Bill Carrigan is a technical analyst with Getting Technical Info Services. His focus is technical analysis.
BMO MSCI Emerging Markets Index ETF (ZEM TSX)
Hold this ETF to gain exposure to markets such as Taiwan, Brazil, India, South Korea, Mexico and Malaysia. MER is good at about 0.25%.
BMO S&P/TSX Equal Weight Oil & Gas Index ETF (ZEO TSX)
This ETF is a basket of 15 Canadian energy producers – a clone of the S&P/TSX Equal Weight Oil & Gas Index. MER is OK at 0.55%.
BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH TSX)
This ETF is a clone of the Dow Jones U.S. Large-Cap Health Care Equal Weight index – basically a basket of large pharmaceuticals, biotech and health care services. MER is OK at 0.35%.
Past Picks: Aug. 20, 2013
iShares S&P/TSX Capped Materials Index Fund (XMA TSX)
A basket of metal miners, forest and potash producers.
Then: $13.83; Now: $13.61; -1.59%
Total return: -0.61%
Lundin Mining Corp. (LUN TSX)
A copper miner.
Then: $4.57; Now: $5.61; +22.76%
Total return: +22.76%
ATS Automation Tooling Systems Inc. (ATA TSX)
An engineering firm.
Then: $12.30; Now: $14.69; +19.43%
Total return: +19.43%
Total return average: +13.86%
Equity investors with at least a 10-year time horizon should just get invested and stop trying to “time” the markets.Why? Since 1970 – 44 years ago – there have been only 4 “granddaddy” bears – 1973, 1987, 2000 and 2008 – subsequently following each “crash” the major stock indexes advanced to new highs. The current 2009-2014 Bull has been led by the major U.S. stock indexes, which are now displaying some momentum decay. Long-term investors should now reduce their U.S. exposure and retain exposure to Europe and the Asia Pacific markets – and increase exposure to the emerging markets.