M!tch asked in Business & FinanceInvesting · 1 decade ago

Canada - I'm looking into investing. Some help?

As far as I can tell, the current market is going down. Fears of a recession in the US and the likes. I'm thinking of buying a bank. Based on my research I see that Bank of Montreal is having some problems, are they temporary? I guess we'll mostly see when the quarter ends. Yet BMO-T has not been growing its profits over the past 5 years, although dividends have been growing. Royal Bank seems to be undervalued at the moment considering its dividend growth and consistent earnings per share increases over the past five years (with a share price that has been consistently declining.) Any help from other Canadian investors? (I am 17, and this would be my first purchase, I've read 2 books on investing, and am currently on my 3rd.)

2 Answers

  • 1 decade ago
    Favorite Answer

    Mitch, I'm not a Canadian investor but I can't stop myself from adding a little something after I read your question...and it's simply this : Why bother? I mean why jump into a " rapids" on your first swimming experience? There are so many areas you can " stick a toe in"...why mess with the sector that's in turmoil?

    If you're looking at dividends...your Canadian " energy trusts" are fabulous... I've got PWE paying 15 something percent and HTE at better than 17.

    If you want growth rather than the divvies..POT ( Saskatchewan) ..has been rising for months and months...no end in sight..(.feeding the world,etc.)

    Tech also ready for a comeback...RIMM ( another one of your Canadian beauties) is head and shoulders above most competition...shook off the vaunted iphone like water off a ( Canadian) duck's back.

    Make some nice profits on some winners...save the gambling on " maybe's" for when you're playing with a bundle of profit.

    Good luck...

    P.S. You guys gotta be the best " neighbors" anyone could ever ask for... even though we're such buffoons !!

  • I second Jeb's answer. There's still a lot more that could go wrong in financials, and I don't think we'd be looking at a record rebound. Tech/Bio-Tech are still hot areas. Something good still has to happen in manufacturing as well.

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