2014 ALL-STAR CANADIAN STOCKS

SOME INVESTORS ARE LIKE ELEPHANTS – they never forget. That explains why many people still refuse to invest in the stock market even though it has been more than five years since we hit bottom in the crash of 2008-09. Never mind that the markets have rallied back since. The fear that another collapse could happen at any time continues to haunt people. They prefer to have their money in dependable risk-free guaranteed investment certificates, even though the interest rates offered by the banks are pitifully low.

I understand the caution. The 2008-09 crash almost brought down the international financial system and resulted in the worst economic downturn since the Great Depression. But things have changed. The North American economy is gradually improving, and the outlook for the next few years is positive.

So it’s time to shed those stock market inhibitions and start to earn some higher returns. I’ve put together a package of three Canadian All-Star stocks that I think should be part of all portfolios. These are sound bluechip companies with strong business franchises, good management, and a solid dividend history. That does not mean the share price will always go up – no one can promise that. But when the inevitable market corrections come along, these stocks will hold up better than most and rebound more quickly. Meantime, you’ll be collecting dividends every quarter.

So here they are: my Canadian Stock All-Stars.