GFM Network News

Money held in mutual funds dwarfs the rapidly growing exchange-traded funds industry.

Utilizing exchange-traded funds in an investment portfolio

Buy broad indexes and hold for long periods of time

Exchange-traded funds (ETFs) came into existence in the 1990s in response to the high fees of the mutual fund industry. They provide broad diversification and are traded like stocks. The original premise of ETFs is because the vast majority of mutual fund managers fail to outperform the market, it’s best to simply invest in the […] Read more

Bears, bulls, corrections, pull-backs

Economic downturns can have benefits too

We all love a good bull market, but are uptrending markets always the best for long-term investors? We spend from ages 20 to 60 or even 70 accumulating assets, and only the last 10-30 years cashing them in to live on. Why would we worry about a correction or bear market, unless we are at […] Read more

U.S. grains: Corn, soy, wheat book multi-month lows

Financial markets continue to drag commodities lower

Chicago | Reuters — U.S. grain and soybean futures sank to multi-month lows on Monday on worries about the coronavirus pandemic denting the global economy and chilling end-user demand for commodities, traders said. “The fear is still that it will only get worse as the week unfolds,” said Mark Schultz, chief analyst at Northstar Commodity […] Read more

ICE weekly outlook: Volatility hampers canola

MarketsFarm — Canola values have been at the mercy of volatile financial markets this week, trading in lockstep with headlines of plummeting crude oil values and stock indices. “We’re getting into a bit of a pattern in the markets,” Ken Ball of P.I. Financial in Winnipeg said, explaining that prices will show some strength, then […] Read more

U.S. grains: Corn, soy, wheat slide with financial markets

Drop in oil prices adds pressure on corn

Chicago | Reuters — U.S. grain and soybean futures fell on Friday as the spread of the new coronavirus triggered broad selling in commodities and equities. Wall Street tumbled as fears of economic damage intensified with the global tally of cases crossing 100,000. Financial markets view the virus, which causes a flu-like illness, as the […] Read more

Try these seven keys to less risky stock put-selling

Selling puts is not for the faint of heart, but there are ways to lower your financial risk

I frequently sell puts. This has helped me build the U.S. side of the taxable portfolio I publish in my newsletter from US$37,405 four years ago to US$90,000 today. Over these years I have been put once, had 14 positions expire and have profitably bought out an additional 11 positions. My profits have totaled $29,000 […] Read more

Investing and the omnipresent impact of the bell curve

Outstanding performance of the titanium portfolio on its first anniversary

Last year I described my “Titanium Strength Model Portfolio,” based on buying and holding strong stocks. Now it’s time to take a look at my results. How did the portfolio perform? How did it compare to market indices? What other nuggets can we glean that might aid our understanding of portfolio management? What does a […] Read more

Short-term, stocks can move unpredictably in either direction, but longer-term investments often insulate you from losses.

Secrets to sanity and success in the investment world

Buying and holding is a more solid, and sane, strategy then portfolio turnover

This article marks my 24th for Grainews. My first article, in March of 2018, had a quote: “it’s all about buying common shares in solid companies, and holding them for a long time.” I hope you are now convinced of the validity of this approach. Why is this simple strategy shunned by most market participants? […] Read more

Over the years, speculation has become a critical part of commodity futures trading.

What moves grain futures and cash markets?

Fundamentals and futures are the underlying structure. Then add on speculators

In the next few columns, I’ll review what makes futures and cash grain markets move. I’ll touch on fundamentals, futures markets, technical and speculation. Then I’ll throw in some tariff and trade issues and add a little political mayhem, in hopes of trying to make sense of how markets act and react. Market action starts […] Read more

Down markets aren’t bad markets

A review of 2018’s market 
performance shows a slight gain 
from the sample portfolio

Down markets are great if you’re in the stock buying mood. Markets ended 2018 with a thud. In the fourth quarter there were declines of about 16 per cent in Canada and 20 per cent in the U.S., closing the year slightly off these lows. Financial headlines were dire, with many suggesting the worst December […] Read more