A Look ‘Down Under’

It’s been about two years since I first invested in Australian issues, choosing to take a slow approach while I obtained some practical experience first hand.  Certainly many of the yields are good, but the economy – much like Canada – is resource based.  Then there’s the whole franking deal.  Plus the foreign exchange conversion – but this has been relatively stable at 75 – 80 cents per USD.  Add to that, until recently the selection was limited to ADRs or using a cost prohibitive foreign desk.

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Rolling Unabridged Update #1

Last month I introduced the Rolling Unabridged Monthly Portfolio (RUMP).  The primary reason was to attempt to identify Herd Mentality tendencies within the DGI community.  My first assumption is that there may be a 6 to 9 month lag from identification to purchase.  My database now carries an eight month lag which I expect to reduce a little further over the next month or two.

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What/When Is Enough?

In my web wanderings, I encounter many disparate views on investing.  Some I agree with, others I don’t.  Then there are the few I can’t even wrap my head around.  About a year ago, it appeared that sentiment had begun to shift.  One post, The dark side of dividend income by Bite-Sized Income (now dormant) highlighted this change.  In a nutshell he presented an argument that dividend investing (@ 4%) is not worth the time.  A plausible scenario is presented but it is unlikely the majority of us could capitalize on it.

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