Thursday, November 18, 2010

O Canada!

One day after fretting so much about GXG, the Columbia ETF, we took a shot at Canada and invested 1.4% of the portfolio in EWC.




What's to like?  The chart is good.  Not upside explosive, but the trend is intact.  EWC is diversified compared to many ETFs.  The dividend yield is 2.6%.  Canada is a resource rich country and consequently EWC has a large exposure to mining and material stocks.  With this purchase, all asset classes are now within their preferred ranges.  Time to sit back and relax. Oh, I almost forgot, Canadians have an anthem you can actually sing.  I'll memorize every verse and sing to the rafters as long as EWC goes up.

What's not to like?  A "Special Outlook Issue" of Money magazine arrived in the mail just after the EWC buy order was executed.  A cover page blurb shouts "More Stocks, Less Bonds", a kiss of death if ever I've seen one.  If it was Barrons or the Wall Street Journal, I'd be worried.  Doing what Money recommends has me trembling.

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