Saturday, September 15, 2012

Quantitative easing

According to Reuters, "the U.S. Federal Reserve's third round of bond-buying could ultimately rival the size of its first huge quantitative easing, which was widely seen as boosting growth."

A lot of investors were betting Fed Chairman Ben Bernanke would usher in another round of QE and they were right. It delivered the much anticipated solid kick to the stock market keester most anticipated. Nice.

If you bought CET when I first starting taking about this stock, you've done well. If you waited and bought in when CET dipped below $5 you may be ready to lock in some of your profits. I bought in when I first mentioned CET and later I bought more for my TFSA. My second purchase is up almost 30 percent. My initial investment in CET is up about 16 percent. That is still a nice pop. I'm going to hold on for awhile. I like the dividend.

What about SLF? I'm up almost 18 percent. And you? In the same vein, Manulife Financial Corp. may be another smart move. The dividend squeaks by with 4.1 percent. I need 4 percent. I may buy some SLF Monday as it closed at about $12.64 Friday. I've been following MFC for awhile and if it climbs too much it will not meet my needs.

Do you recall my REM tip? Despite being an U.S. ETF, it is up 14 percent since I bought it and it still yields 10.22 percent. If your financial adviser tells you that nothing is delivering a high yield in today's market, ask about REM. (Morningstar is still claiming that REM is a low risk investment.)

Lastly, I bought a lot of PWT when it got down into the $12 and $13 range. I'm averaging down. This is not something that I do with comfort. I only buy when I think a stock should be heading up. When I average down, it means I have misread the stock and paid too much. And with PWT, let me assure you that I paid too much. Oh well, it pays a nice dividend and as the price rises the yield as a percentage based on the stock price drops. It is now down to 6.8 percent. I'm feeling there is some chance that the dividend will NOT by cut. I'm seeing PWT climbing in the coming months and at some point in the near future I hope to be out.

I'm still watching LIM. I find it interesting. If I had bought some when it was at $1.39, I'd be laughing. I didn't buy and I'm not laughing. I hope some of you picked it up and are now enjoying the pop which can be more than 17 percent for those who timed it right.


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