Hey there. I’m Jon Erlichman and this is Trade Secrets, The Globe and Mail’s weekly newsletter for the inaugural Trade Off stock picking contest.
The competition has officially wrapped up, which means we’ve crowned our top traders. In the meantime, before we start our next Trade Off season, sign up to receive the Trade Secrets newsletter in your inbox.
Hats off to our champions!
Let’s begin with some well-deserved kudos.
Bravo to “ahebb” for taking home our $5,000 top prize and the priceless title of winner of the inaugural Globe and Mail Trade Off.
And, a big shoutout to “GinaJAM” and “Mikmik33,″ our second and third place finishers, who earn spots on the podium and $3,000 and $2,000, respectively.
What worked?
Let’s recap some of the key themes that emerged in the 12 weeks of competition.
In the first month, a surge in the prices of gold and silver helped fuel materials stocks. U.S. financials were standouts, as were portions of technology – namely, some of the memory companies cashing in on the artificial intelligence boom. In month two, gold and silver names continued to power portfolios, as did those tech companies. Geopolitical jitters also helped to lift oil prices and energy stocks — a trend that continued into the final weeks of play.
Bottom line: In a three-month stretch, big thematic trends such as gold, energy and AI tech drove outsized returns even in a choppy market.
Buffett’s baseball analogy: While stock market competitions are fun, don’t stress if you didn’t hit a home run in these last few weeks. In, reality, most investors make their money over the long run. That includes one of the world’s most successful stock pickers, Warren Buffett. The Oracle of Omaha has often compared the stock market to a baseball game with no called strikes. Buffett’s point: You don’t have to swing at everything; you can wait for your pitch. Patience, in the end, can pay off.
Trade Secret Tips
Whether this was your first experience with the markets or a chance to refine your skills, the great news is you can build on your investing acumen.
The Globe has plenty of resources and constantly provides updated investing ideas here.
Meanwhile, what if you’re trying to gauge the opportunity cost of paying down debt versus investing? Here’s a helpful way to figure that out.
And, with the RRSP deadline fast approaching, you can calculate your RRSP limit using this nifty tool.
While our inaugural stock picking contest has wrapped up, participants can sign up starting Feb. 23 for the next competition. This newsletter will also be back next week with more on our winner’s journey and additional investing insights.
Until then,
Jon
Jon Erlichman is the founder of Ticker Take on YouTube and a contributor to BNN Bloomberg.