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Strategies & Market Trends : Underexposed Technical Analysis -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (399)	8/5/2019 4:35:41 PM
From: Underexposed	Read Replies (1) \| Respond to of 914

USA: You have given me a lot of food for thought when I come to creating my USA fantasy portfolio. As far as the energy sector goes in Canada, we are suffering badly and have been doing so for several years now. I am 100% out of it now whereas years ago it made up half my portfolio. The problem in Canada's oil market is lack of access to world markets. I would say that 90% of our oil is shipped to the USA and they get it at a roughly 26% discount off world price... So we are not getting the max for our resource. We are endeavouring to build pipelines to the west so as to sell to the Asian market but are being blocked for a variety of environmental and political reasons... the same with access to the USA. More oil is now shipped by rail but that is not a great solution either. Most of those rail lines were built 50 or more years ago and were never designed for that heavy traffic, hence we hear more and more of derailments. I come from a railroad family and even worked on the largest EXTRA Relay gang in western Canada. I was a late teen then earning $1.25/hour for 12 hour days 6 days a week... I worked hard once in my life :) Back then you had small gangs responsible for 10 miles of track... nowadays those are all gone and a train runs over the track to test it maybe 2x per year. Today's rail is not heavy enough or maintained as much, hence the increase in derailments. I see no real rise in our industry for energy until these issues are resolved and that can take years and $50/barrel oil does not help matters either... especially when it must be discounted 26% to be sold.. I like your dividend approach. One of our tax free options in Canada is called a TFSA. It is restricted as to how much money you can yearly add ($5500). I put dividend paying stocks in this. The dividends are NEVER taxed... you can even remove money from the portfolio with no penalty AND one year later return that money over and above the normal $5500 contribution. I have not done this but yet think of this advantage..... I want to generate $1000/month in dividends... I get about $500/month now. Once I hit $1000/month I will remove that money and live off it for the following money... then remove another $1000... and so on for the year. No Taxation and it is in the bank for less than 1 month so it is not taxed there either. At the end of the year I will replace that money (12,000) PLUS the normal contribution ($5500) and invest that in more dividend producing stock... creating even more dividends to live off tax free. I have another tax free portfolio RRSP that I must soon convert to a RIF (registered income fund) this too is tax free while under that umbrella but I must withdraw about 5%/year on which I do pay taxes but I will bundle most of that into my TFSA. I am not sure you could do that in the USA I will look at the stocks you mentioned in your last post... I may use one or two if they are the right price for this small USD fantasy portfolio UE