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Globe Investor RRSP season tips, Canadian Tire skepticism and market-timing futility: What you need to know in investing this week

Looking for investing ideas? Here’s your weekly digest of the Globe’s latest insights and analysis from the pros, stock tips, portfolio strategies plus what investors need to know for the week ahead.



Income-hungry investors should consider this often-overlooked corner of the preferred-share market

Falling interest rates in the early part of 2019 mean investors are going to have to work harder to meet their needs for income. Rob Carrick suggests taking a look at perpetual preferred shares, which pay a set dividend and that’s about it. There’s no redemption date in most cases and, unlike rate-reset preferreds, there is no resetting of the dividend every five years to adjust for changes in interest rates. Joel Nagel, managing director of preferred shares at Leede Jones Gable, has assembled a list of perpetual preferred shares from blue chip companies that yield an impressive 5.6 per cent or more (some on this list include Canadian Utilities, Emera, Great-West Lifeco, IGM Financial and Westcoast Energy).

More from Rob Carrick: The high cost of long-term care in retirement and the important lesson for investors from January’s bix TSX rebound. Also, Carrick’s ETF Buyer’s Guide for Best bond funds.

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The top 10 Canadian equity analysts of 2018 – and their most profitable picks

There are thousands of sell-side analysts publishing piles of stock recommendations every day. But not all these analysts are worth following. The key question is: how do you know who to trust?

TipRanks, a website that tracks and ranks analysts’ recommendations, helps investors follow the recommendations of best-performing individuals with a proven track record for success. Using this data, TipRanks has published a list of Canada-focused stock pickers who had the most success in 2018. Read the list of the top 10 Canadian analysts and their most profitable stock picks (like Bombardier, Dream Global and Corus Entertainment).

Here’s proof that you’re wasting your time trying to time the market

Trying to time the market might be tempting, but it’s failure-prone. Most investors should focus on the fundamentals instead. If you’re like Norman Rothery, you’re probably wondering whether the Canadian market yielded similar results. To test this situation, he looked at three model portfolios that put $1,000 into the S&P/TXS Composite Index each year from the start of 1977 to the end of 2018. The lucky investor bought in at the lows for the year, the unlucky investor bought in at the highs, and a steady investor bought at the start of the year. Here’s what Rothery found - which may entice investors to look for ways to reduce fees, taxes and other trading frictions.

Canadian Tire earnings need a healthy dose of skepticism after accounting changes

On the day Canadian Tire Co. Ltd., released third-quarter results in November, investors rewarded the one-two punch of earnings expectations being exceeded and a dividend hike by sending the shares up 12.5 per cent at one point. But in the days that followed, the stock gave back those gains, suggesting there was more to the numbers than met the eye. Canadian Tire released its full-year numbers Thursday (which showed that a mild December hurt its sales), and we may have an possible explanation, David Milstead writes.

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Take heed of the 80-per-cent rule this RRSP season

How much do you need to save for retirement? Well, it depends on your lifestyle. Consider Prince Jefri Bolkiah, a member of the Brunei royal family. Prince Jefri turns 65 this year – the typical retirement age. During a period of about 10 years, he spent US$2.7-billion on aircraft, yachts, cars and jewellery. With inflation, who knows what his spending looks like today? Somewhere slightly above the average Canadian’s budget, I expect. Given that it’s RRSP season, and the contribution deadline for 2018 is coming up on March 1, it’s a good time to think about the value of investment assets you’re going to need on the day you retire, Tim Cestnick writes.

What investors need to know for the week ahead

Companies releasing earnings this week include Argonaut Gold Inc., Cheesecake Factory, GoDaddy Inc., Altus Group, Hydro One, Royal Bank of Canada, Wayfair.

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Markets are closed in Canada and the U.S. on Monday. Also this week: Canada wholesale trade for December, Canada ADP employment report for January.

Looking for more investing ideas and opinions

Which defined benefit pension payout option is best for your retirement?

TD Asset Management’s CEO has never seen sentiment towards Canada this negative. Here’s where he’s seeing investment opportunities

Why I’m not putting my RRSP contribution into equity markets any time soon (and the outlook for utility stocks after the big rally)

My husband and I have four maxed-out credit cards. How can we fix our finances?

Oil price risks have shifted to the upside

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