Skip to main content

Globe Investor Smart TFSA strategies, high-growth stocks and a buy-and-hold utility: 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.



Smart and not so smart things people are doing with their TFSAs as the contribution limit rises to $6,000

The long wait for a higher TFSA limit is finally over, Rob Carrick writes. You’ll be able to contribute up to $6,000 to a tax-free savings account in 2019, up from $5,500 in five of the six past years. The limit was set at $10,000 in 2015, then dialled back for the next year. To mark the occasion of a higher limit, let’s look at smart and not so smart things people are doing with their TFSAs. In short, there is much more activity related to contributing to TFSAs than there is in withdrawing money. The mistake many people make is to think you’re failing if you can’t get to the limit. And pro tip: Nobody needs 10 TFSAs. Two or three, max. The fewer accounts you have, the easier it is to mind your fees, the investments inside your TFSA and the interest rates you’re getting on savings.

TFSAs by the numbers

A statistical profile of TFSA ownership using the latest numbers (from the 2016 tax year)

Total number of TFSA holders 13.5 million
Total number of TFSAs 18.3 million
Average TFSAs per person 1.4
Total number of TFSA holders who contributed to a TFSA 7.8 million
Total number of TFSA holders who maximized contributions 1.4 million
Total number of TFSA holders who made a withdrawal from a TFSA 4.1 million
Total dollar value of contributions $55-billion
Average number of contributions per person 14.5
Average contribution value per person $7,014
Average number of withdrawals per person 4.8
Average withdrawal amount per person $6,488
Average unused contribution room $27,653
Average fair market value per person $17,286
Total fair market value $233-billion

Source: Canada Revenue Agency

Read more Rob Carrick: CPP improvements start in 2019: How much more you’ll pay, and how much more you’ll get

Story continues below advertisement

25 high-growth stocks that can withstand volatile markets

Finding secular growth stories – those stocks representing above-average revenue and profit growth and with high probabilities of continuing market-beating growth in the future – is the holy grail of equity markets, Scott Barlow writes. Companies capable of sustaining strong growth paths without the help of falling interest rates or strong global economic growth are particularly attractive in the current period of market volatility. The research team at Morgan Stanley recently released its 25 top picks of secular growth stocks for the next two years. The resulting list includes some of the usual suspects such as technology giants Amazon and Alphabet,, and credit card companies Mastercard and Visa. Surprises include cosmetics retailer Ulta Beauty, instructional software provider Pluralsight and animal health product manufacturer Zoetis.

Why this rallying Canadian utility is a long-term buy and hold

Buying good companies when they are out of favour can be a profitable investing strategy, John Heinzl writes. Case in point: Emera. In mid-October, Emera’s shares were trading at about $39 – roughly a dollar above their 52-week low. Since then, shares of the North American utility operator have gained nearly 16 per cent. Over the long run I expect that investors will be rewarded with further capital gains and dividend increases. Here are five reasons I consider Emera a long-term hold. (Disclosure: I own the shares personally and in my model Yield Hog Dividend Growth Portfolio.)

Read more John Heinzl: Aphria, Roots and more investing stars and dogs for the week

What this $600-million value fund manager has been buying, selling and thinking about markets

Himalaya Jain started preparing his portfolio for a potential market downtown in the spring, selling down equities and adding some alternative investments as a hedge, Brenda Bouw writes. The portfolio manager and wealth adviser at the Rosedale Group, a division of Scotia Wealth Management, has also been warning clients that the markets may be heading into a period of lower returns, as compared with recent years. Still, he doesn’t believe we’re headed for a repeat of the 2008 global financial crisis. The Globe and Mail recently spoke with Mr. Jain, a self-described value investor, about what he’s been buying and selling and an iconic company he wished he owned.

Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up here.

A low-cost global investing giant is about to launch a robo-adviser in Canada

Global investment giant Vanguard Group is set to launch a Canadian robo-adviser service within the next 18 months in a move that will bring a formidable new competitor to the increasingly crowded field of digital portfolio management, Clare O’Hara writes. Vanguard Investments Canada Inc., the third largest provider of exchange-traded funds in the country by assets, will introduce a digital online advice platform for retail investors, according to three sources with knowledge of the plans. The online platform would be the first digital advice service launched by a major independent asset manager in Canada, and the first in-house direct-to-consumer offering for Vanguard Canada. Currently, Vanguard mostly sells its products in Canada through financial advisers.

What investors need to know for the week ahead

In the week coming up, the British parliament votes on the Brexit deal on Tuesday. Economic data on tap include: Canadian housing starts for November and building permits for October (Monday); U.S. inflation figures for November (Wednesday); Canada’s new housing price index for October (Thursday); Canada’s new motor vehicle sales for October, U.S. retail sales, industrial production and capacity utilization for November, and U.S. business inventories for October. Companies reporting their latest earnings include Adobe Systems, Costco, Empire Co., Transat A.T. and Transcontinental.

Looking for more investing ideas and opinions?

Six bargain energy stocks, if you can stomach the ride

The bond market is now sending a clear signal: Go with a variable-rate mortgage

How one Quebec single mom, 32, taught herself the ins and outs of investing

David Rosenberg: Ignore the yield curve ... at your peril

Seeking shelter from the market turmoil? Here are some ideas for Canadian investors

An old friend to dividend investors is providing strong defence as stocks fall

Story continues below advertisement

For bargain hunters, these two small Canadian banks offer big potential

The split personalities of split shares

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.
Comments are closed

We have closed comments on this story for legal reasons or for abuse. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Cannabis pro newsletter