Kevin O’Leary Shows His Patriotism by Advocating Investment in Canadian Stocks
– Momentum Public Relations –
Kevin O’Leary, co-founder and chairman of O’Leary Funds, is one of Canada’s most respected investors and financial commentators. He came from humble middle class beginnings, but built a company which he sold for more than $4 billion dollars. O’Leary has long shunned the Toronto Stock Exchange in favor of the more diversified S&P 500, but it appears he has suddenly gotten in touch with his patriotic side.
O’Leary is the father of two children, Savannah, 22, and Trevor, 19. He’s always been open with his kids about money, offering regular advice on financial responsibility as well as sound investment tips. His most recent tip was for both his son and daughter to keep 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of their portfolios in Canadian stocks and 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in dividend paying S&P with 10 sectors of diversification. If you’re looking for the right mix of investments in your Tax Free Savings Account, O’Leary advises you to do the same.
In the February 12 episode of Ask O’Leary on BNN, O’Leary told a caller, “The TSX has been crushed because of the energy and energy service sector. I think we’re getting near the eighth or ninth inning of that decline. I’m very bullish should we get our acts together. In other words, hopefully there will be a pipeline announcement in the near future.”
Describing himself as an optimist, O’Leary called Canada a “good buy” for savvy investors at the moment. However, he advised the caller to wait a few weeks until the budget comes out. If the government issues a budget with a deficit of over $30 billion, O’Leary says he’ll withdraw with advice and personally exit Canada in terms of investments. Claiming an added budget deficit would be proof the government doesn’t know what it’s doing, O’Leary said he wanted to wait and see what lawmakers would do before speculating further.
This tidbit was only one of several interesting investment tips O’Leary has offered in the last month. Highlights from recent episodes of Ask O’Leary include:
- O’Leary publicly praised Canadian banks by saying Canada’s intense fiscal regulations made for tightly managed financial institutions, offering extra protection for investors. In fact, he went as far to call them the “best managed financial institutions on the globe” in today’s economy.
- When asked what advice he’d offer for investors debating the merits of Canadian banks versus American banks, O’Leary recommended callers stick to Canadian banks after pointing out the unfavorable nature of the currency conversion. The Canadian dollar closed at 71.77 cents on February 10, a substantial drop from its high of 105.95 in July 2011. Yet, O’Leary remains convinced the loonie is near the end of its struggle and will eventually bounce back stronger than ever.
- For those interested in investing in rental properties, O’Leary said the best investment is pay down the mortgage on the property as soon as possible. Using the income to reduce the debt guarantees increasing returns on the building as the debt gets paid off. Relaying a story about an immigrant couple who only ate pasta while struggling to pay off their first investment property mortgage, he told the caller, “Get rid of debt so you don’t have to eat beans.”
O’Leary has also been in the news due to his recent announcement that he is interested in running for the leadership of the Conservative Party of Canada. Stating that he had been inspired by Donald Trump’s campaign for President in the United States, O’Leary created further political controversy when he offered to invest $1 million in the economy of Alberta in exchange for Premier Rachel Notley’s resignation.