April was a quiet month in the markets. The earnings season showed that many companies were achieving their goals and more. However, my perception is that we have the calm before the storm.

Why? There is no way markets can continue to rise as they have before, and the lack of recovery after the jump in earnings shows that it is all priced in.

Now, more than ever, you need to know your investment strategy and be strong to stay on course. You are sailing across the ocean in uncharted waters …

The uncharted waters are, in my opinion, the following economic situations that we face on various scales. Everyone invests and adds money, which fuels the prices of many stocks, but the interest rate will be the deciding factor.

Stock deals

No business. Nada.

I’m working on selling my computershare inventory and it’s difficult. Some of this is easy, but not all stocks. I have to call to understand how I can do it now.

Portfolio management

The currency exchange affects my portfolio, but that goes without saying. It pretty much offsets the growth in my US holdings … One point that most investors ignore is that the potential for growth is difficult to quantify through quantifiable currency exchange.

In fact, TD is now my biggest stake in the currency exchange, and Apple and Microsoft are moving up to second and third.

We all start with sector allocations, but I have found that sector allocations are too broad, so I switched to industry allocation. If you look at my sectors you think I’m overweight financially, but if you break it down by industry it’s not bad.

Now Canadian banks are my foundation on which I build the rest of my portfolio. It’s one of my worst-performing positions, but it’s still a well-known figure.

Industry mapping - April 2021

I don’t pay much attention to my sector allocation below. I never used to.

Most of the books and articles refer to the sector, but after looking at companies by industry, it became clear that industries within a sector do not always overlap. The problem with the literature is that they try to simplify everything so it’s easier to validate your investments against 10 sectors than against 100 industries.

You are wrong in simplifying it as it does a disservice to investors. Look, I invest in 8 sectors (excluding energy), but I am invested in 15 industries. Am i diversified? You tell me!

Sector allocation - April 2021

Dividend income

My April 2021 dividend yield is $ 1,853. My total annual return is approximately 2.00%. It is a dividend growth portfolio for total returns, not a dividend income portfolio for retirement.

This is an important distinction because I get an annual return of over 12% on a dividend growth portfolio and an annual return of 8% on a dividend income portfolio. The 4% difference makes a huge difference in 10 years!

Dividend Income - April 2021

I will repeat that it is not important to balance monthly income. When you retire, you SHOULD NOT Live on income month after month. This is just bad personal finance. you SHOULD You must have at least 1 year of cash to pay the monthly bills and your monthly dividends replenish your cash so you have 1 year of cash anytime.


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