(B)(N) The Canadian Bank Act

The Everyman Bond & Eight Miracle Plays
Courtesy: J.M. Dent & Sons 1904

Drama. The conservatively managed Perpetual Bond™ in the eight Canadian banks has returned +82% so far this year and another 3.7% in dividends. Even the Perpetual Bond™ on an all cash basis has returned +21% and the “Everyman Bond” (sic) which just owns them all, all of the time, is up +15% this year (plus dividends). Please see Exhibit 2 and 3 below.

The Canadian banks have also returned a remarkable +14.8% return on the shareholders equity which doubles the worldwide average of 7.3% for five hundred of the world’s top banks and of which they gave half back for a dividend payout of $14.1 billion (Reuters, November 6, 2013, Returns fall as banks struggle to rein in costs”report). Please see Exhibit 1 below.

Exhibit 1: (B)(N) The Canadian Bank Act – Fundamentals – November 2013

The Canadian Bank Act – Fundamentals – November 2013

Since we’ve updated our stop/losses and bought some puts out of profits, all we can really hope for now is that some of the banks miss the “analyst average earnings expectations” and create some new buying opportunities for us at lower prices. Oh well. What’s a girl to do?

Exhibit 2: (B)(N) The Canadian Bank Act – Prices & Portfolio – November 2013

(B)(N) The Canadian Bank Act – Prices & Portfolio – November 2013

Exhibit 3: (B)(N) The Canadian Bank Act – Portfolio & Cash Flow Summary – November 2013

(B)(N) The Canadian Bank Act – Portfolio & Cash Flow Summary – November 2013

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For more information on the Chart elements and additional references, please see our recent Post, The RiskWerk Company Glossary.

And for more on what risk averse investing has done for us this year, please see our recent Posts on The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100.

And for more on what’s Working in America, Big Oil, Shopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.