June 4, 2013 Comments

Our report on global exchanged traded funds has been updated.

Most of our stocks were down today. The S&P 500 was down 0.6%, Toronto down 0.1%.

Toll Brothers was down 2% to $32.92. We last rated it Speculative Buy at $34.13. And it is speculative given the high P/E ratios but would definitely be inclined to buy if I did not already own quite a heavy position in it. There is chatter about the housing recovery being “fake” because homes are being bough by investors or because the market is propped up by the Fed. On the other hand I read that homebuilders have a hard time finding enough workers and Toll Brothers reported it was increasing the home prices. There are ALWAYS reasons for fear and there is ALWAYS The possibility of a sharp market correction / crash. But many investors have learned that over the years accepting risks and accepting that portfolios will decline from time to time is usually quite rewarding in the end. Being too fearful and too worried about capital preservation is a mindset that can forego a lot of gains. You end up sleeping better I suppose with strategy but you seldom end up ever sleeping in real luxury with a too cautious approach.

For Canadian investors, the decline in the Canadian dollar today was beneficial to U.S. holdings.

 

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