Monday, February 5, 2007

Large Cash Position

As you can see from my last networth statement I’m very heavy on the cash side with about 20% of my portfolio in money markets (yielding about 3.4%). This is a position that I hate to be in. Ideally, I’d like to be 95% invested (keeping 5% of my powder dry for buying opportunities) but I just can’t find anything that I consider to be good value (especially in Canada). Most sectors seem to have historically high valuations right now (financials, utilities, telecoms, oil/gas and generally I don’t invest in either Canadian tech or medical companies because I think there is better value elsewhere). So where am I going to be looking for value in the coming month? Well here is a list of the stocks that I’m going to be reviewing over the next couple of days/weeks/(hopefully not months). As you can see most are boring old tried and true blue chip stocks. Some I’ll be waiting for a pullback, while others I will just be following and deciding if they are worth investing any capital into at current levels.

BNS
T
BCE
ECA
GNY
TLM <=hope to buy on a 10% to 15% pullback
MMM – purchased recently
TEVA – US
GE – US
FDX – US
UPS – US

I am also taking a look at a recently launched global mutual fund managed by James O'Shaughnessy (not to be confused with his international fund).

I might not be able to spot anything of value right now but… if you think you have leave me a comment or send me an email at middleclassmillionaire@yahoo.com and I’ll get back to you with my thoughts and opinions.

7 comments:

M M said...

What is the new mutual fund from James O'Shaughnessy? I've read his books and like them.

If I remember correctly they were instrumental in my buying a large chunk of Hennessey Fund shares. (Which haven't preformed wonderfully of late)

Middle Class Millionaire said...

Through RBC, James O'Shaughnessy has recently opened two new funds.

1.RBC O'Shaughnessy All-Canadian Equity Fund

2.RBC O'Shaughnessy Global Equity Fund

The fund that I'm personally interested in is his Global Equity fund. I plan on reviewing it and posting it to the blog...but basically I'm interested in it because I don't follow international markets so... I am considering buying a well managed mutual fund to gain exposure to some non North American markets, and based on Mr. O'Shaughnessy's past performance and methodologies I would consider his fund.

The following link will give you some more information about the O'Shaughnessy approach as well as his funds.

http://www.rbcam.com/RBC:RcCIgI71A8UAA8hYW-c/news/oshaughnessy-funds.html

Cheers,
MCM
http://middleclassmillionaire.blogspot.com

advantage said...

What is min. yield you will accept when you buy a stock? Do you have one?

What is your goal yield for your portfolio? You must have one if you want to live on Dividends someday.

QUALITY STOCKS UNDER 5 DOLLARS said...

Cannot beat that

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