We executed the following transaction(s):
- Japan
- Market Indicator
- Price Momentum Indicators
- Richard Russell
- Silver
- Speed Resistance Lines
- U.S. Dividend Watch List
2022 Dogs of the TSX 60
Below is the Dogs of the TSX 60 for 2022 with the breakdown of the other categories that we track. Continue reading
2022 Penultimate Profit Prospect
2022 Penultimate Profit Prospect and our Alternative Continue reading
2022 Dogs of the Dow
Below is the Dogs of the Dow for 2022 with the breakdown of the other categories that we track. Continue reading
2021 Book List
Below are the books that we’ve read cover-to-cover from January 2021 to December 2021. Don’t forget to check out our 2020, 2018, 2017, 2016 and the Dow Theory Letters book lists.
Support our research by buying books of interest through the following links. Thank you.
- The Spinning Magnet by Alanna Mitchell
- Blockchain Revolution by Alex Tapscott & Don Tapscott
- Empires of the Sky by Alexander Rose
- Almost Everything by Anne Lamott
- How to Decide by Annie Duke
- The Smartest Guys In the Room by Bethany McLean
- The Plague Cycle by Charles Kenny
- George Washington by David O. Stewart
- Hit Makers by Derek Thompson
- The Age of Capital by Eric Hobsbawm
- The Borgias by G. J. Meyer
- It's Better Than It Looks by Gregg Easterbrook
- The Man Who Solved the Market by Gregory Zuckerman
- Failure Is An Option by H. Jon Benjamin
- Unknown Market Wizards by Jack D. Schwager
- Atomic Habits by James Clear
- Mr. Market Miscalculates by James Grant
- Clutter by Jennifer Howard
- A Short History of Financial Euphoria by John Kenneth Galbraith
- Washington’s End by Jonathan Horn
- In the Shadow of Liberty by Kenneth C. Davis
- Entry and Exit Confessions of a Champion Trader by Kevin Davey
- How to Grow Old by Marcus Tillius Cicero
- How to Be A Friend by Marcus Tillus Cicero
- Eliot Ness and the Mad Butcher by Max Allan Collins
- Iron Express by Michael Hiltzik
- The Medici by Paul Strathern
- The 48 Laws of Power by Robert Greene
- The Greatest Treasure Hunt in History by Robert M. Edsel
- When Genius Failed by Roger Lowenstein
- How Adam Smith Can Change Your Life by Russ Roberts
- Forgetting by Scott A. Small
- Armageddon Averted by Stephen Kotkin
- Science Fiction by Stuart Ritchie
- Prisoners of Geography by Tim Marshall
- The Inner Game of Tennis by Timothy Gallwey
Posted in book list
2021 Penultimate Profit Prospect Returns
On January 2, 2021, we said the following:
“For the year 2021, we have identified Cisco Systems (CSCO) as the Penultimate Profit Prospect. Additionally, Apple Inc. (AAPL) is our alternative stock. Considering how much Apple seems over priced and over owned, we are very curious to see the performance outcome of this stock.”
Below is the performance of Cisco Systems (CSCO) and Apple Inc. (AAPL) in 2021.
Initially, we thought that Apple would fall far short of the mark given the 2020 performance and the very slow start to the year. Then, as the mid-November kicked in, Apple Inc. started to show signs of life just as Cisco Systems was rebounding.
Relative to all the stocks that are part of the Dow Jones Industrial Average, Cisco Systems (PPP) and Apple Inc. (our alternative) did well in 2021.
According to Michael B. O’Higgins, the Penultimate Profit Prospects had a cumulative total return of +43,177% from 1973 to 1998. This is in contrasted with the Dow Jones Industrial Average cumulative total return of +2,408% over the same period.
*See Michael B. O’Higgins reference to the Penultimate Profit Prospect (PPP) in his book Beating the Dow.
Posted in Penultimate Profit Prospect
2021 Dogs of the TSX 60
Below is a chart of the performance of the Dogs of the TSX 60 from December 31, 2020 to December 31, 2021. Continue reading
2021 Dogs of the Dow
Below is a chart of the performance of the Dogs of the Dow from December 31, 2020 to December 31, 2021.
Dollar Cost Averaging Tool
As long-term investors and holder of equity, we seek the most optimal process to accumulate and build wealth over time. That being said, most of us have finite amounts of time and money. The best thing anyone can do is start early and be consistent with their investment time horizon. We’ve documented the results of this in our Work Smart, Not Hard posting.
Now we will explore Dollar Cost Averaging which is a popular concept of allocating a fixed amount of money over a specific time frame. As an example, one might choose to allocate $100 per month for 5 years or $6,000 total. The power of Dollar Cost Averaging coupled with the power of compounding are apparent in our example below. Let’s assume we start our investment in 1990 and invest $100 per month for 5 years, that $6,000 total invested would have risen to $68,055 by the end of November 2021.
Our team has created a free excel Dollar Cost Averaging tool here so that you can run your own scenario.
The areas in red boxes are the places where you can change the date, amount invested per year, and the total time invested. By right clicking inside the chart and selecting "refresh data" in the red circle, you can see the change in the value of the scenario you have constructed. Here's to a prosperous 2022 and beyond.
Posted in Dollar Cost Average, Investor Education
Transaction Alert
We executed the following transaction(s):
Manulife Financial 10-Year Targets
Below are the valuation targets for Manulife Financial Corp. (MFC.TO) for the next 10 years. Continue reading
Algonquin Power & Utilities 10-Year Targets
Below are the valuation targets for Algonquin Power & Utilities (AQN) for the next 10 years. Continue reading
Saputo Inc. 10-Year Targets
Below are the valuation targets for Saputo Inc. (SAP.TO) for the next 10 years. Continue reading
Hang Seng Index: December 2021
Review:
On October 5, 2019, we said the following of the Hang Seng Index:
“By all accounts, the failure of the Hang Seng Index to meaningfully exceed the 23,264.43 level indicates that the range of 24,585.53 to 21,616.14 is a lock.”
Below, we assess the prospects of where the index might be headed. Continue reading
TSX 60 In Review: December 21, 2021
Below is the year-to-date performance of the stocks that constitute the Dogs of the TSX 60, the ten highest yielding stocks. For contrast, we’ve included the breakdown of the top 5, top 3 and 2nd, 3rd, 4th ranked members of the Toronto Stock Exchange with the lowest dividend yield for a sense of perspective.
The top ten groupings are beating the Toronto Stock Exchange by a wide margin. This is the stated goal of the strategy, “to beat the index.”
Below is our breakdown of the performance of the Top Ten Low Yield Stocks as compared to the index: Continue reading