Nugwa Haruna

[music] Hello I'm Greg Bonnell and welcome to MoneyTalk Live which is brought to you by TD Direct Investing. everyday I will be joined by guests from across TD, many of whom you'll only see here. We will take you through what's moving the market and answer your questions about investing. Coming up on today's show, we have a special edition of MoneyTalk Live. Will be joined by Nugwa Haruna, Senior Client Education Instructor at TD Direct Investing to take your questions about how to better use the WebBroker platform. And Anthony Okolie will be joining us look at the latest and TD Direct Investing index to see whether sentiment is more positive amid that Summer rally we've seen in the equity markets. So here's how you can get in touch with us with your questions. Just email moneytalklive@td.com or fill out the viewer response box under the viewer player here in WebBroker. Before we get to our guest of the day let's get you an update on the market action. Obviously the Summer rally has been tested in recent days. Pretty modest on Bay Street and Wall Street. We'll start here at home with the TSX Composite Index. Let's check out Denison Mines making the biggest jump of the group. Japan saying it's going to restart idle nuclear plans in the face of soaring energy prices. Denison also lost out in a bidding war for Saskatchewan's UEX… Let's check on the S&P 500, the broader read of the American market, the gains are little more solid on Wall Street and Bay Street at this hour. The tune of 26 points, more than half a percent. Of course, the big event of the week comes later when it Jackson Hole becomes a place for central bankers to meet and talk with the current situation and of course, the story of the year has been this aggressive tightening were getting from central banks and how much further they need to go in their efforts to tamp down inflation. That's the big one still on the horizon. Checking in with the NASDAQ, the tech space, we see some money moving into that space today at 12,968, the NASDAQ more than up half of a percent. Back in the direction of the crude, a pretty volatile space throughout the Summer months. Really, throughout the entire recovery of the pandemic. Today we have carnival at 10 bucks and $0.11 a share, up almost 6%. And that's a market update. Since we started MoneyTalk Live, we received plenty of questions about the WebBroker platform itself. On today show we will spend some time answering those questions. Joining us now is Nugwa Haruna, Senior client educator and TD Direct Investing. Happy to have you in the studio with us. Welcome. >> Really happy to be here. Thank you for having me. >> There is one were getting a lot. The fact that GICs has been paying better rates than they have been quite some time. The first question is how do you buy a GIC on the platform and are GICs available in US dollars? >> So Greg, as you mentioned, GICs have been a hot topic and, as you mentioned because rates are going up but the returns for GICs tend to be tied to the current interest rates and the environment, investors are able to purchase GICs on WebBroker and some of the advantages of purchasing GICs within WebBroker is that you have access, not just TD GICs but also GICs from other financial institutions. Sometimes investors may ask "why would I be interested in that?" That's because the Canada deposit insurance Corporation covers GICs. So in case the financial institution that issues those GICs goes out of business, they will pay up to a maximum of $100,000 to investors. So once in WebBroker, I'll show you how to find GICs to purchase. You can click on "research" and once there, underinvestment, go "GIC rate sheets." Investors have access to short-term GICs which are anything under 364 days. There are long term GICs but anything more than a year, investors have access to things like cashable GICs. So if an investor wants to break the term of that GIC they have the ability to do that without paying a penalty. Finally there is the market linked GIC where the return is possibly tied to a market index. So if I'm in WebBroker and I'm interested in buying, for instance, three year GS, GIC I would click on three years. Then you can filter by… Or by return whatever that return might look like. You will find US GICs here as well issued just by TD. So let's filter from highest to lowest: an investor would only need to click on the rate itself. So please keep in mind, if you are purchasing GICs within WebBroker, you want to make those purchases between 9 AM and 4 PM Eastern standard Time. Any investor can go ahead in place that order for GICs. >> Interesting stuff. I was actually doing all those moves along with you in my WebBroker. It's almost a private tutorial that we are sharing with the world. I'm in an enviable position right here for the show. Another question, you mentioned it briefly: can you explain how the market growth GICs work? >> When it comes to market growth GICs, the unique thing about them as they do provide investors that principal protection is GICs do. But they may also provide investors an