver ... cannot be distracted or angered or incompetent. 
This article appears in the New York Times section of the Toronto Star today.
This driver has much faster (and accurate) response time and unerring logic.
As a result, cars will consume less fuel and our roadways will be able to handle more vehicles more safely.


As you might expect, the driver cannot be human!


There is no company better suited to work on this solution than Google. 


The good part is it can be introduced slowly and will easily demonstrate how inefficient human drivers are!  


In my opinion, it is inevitable.

Osteoporosis - how to minimize risk

10/14/10 - You are probably aware of what this disease can do without you knowing it. One in four women and one in eight men in Canada over 50 have it. Perhaps a few of you (maybe myself included) are suffering from it - with our back problems.
This article (left-click to enlarge) from Tuesday's Star highlights the need for Calcium and vitamin D supplements particularly in those over 50 (men and women).
The recommended intake from all sources daily is:
Vitamin D - 800-2,000 IUs per day
Calcium    - 1,200 MGs per day

The Markets - Oct 9, 2010

I am getting back into Mutual Funds (MFs) and Exchange Traded Funds (ETFs) and have decided to record weekly results, in an effort to gain more understanding of what to invest in ... someone who only has a few years remaining to play with their RRSPs.

This article from the Star focuses on the "dominant theme" approach for the long-haul investor. 
It should work for the shorter-term investor (5-10 years) also.
It clearly indicates energy and resources as the prime areas to invest in for the future.
If you haven't placed any retirement funds in these areas, it is not too late.
I have CIBC Precious Metals and TD Resource MFs and they are doing nicely at this time.

This article shows to best/worst 5-year funds and it clearly indicates precious metals at the top. There doesn't appear to be any way for gold to go but up. Resource stocks are also in this group and with India and China developing there will be a continued need for copper, aluminium and other base metals.

ETFs are something I have wanted to look into as a shorter-term investment.
While I don't completely understand them, I sense they are slightly less risk than MFs.
The one I am interest in and will probably buy this week is HBP NYMEX Crude Oil Bull + ETF ... after more analysis (10/20/10 - glad i didn't invest).


If you have other good ideas for shorter-term mutual fund investment, pls make a comment or send me an e-mail.

Shock and Awe

Hilary Doyle was the MC at Greg and Indira's wedding Sept 18th.
She was a great MC and has lots of self confidence and appears quite care-free and happy about life.


We watched the first episode of Shock and Awe last night and it does appear to have a place in the TV rooms of our children who should better understand investments.
If they can continue to find investment opportunities and methods of TV teaching of our young adults, this show may have a future.
Maybe our children, because of this program, will become better investors than us!