Monthly Archives: November 2017

What to Buy When Everything is Expensive

For long term investors, earning 5% to 7% annual return (after tax) is a suitable target to aim for. But this is difficult to pull off today. The current expected returns of the financial markets are extremely low by historical standards. Traditional asset classes such as stocks and bonds are generally overvalued now. Stock MarketĀ Expected ReturnĀ = 3.2% Theā€¦ Read More »

The Ugly Truth About Inflation

Why Do Governments Target 2% Inflation? The Bank of Canada maintains an inflation rate target of 2%.Ā The official websites of Central Banks in the U.S.,Ā in Europe,Ā and in JapanĀ allĀ appear to target this magical number when deciding how to conduct their monetary policies. But why? Inflation isn’t necessarily a good thing. There are ways to grow the economy and generateā€¦ Read More »

Is Enbridge Stock a Good Buy at $47?

tl:dr. The answer is yes, Enbridge is a good buy. šŸ™‚ Fair Market Value ofĀ Enbridge (ENB)Ā  Canadian pipeline company Enbridge is currently trading at around $47 per share. But based onĀ Benjamin Graham’s formula for valuing stocks, which I’ve discussed before,Ā the fair market value of Enbridge should be around $62. Enbridge stock’s EPS is $1.96. The growth rate (g)ā€¦ Read More »