Enter 2023

 

All the best in 2023 and good health.

In the stock world, the US S&P 500 ended about 20% down and ranked with the 2008 market crisis for that year. I don't own US stocks currently, only indirectly thru Canadian ETF/Funds. 

In Canada, with Toronto's TSX ... our Canadian market fared better being down about 8% for the year.

There's lots of fear, doom and gloom in the news. However, I find it a good time for bargain shopping with the Stocks with lower prices then in an "up" Market while looking at a stock and wondering if it has peaked and expensive compared to the norm fluctuations. Buying at that time would probably sets me up for a loss when markets take a tumble and the stock price falls.

My main interest is in companies and banks that can handle the cash dividends they pay out to holders but I try to avoid overpaying for their stock during a growing Bull market .. or what they call "overvalued" for the average price range over a certain time frame. It's not easy or near impossible to "time" the market moves.

I always think of the king investor, Warren Buffet and how he approaches these Bear markets like today.

Warren Buffett has advised investors not to succumb to fear, and to view periods of panic in financial markets as opportunities to scoop up bargains.

2023 is also the start of a new BTSX; 10 top dividend paying stocks to browse over and I'll add that to my next article. Top names in Banks, Telecom, Utilities, Energy and Insurance related.

Although, I'm watching the crypto scene from the sidelines after it tanked this year and will probably continue to create fear in that marketplace for awhile with the unrelenting news about the downfall of FTX and SBF's upcoming trial, starting next week. Won't be good for him but see if he pleads guilty or not. Meanwhile, coins that belong to investors continue to be shuffled around and out of his defunct sites. Insiders I assume but who knows. Millions worth so far.

I must say, I'm impressed with Bitcoin while it continues to hold around the mid to low 16,000 USD range so far. Impressive where I thought it would continue to fall and that could still happen but there's more going on with Bitcoin world wide then some bad actors with defunct exchanges. Eventually the smoke will clear from all this damage and it will be quiet again for awhile with a possible bump in BTC prices in the future along with ETH.

 

An Investing Letter

 

For 2022, an investor's Christmas will probably include the Grinch, robbing profits and gains out from under a Christmas tree full of stock ornaments they had from last year.

However, those that only hold stocks that pay a yield that didn't see dividends cut and some climb aren't too worried about the Grinch although most portfolios are down in value for now.

The Blogs I read on the right have many of the same stocks the I currently hold and on my Watchlist to buy in the months ahead. Top Canadian banks, utilities and oil related plus Telecoms are my main interests. Buying more with the cash dividends they produce at today's prices will bring about a higher portfolio value with future "up" cycles in the stock world. A form of compounding over time.

I like this letter to wrap up the year by John Heinzl who writes for the Globe and Mail on Tawcan's Blog.

Good advise and not only for the young but those new to investing of all ages. It's always a learning curve I find but avoiding "get rich quick" schemes and thinking long term is a good starting point.

A quote from that letter ...

Your portfolio is like a bar of soap, the more you touch it, the smaller it’ll get. Therefore, learn to be patient and let your money compound. Let your investing decisions be based on logic and reason, not on emotion and impulse. If you are patient and allow compounding – what Einstein referred to as the eighth wonder of the world – to take place, you will be richly rewarded.

Have a Merry Christmas and good fortune.

Prepping for the Holidays

 

The Christmas holidays are approaching fast, specially for those not prepared yet like yours truly. Everything is more expensive but eventually it will be time to what they call, pull the trigger on my debit card but not to a point it overheats.

Part time work gets me out of the house and connect with fellow employees and interact with new people as well during a busy day where I work. The pay cheques certainly don't go as far as they used to in 2022 while weighing full retirement, which seems to be a common theme with folks my age.

When home, I keep busy and look at the latest news ... primarily with the Stock world. Within the crypto scene, it can't seem to shake the fallout from the quick collapse of FTX and now US authorities are gunning for Binance's top dudes who run that exchange for various reasons. Certainly, a low level of confidence lately in those outfits that wheel and deal with people's money deposited into various wallets, schemes and plans.

In Canada, regulators are making new rules which exchanges/wallet providers must adhere to as they digest all the news from down south and around the world in that area. A couple snippets from a recent article aimed to protect Canadian investors. Keeping in mind bankruptcies can still occur unfortunately.

On the heels of the spectacular collapse of global cryptocurrency platform FTX, Canadian regulators have announced a co-ordinated oversight regime that will require all crypto trading platforms seeking registration to sign undertakings to comply with investor protections before they are formally under regulatory watch.

This pre-registration “undertaking” must include a pledge that Canadian clients’ assets will be held with an appropriate custodian and that these assets will be segregated from the platform’s proprietary business.

Crypto platforms will also be prohibited from offering margin or leverage for any Canadian client, the Canadian Securities Administrators, an umbrella organisation for the country’s 13 provincial and territorial watchdogs, said Monday.

Meanwhile and as always, there's a lot of speculation and theories about what lies ahead for the Stocks for 2023.

There is a common theme that there won't be much of any improvement heading into the new year and things could get worse for awhile for many reasons but many an article portray the effects of Central Bank moves in continuing to tame inflation we faced this year. Where's the price of Oil going, natural gas and electricity? And ... the pace of the economy here at home and down south in the US with more than normal/average people coming to retirement age and the impact on work forces that has.

Moving forward, I'll continue to buy on a monthly basis and one day in the future, another Bull run will occur at some point, hopefully for several months and increase the portfolios worth and dividend payments at a steady pace until the next upheaval. 

To start 2023, BNS or Bank of Nova Scotia, has an ex-dividend date of 01/03/2023 at $1.03 per share and is in the current 10 stock list of the BTSX. Can't go wrong with a top Bank during these turbulent times.

With the BTSX, I'll caution about Algonquin Power (AQN) where there could be a dividend cut in 2023 with more news about that from the company early in the new year. 

December Winter with the Coins

 

Although I remain a holder and have a continued interest in Bitcoin and Ether in Crypto land, the trust I have in Exchangers/Wallet providers has gone and I withdrew the bulk of my coins.

This year, with what they call a 'Crypto Winter', it hasn't actually thawed much since March of 2022 looking at the yearly chart of BTC and a lot of accusations about which billionaire owner/partner is trying bury another exchange in trying to create a monopoly is not creating a good scene right now.

Some of the older and first Exchangers I hooked up with have ridden out these major issues so far with other outfits collapsing around them with billions gone ... causing many to move their coins to safer places like "Cold Wallets" or out of Crypto all together. With layoffs, lawsuits and more pending legislation coming, even those that have been around for years will feel the pressure more.

                                                Bitcoin in 2021                  Bitcoin Today, 2022

When and if things turn around and there's a slight Bullish glow to all that is Bitcoin, I may get involved once again and resume my Trading "Pairs" game. Currently, it's overall flat and going sideways or down. Hopefully better times in 2023 in that Market place.

BTC needs to get beyond the $20,000 USD average plateau and move up in stages over weeks to 30 grand and above to get a more positive feel and renewed interest in Crypto overall in my opinion. 

Meanwhile, the "Coin" funds I withdrew over the last week will come in handy buying more dividend paying stocks. In the stock market recently, with North American Central Banks saying they are scaling back interest rate hikes in the months ahead, that has put more of positive shine to it all on the short term, depending what sector. Who knows what current and new issues will rise up in December but as always, long term is what I look at.