Friday, April 29, 2016

Case for owning the S&P TSX 60 ETF

Gee, you ask, is there a way to still be long North American equities without so much exposure to possible US collapse, but also be long gold, long miners, sort of long oil, and gee also maybe snag a bit of that positive outperformance of Canadian banks?

Sure. XIU.TO. It's an S&P TSX 60 ETF.


* Canada's finished its recession, and Trudeau's going to stimulate growth if it kills him. Our economy should go up from here, relative to the US.

* The Canadian banks have always made money, yet the stupid yanks have sold them down to a 4% yield. But now, the yanks are looking for any way to make money safely, and suddenly 4% yield with the prospect of capital protection really must look good to them. The Canadian banks are all traded in New York, by the way, and we already know that asshat cracker Yanks love sloshing around in kiddy pools that are far too small for them.

* XIU.TO offers a 3%-or-so yield. That's 50% better than SPY, with more possible upside.

* Pretty much the only companies the TSX 60 has as its components are banks, insurance companies, and miners. Oh and maybe a couple consumer stocks. Oh and a couple worthless joke companies like Bombardier and SNC Lavalin, but at least we can be certain the Liberals will give them free money.

* The S&P 500 and the TSX seem to have gone extremely uncorrelated recently. That's good for reducing your risk if you're a SPY owner, but it's also something that maybe the quants will chase.

* Xiu Xiu was a good band.

PS: Post #5500!

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