No investor will ever forget the financial crisis of 2008-2009. However, some might not be fully-aware of the lessons to be learned from it, writes Rob Carrick of the Globe and Mail.
Here are four investing lessons we've learned since the global financial crisis hit with full-force five years ago:
1. You need five years in the market, but ten is better.
No matter how hard they fall, the stock markets always come back. They rebounded from the tech wreck in 2000-01, and they did likewise after the more frightening crash of 2008-09. But only now, five years later, is the Canadian stock market starting to get any traction in exceeding its pre-crash high water mark.
That's why a five-year rule is mandatory when investing in stocks. If you can't hold that long, don't buy. Ten years is a much better minimum hold period. While the S&P/TSX composite index gained just 1.3% annually on average over the five years to August 31, the 10-year gain was 8.1%. Both numbers are total returns, which means dividends and share price gains are combined.
Top Canadian Stocks To Buy For 2014: Abbott Laboratories(ABT)
Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. The company offers adult and pediatric pharmaceuticals for rheumatoid and psoriatic arthritis, ankylosing spondylitis, psoriasis, and Crohn's disease; dyslipidemia; HIV infection; prostate cancer, endometriosis and central precocious puberty, and anemia caused by uterine fibroids; respiratory syncytial virus; adult males who have low or no testosterone; secondary hyperparathyroidism; hypothyroidism; and pancreatic exocrine insufficiency, as well as anesthesia products. It also provides diagnostic products, such as immunoassay systems; chemistry systems; assays used for screening and/or diagnosis for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological, and infectious diseases; instruments that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infections agents; genomic-b ased tests; hematology systems and reagents; and point-of-care diagnostic systems and tests for blood analysis. In addition, the company offers a line of pediatric and adult nutritional products. Further, it provides coronary, endovascular, vessel closure, and structural heart devices, such as drug-eluting stent systems, coronary metallic stents, balloon dilatation products, coronary guidewires, vessel closure devices, carotid stent systems, percutaneous valve repair systems, and drug eluting bioresorbable vascular products. Additionally, the company provides blood glucose monitoring meters, test strips, data management software, and accessories for people with diabetes; and medical devices for the eye, including cataract surgery, lasik surgery, contact lens, and dry eye products, as well as branded generic pharmaceutical products. Abbott primarily serves retailers, wholesalers, hospitals, and health care facilities. Abbott was founded in 1888 and is headquartered in Abbott Park, Illinois.
Advisors' Opinion:- [By Rich Smith]
Don't look now, but Abbott Labs (NYSE: ABT ) is about to buy itself a bit of growth.
On Monday, the Abbott Park, Ill.-based medical products giant announced that it has agreed to buy privately held medical device-maker IDEV Technologies for $310 million, net of cash and debt. In return, it will gain IDEV's portfolio of products that include, importantly, the SUPERA Veritas self-expanding nitinol stent system, used for opening blocked blood vessels. Approved for use in Europe, SUPERA Veritas has only limited approval for use in the U.S. but is in the process of seeking FDA approval for expanded usage.
Top Canadian Stocks To Buy For 2014: ENI S.p.A. (E)
Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. The company also involves in the production and sale of electricity; refining and marketing of petroleum products; and production and sale of petrochemical products and hydrocarbons. In addition, it engages in the offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies. It has a strategic partnership with Gazprom for the joint development of projects in the upstream oil and gas markets. Eni SpA operates in Europe, Africa, Asia and Oceania, and the Americas. The company was founded in 1953 and is headquartered in Rome, Italy with an additional office in San Donato Milanese, Italy.
Advisors' Opinion:- [By Sean Williams]
Despite operating around the globe, many of Chevron's assets are well-protected from political unrest or violence. The same can't be said for Italian-based Eni (NYSE: E ) which saw a good chunk of its oil production come under serious pressure in 2011 because of civil unrest and an eventual regime change in Libya. At the time, 14% of Eni's daily production ��nearly 250,000 barrels ��came from Libya and it maintained quite a few other undeveloped assets in the country. Eni's prospects have since improved, but other oil and gas companies deal with the similar potential for unrest on a daily basis.
