Thursday, June 21, 2007

Pot Pourri

1) Boy, does Financial Jungle's analysis of BMO's long-term benefits -- even if the stock flatlines -- make me feel good. (I own BMO shares). Four Pillars and Mr. Cheap have also chimed in on the subject, as well as initiated positions. We're all in this together, boys -- along with about 99% of Canadian investors who, chances are, hold BMO though a Canadian equity mutual fund. :)

2) The Sun's Financial Diary's views on why ING Direct is lagging behind their high-interest savings competitors has a lot in common with my own views on the subject, which I wrote about last month. I'm grateful to ING for getting the orange savings ball rolling, but at the end of the day, when it comes to banking, the only thing I'm loyal to is better rates.

3) As intrigued (pleased?) as I am by the prospect of a made in Canada solution to the BCE takeover, I'm still surprised by Telus' latest move to buy its telephone rival. Truth be told, based on their track record, I can't think of a single reason why the CRTC would allow this to go through, beyond the "if we don't, the big bad Americans will" angle. And hey, speaking of domestic leaders, I can't help but think SteadyHand's Tom Bradley is on to something. To summarize for anyone who can't get past that subscriber wall, with so many bidding wars for so many Canadian companies, you have to think more than a few will prove to be a waste. If that happens, Canadians may be in the position of buying back their beloved lost assets at drastically reduced prices a few years from now. How is that bad for Canada?

4) Much as I hate to put words in anybody else's mouth, it certainly sounds to me like Rob Carrick is adding his voice to the chorus of voices that are whispering the "bear" word of late. Whether the red-hot TSX has room to grow further is neither here nor there. But the fact remains, the TSX is now three-quarters based on energy, financials and materials. To anyone who thinks they're playing it safe by just buying the index, one ETF does not a diversified portfolio make.

5) With all the talk about hedge funds, many people are anxious to get in on the easy action. Tom Bradley offers a simple solution: buy a house. After all, you get all the upside, while the people who actually put up the money (the bank) just get their money back. Sounds like a hedge fund to me. And the appeal of starting your own hedge fund appears to be spreading. The Globe's Report on Business team is doing it.


Financial Jungle said...

Noticing some traffics coming from "Growth In Value" today. Thank you for the mention.

I like BMO at this valuation, and it's one that I'll hold for many decades.

Thanks again.

Sun said...

Thanks for the mention. Much appreciated!