Monday, March 20, 2006

My Next Stock/ETF Trade

I'm planning on rolling my profits from the New York Stock Exchange (NYX) shares into one or more of the following:

Citigroup (C)
Vanguard Financials ETF (VFH)
IShares Germany (EWG)
IShares Canada (EWC)
IShares Australia (EWA)

(1) Financials since FED is nearing end of rate tightening cycle, bodes well for profit margins.
(2) Canada & Australia as trickle down plays on natural resources.
(3) Germany based on own opinion that German Labor Practicies will evolve to be more competitive with the global economy. Plus, this European country has a huge supply of human/intellectual capital that could be leveraged for remarkable benefits... Especially if they had longer work weeks!



Anonymous said...

I have liked Citigroup for a while now, and hold it in my portfolio. The yield is at 4.10% with steady earnings growth. They also continue to increase their dividend, which is something I specifically look for in my portfolio.

In terms of IShares Canada, yes you will get exposure to the energy sector, which is very strong right now - especially in the oil and gas sector where Suncor, Encana, and CNRL play. You also will get a lot of exposure to our banks (Royal Bank, Bank of Montreal) which tend to be Canada's strongest performers (with good dividends too). I don't see either of these dropping off anytime soon (but I seem to have misplaced my crystal ball). Good Luck.

Dude said...

Looks like we have similar objectives but with a different approach. My general approach is to invest in liquid equities using mostly index funds and eventually build up enough capital to draw 4% from stock equties annually in perpetuity.

Really enjoyed Dr. John Rutledge's article on Japan's monetary by the BOJ. I'm somewhat leveraged on EAFE and Japan index funds anticipating a Japanese enonomic rebound. They've been in a recession for about the last 15 years now and so if and when they finally get their monetary policy right, it just may be ripe for a nice rebound. I suppose we'll see in a few years.