upside. With the GIC, the performance of that GIC, may be linked to the performance of an index. So, once in WebBroker, I'll show how to find these market linked GICs. By clicking on the tab that says "market link". For instance, an investor who may be interested in the market links GIC, the second one here, which is a three year GIC… This GIC, it is, it's return is going to be linked to the performance of the S&P 500 which are the largest 500 companies in the United States. I will mention something with the rates. You will notice that there is a guaranteed minimum that investors would receive in addition to the principal. But there's also a guaranteed maximum that they would receive. One more thing to note here is that unlike regular GICs, when you look at your rates, those rates are annual, these are based over the term of the lifetime of the GIC. So for instance, if the investor ends up with a 15% return, it will be based on three years. So an average 5% per year. >> Very interesting stuff indeed. Let's get to another question off the platform. Can you create a hypothetical portfolio? How do I do that and track its performance in WebBroker? >> That's a great question. Because we get that a lot of investors were looking to practice with paper money. On WebBroker. So investors can utilize the watchlist feature within WebBroker. So in WebBroker, you can have up to 10 different watchlist with up to 10 different securities. So, once in WebBroker, once you have a watchlist, you can actually create some kind of tracker. So let's go into WebBroker and see what that looks like: so, to pull up your watchlist, you're able to do that either by clicking on "research". Under "tools", go to watchlist and once you do that, you can look at your different watchlist. Will use one that we have on here which is the top 10 companies on the TSX 60 index there. So if an investor has this, they may utilize this to see the performance of these companies. But once again, you actually have the ability to track. So I'm gonna click on the option here that says "tracker". Once I do that, you notice that this actually starts to look like a holdings page on WebBroker. Because you have market value of investments, book costs as well as gain and loss. So what you are able to do then is add quantity at an average cost. So let's hypothetically add a quantity to this. For security, you just click on it and let's say I own 49. 49 of this stock. Let's say the cost of this stock was $120. Let's put save there. Once you do that, you notice, Greg, that now you have a market value and you have a book costs as well as a gain and loss and then an investor can go ahead and do this for the whole watchlist and trackless daily based on the current market value. >> If you're not ready to put real money, how smart would I be if I actually did model that. I imagine when you give these courses, you do good questions about that as well where people say "I'm not ready to do this yet but I just wanted my toes in the water."? >> That's the idea right? Because the investors can use the watchlist to manually or automatically track. Because you are able to see what the potential unrealized gain and losses are and investors can cut it again or rather gauge to see their strategies. >> Thank you great stuff. Lots more questions on the WebBroker platform for Nugwa Haruna. This is the person you want to send your questions to. A reminder of how you can get in touch with us. Email us, MoneyTalkLive@td. com or Philip the viewer response box here in WebBroker. And now let's take a look at how the markets are trading. Shares of Turquoise Hill Ressources are in the spotlight today. That is global mining giant Rio Tinto sweetens its offer for the Vancouver-based miner. It is now offering $3.1 billion to buy the roughly 49% of Turquoise Hill. It does not already own. An earlier offer to $2. 7 billion was rejected with the accompany saying it did not reflect its full and fair value. Turquoise holds two thirds of a mine in Mongolia with massive copper and gold reserves. Peloton Interactive is making its bikes and other products available on Amazon. In the United States. Peloton is selling its bikes through Amazon's e-commerce platform in an organic way to increase customer access to the brand. Before this partnership, Peloton products were available only through showrooms on its own e-commerce site. Peloton enjoyed a surge in demand for its at-home exercise equipment during the pandemic. But at the end of lockdowns and returned to the gym workouts, the pressure of the business intensified. It appears Canada it appears Canadians were eager to dine out as pandemic restrictions eased in Summer weather arrived. New numbers from stats Canada show a 0.8% increase in food service sales to more than $7 billion in June. There was strength in restaurants and also food services for special events. Ontario and British Columbia led the way in sales among the provinces. And let's take a look at the main benchmark index in Canada in trading. …We are back now with Nugwa Haruna, Senior Client Education Instructor at TD Direct