5 Best Biotech Stocks To Invest In Right Now: Potomac Electric Power Company(POM)
Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas. It distributes electricity to approximately 1.8 million customers in the mid-Atlantic region and delivers natural gas to approximately 123,000 customers in Delaware. In addition, the company involves in the retail supply of electricity and natural gas; provision of energy efficiency services to federal, state, and local government customers; and designs, constructs, and operates combined heat and power and central energy plants, as well as owns and operates two oil-fired generation facilities. Further, it offers high voltage electric construction and maintenance services, low voltage electric construction and maintenance services, and streetlight construction and asset management services to utilities, municipalities, and other customers in the Washington, District of Columbia. Additionally, the company holds investments in eight cross-border energy leases. Pepco Holdings, Inc. was founded in 1896 and is based in Washington, District of Columbia.
Advisors' Opinion:- [By Sean Williams]
Powering up
It's pretty rare for stocks in the electric utility sector to see a prolonged dip given that electricity is a necessity product, but that's what we've seen from Mid-Atlantic electric utility provider Pepco Holdings (NYSE: POM ) .
Top Canadian Stocks To Buy For 2014: Grupo TMM S.A.(TMM)
Grupo TMM, S.A.B., together with its subsidiaries, operates as an integrated logistics and transportation company in Mexico. The company offers maritime transportation services, including offshore vessels, which offer transportation and other services to the Mexican offshore oil industry; tankers that transport petroleum products in Mexican waters; parcel tankers, which transport liquid chemical and vegetable oil cargos from and to the United States and Mexico; and tugboats that provide towing services at the port of Manzanillo, Mexico. It operates a fleet of 46 vessels, which comprise product and chemical tankers, harbor tugs, and various offshore supply vessels. The company also operates two Mexican port facilities, Tuxpan and Acapulco, as well as provides port agent services to vessel owners and operators in the Mexican ports. Its logistics business provides trucking services to manufacturers consisting of automobile plants, and retailers, as well as offers logistical f acilities in industrial cities and railroad hubs in Aguascalientes, Toluca, Puebla, Veracruz, Nuevo Laredo, Cuernavaca, Mexico City, Monterrey, Manzanillo, Ensenada, and Altamira. The company's logistics services include consulting, analytical, and logistics outsourcing; logistics network analysis; logistics information process design; trucking, intermodal transport, and auto haulage services; warehousing and bonded warehousing facility management; supply chain and logistics management; product handling and repackaging; local pre-assembly; maintaining and repairing containers; and inbound and outbound distribution using truck transport. Grupo TMM was founded in 1955 and in headquartered in Mexico City, Mexico.
Top Canadian Stocks To Buy For 2014: Spectrum Brands Holdings Inc.(SPB)
Spectrum Brands Holdings, Inc., together with its subsidiaries, operates as a consumer products company worldwide. It offers consumer batteries, including alkaline and zinc carbon batteries, rechargeable batteries and chargers, and hearing aid batteries and other specialty batteries; pet supplies, such as aquatic equipment and supplies, dog and cat treats, small animal foods, clean up and training aids, health and grooming products, and beddings; and home and garden control products comprising household insect controls, insect repellents, and herbicides. The company also provides electric shaving and grooming devices; small appliances, including small kitchen appliances and home product appliances; electric personal care and styling devices; and portable lighting. Its sells its products through various trade channels, including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors, and original equipment manufacturers primarily under t he Rayovac, Remington, Varta, George Foreman, Black & Decker, Toastmaster, Farberware, Tetra, Marineland, Nature?s Miracle, Dingo, 8-in-1, Littermaid, Spectracide, Cutter, Repel, Hot Shot, Black Flag, and TAT brands. The company was headquartered in Madison, Wisconsin. As of January 7, 2011, Spectrum Brands Holdings, Inc. operates as a subsidiary of Harbinger Group Inc.
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