Posted on 31 January, 2010
Over the last 50 years, the Canadian government has introduced numerous tax sheltered vehicles to help Canadians in our pursuit of a richer retirement, a higher education, and just some plain old tax relief. The question on everybody’s mind: Which Contribution Comes First: RRSP, RESP, or Tax Free Savings Account???
Posted on 21 January, 2010
President Barack Obama, eager to harness and redirect voter anger over bank bailouts, is ramping up his clampdown on Wall Street. Building on his own proposals and the work of the House, the president wants new federal government powers to limit the size and complexity of large financial institutions and to limit their ability to engage in high-risk trades.
Posted on 21 January, 2010
It looks like the health care companies are almost out of the woods with United Health (ticker: UNH) reporting better than expected earnings. Shares are still well off its $64 high from 2006 but it looks like the company has turned the corner and is starting to exceed analysts expectations. Consider buying this stock outright or selling out of the money puts on the S&P Managed Health Care index.
Posted on 20 January, 2010
Both shares of McDonald’s (MCD) and Burger King Holdings (BKC) have underperformed the Standard & Poor’s 500 index over the last year. However, Credit Suisse recently upgraded McD’s while cutting Burger King. We, at Frontwater, believe both stocks deserve at the very least special attention.
Posted on 18 January, 2010
IMF chief says global economy recovering but warns about money rushing into emerging markets
Posted on 14 January, 2010
Have we learned anything from the financial crisis? John Cassidy, a New Yorker economics writer, has written dozens of articles about the crisis. Now he’s written a book, How Markets Fail: The Logic of Economic Calamities (Viking, $35), that has received excellent reviews since coming out last month.
Posted on 12 January, 2010
One of the most remarkable things about the financial crisis is that, despite nearly destroying the economy, it hasn’t led to any meaningful banking reforms. One might think that, after a near-death experience, fixing the system would be a top priority. But for a variety of reasons, including the market recovery, nothing has [...]
Posted on 11 January, 2010
2009 turned out to be a great opportunity to not only gobble up stocks but to borrow on leverage at ridiculously cheap interest rates. Indeed, clients of Frontwater Capital saw returns that well exceeded that of the market. But that was last year when any handful of conservative quality stocks including Diageo, Unilever, Proctor & Gamble, Enbridge, Transcanada, Fortis Inc, BFC Waste, Waste Management Inc traded at the lowest P/E ratio in 15 years with dividend yields exceeding 5% in many cases.
Posted on 09 January, 2010
Paying someone to invest your money in mutual funds is akin to paying someone to pump gas into your automobile. You used to do so years ago, but in this era, very few any longer see value added in doing so. In a large way, mutual funds have outlived much of their usefulness.
Posted on 08 January, 2010
The aftershocks of the credit crisis will be a significant drag on job creation during the economic recovery, and those counting on a classic bounce-back may want to get a reality check from the housing and retail sectors.