Investing to take your questions. How do we do this? The question on screen. >> That may not be as dynamic as investors want. So, investors have the ability to use the screeners ;we have within WebBroker. And then, based on results they get from their screens, they are able to track what that performance would look like. They could do a back test for the last five years. So let's go into WebBroker and I'll show you how investors can do this. So once it WebBroker, an investor can click "research" and under "tools", would go to "screeners". This allows people to utilize criteria to narrow down the choices that pop up on the screen based on what matters or what is more important to them. So, in the interest of time, let's do this. Let's use some preset screens. This will actually save time for investors as well as those who are not comfortable with the screeners tool yet. You can actually use the preset screens we have. I will go to preset screens here. The question was about top dividend pay. There is a screen already created. It's a "filter in the stocks" that pay high dividends. So when we filter on that. We will go to top dividends here. We will just wait for this. So now we have 561 matches. That's a lot of companies. But what the back test tool in the screeners tool does is it only takes the top 10 in these top 10 results. They create a hypothetical portfolio to see how they perform over a specific period. So we will scroll down. And once we get here, we are actually able to see and compare this portfolio to specific indices. For instance, if an investor says "I want to compare those top 10 security to the performance of the TSX 60 index which are the largest 60 companies based on the most prominent industries in Canada" and they can do that. Were going to go and calculate on screen for the TSX 60. We'll just name the screen and once again, it's telling you what it's doing. So it's basing this on a strategy of buying and holding for three months, selling, buying again, repeating this every three months. We are using a timeframe of five years. So once that calculation is done, you then see how the top 10 in our screens have performed compared to the TSX 60. So the investor then has an idea of what this would look like. Keep in mind that historical performance is no guarantee of future performance. Once again investors can carry out the strategy over and over again. >> I found that when I set up certain screens when going through WebBroker, it's important that you do your own but remember to save them. I'll set up a great screen and I'll follow through and will go back and realize I didn't save my screen. I've done that more than once and I think I learned my lesson. >> Yes. It is important to save screens. If you get the criteria is that you really like and you don't want to necessarily have to go through the steps again, I will raise I will say the results in your screen may change depending on if the companies in that pop up in the result, if they still fit what you're looking for, they'll stay on there and if they no longer do they will fall off. >> Dynamic market moves. Let's get to another question now. Of you are asking how can I see of view to the technical charts for major indices, vix and other technical indicators? >> Some investors are interested in technical analysis. So there are different strategies that investors can use for their trading. There is fundamental analysis, technical analysis, technical analysis means its basis on historical crisis on securities were technical analysis assumes that all important information about a security is contained in the price of that security. So technicians will look for trends in price to potentially identify entry or exit points or bullish or bearish signals. Investors can do this for individual stocks or the market as a whole. So based on the investor saying they want to do it more for the market, you are able to do that in WebBroker. Once in WebBroker, an investor is able to click on the "research" option. Once here, they have a tab that says "technicals." Within a click on that. So for investors who may not necessarily feel comfortable, carrying out their own technical analysis, they can utilize the technicals. It already gives "buy and sell options". We are then presented with a list. Now investors can actually see bearish which would be potential price drops, bullish wood which would be potential price increases. For specific indices. And finally, investors can actually choose a specific indicators they want to see information for. So we're just going to go under "oscillators" moving divergence here, then… Once an investor does that… They can see for instance if there is bullish or bearish indications on different indices internationally as well. > Always interesting. Once you start to go into the world of technical analysis, just how many different indicators are available to a person. I mean, it's a long journey but an interesting one if somebody does want to jump into that space. WebBroker can help them along that path. >> Right. And it is important when investors