The opinions expressed on this page are those of your editor,
John Budden, and
not those of our Friends or Legends (living or dead); unless
specifically stated. We are working on our ability to communicate
with our immortal Legends and will keep you informed on
any ‘break through’.
John Budden’s CANADA ‘Centric’ Bipolar Portfolio
The Bipolar Portfolio is designed to weather
countervailing inflationary and deflationary forces and,
ultimately, competitive devaluations...
The Bipolar Portfolio offers an
investment survival guideline for investors. Obviously,
portfolio weightings are dependent on one's personal
risk tolerance and investment objectives. Securities
should be selected with advice from a professional
investment advisor.
Bipolar Barbell Portfolio; a guideline:
1.
Cash (33%): Government of Canada T Bills.
For amounts less than $250m, keep no more than
$100m in any one major Canadian chartered bank.
2.
Stocks (12%): Blue Chip Canadian companies with
dominant franchises and a long history of paying and
increasing their dividends... to include Canadian
chartered banks – Toronto Dominion Bank (TD)
(1%)
and Royal Bank of Canada (RY)
(1%) ,
Insurance and Financial Services,
Manulife Financial (MFC)
(1%),
Railway - Canadian National Railway (CNR)
(1%),
Oil and Gas - Imperial Oil (IMO)
(1%)
, Suncor Energy (SU)
(2%),
Encana
(ECA)
(1%),
Husky Energy (HSE)
(1%),
Pipelines - TransCanada Pipelines (TRP) (1%) Communications -
Rogers Communications (RCI.B)
(1%), Agriculture - Viterra (VT) (1%),
(All
listed on the TSX).
3. Global Stocks (10%):
TIS Preservation and Growth Fund
(10%);
now available to Canadian investors -
The fund
codes are GHC 100 (front end)
and GHC 200 (no load).
4. Canadian Income Trusts (5%):
Top quality and heavily weighted in resources;
particularly oil and natural gas:
Pengrowth Energy Trust (PGF.UN)
(5%)
5.
Precious Metals Holdings
(30%):
As inflation, deflation and devaluation insurance...
Gold Funds/Shares (20%): AGF
Precious Metals Fund
and / or Sprott Gold and Precious Metals Fund (5%) and Goldcorp
(G) (5%) and
Barrick Gold (ABX) (5%)
(Listed
on the TSX); Sprott Gold Bullion Fund (5%) at
$9.30 (Cdn.) added on June 8, 2009.
Direct Holdings of
Gold and Silver Bullion (10%): Central
Fund of Canada (CEF.A)
(Listed on the TSX) and / or
Central Gold Trust (GTU.UN)
6. ETF***:
Short
(10%):
BRIC Index (EEB) (5%) and Emerging
Markets Index (EEM) (5%)(Listed on the NYSE).
This hedge
was initiated on June 20, 2008 when both indices were
selling at about $50 (U.S.) The goal was to hedge risk
to Canadian and Global equity segments
of the portfolio.
Initial
short position representing 20% of portfolio; 10%
covered at approx.
$20.50 on
both EEM and EEB
***
EFT:
Long
(5%) Horizons BetaPro Crude Oil Bull Plus Fund
(HOU)
(listed on the TSX); sold holding at $10.10 on June 29,
2009.
Investment alternatives for qualified accredited
investors only:
Great Under the Radar Managers