utilize indicators, if you don't necessarily want to use them in isolation, they may be prone to false signals. So investors tend to use different indicators together at the same time. You might fall into the whole idea of over analysis paralysis will be put on too much information, you might get confused. So investors do want to take the time, finding what works for them and then use those indicators. >> A lot of technicians I've interviewed over the years would say "I'm interested but the price tells me what I need to know. " But then they have fundamental people in their shop to saying maybe they'll talk to the fundamental people very good to have a diverse discipline like you said. As always make sure you do your own research before you make any investment decisions and we will get back to your questions with Nugwa Haruna on the WebBroker platform in just a moment's time. A reminder that you can get in touch with us any time by emailing MoneyTalkLive@td. com. Let's get a quick update on the market action right now. Inflation taking its toll again. This time Nordstrom. The company says customer foot traffic and demand pull back significantly starting in late June. Nordstrom says it is dealing with excess inventory. The warnings come despite big earnings for Nordstrom. Let's say go to the broader markets right now. We had a few choppy days off of the back of that sum a rally that we've been enjoying. It depends on your positioning. But today we do have some green on the screen. The TSX, a modest 51 points, a little more than 1/4 of a percent. Seeing money move into uranium plays. Let's take a look at Cameco right now… Of course as we told you earlier, Japan talking about restarting the nuclear plants in the face of soaring energy prices. Definitely discussion to be had in that place. We've had the discussion several times so far and will continue to have it here on MoneyTalk Live moving forward. Let's check in the S&P 500 now, that broaderof the American market, 25 points… Good for a 60 business point gain. This strength is really widespread. the NASDAQ is up three quarters of a percent. The energy trade, how choppy the crude oil trade is been recently. Occidental Petroleum now at 7433, up a pretty modest 73 basis points. Before we get back to questions with Nugwa Haruna, a reminder of how you can get in touch with us. Our guests are eager to hear what's on your mind some sinister questions. There are two ways to get in touch of us: you can send us an email any time, MoneyTalkLive@td.com or use the question box right below the screen here on WebBroker. Just writing your question and hit send. We'll see if one of our guests can give you the answer you need right here at MoneyTalk Live. We are back with Nugwa Haruna from TD Direct Investing, taking your questions about the WebBroker platform. And how to best utilize it. Let's get to another one: are there any tools that can help build a bond portfolio in WebBroker? >> All right, so we just touched on how, with interest rate increases, fixed income securities whose returns intended to be tied to interest rates, it tends to become a hot topic and bonds are one of those. What bonds tend to do is, potentially provide investors with you know, interest payments. Typically these are semiannually. For an investor was potentially looking for some of these fixed income streams, they may consider using bonds. they could build a hypothetical portfolio to see what that would look like. We look at stocks where the idea would be market return. Investors can look at it in terms of "what would my income be over time?". Within rope WebBroker investors can do that as well. An investor can click on "research". Under "investments". This time we will click on "fixed income". An investor can create a portfolio from the ground up. But will use one of the ones already here in WebBroker. In this case, we will use the A- rated 10 year corporate ladder. Just to tell you a little bit about what that means. Made of 10 year bonds, rated A and up. The potential income would be every month can be seen and all you can do is create a report for you and you were able to pull that up. So I'm going to pull that up for us. And so, once you do that, investors are able to see a few things on screen. An investor, for instance, can see how much you're going to end up paying for the specific bond, which would be almost 47,000 but the face value would end up being 50,000. But most importantly an investor can see what the income would look like by going to the second page. Once there here, you can actually see what the total monthly income would be. So in January, that investor can expect a higher stream of income. Nothing in February or April, August or October. And then some in March, May, June and the rest of the year. So this investor can plan accordingly. >> Great stuff. Let's get to the next question: is it possible to see what companies make up an index such as the S&P 500 or the NASDAQ? I think we have a lot of people here wondering that. It actually means something in terms of their constituents. >> Yes. I know a lot of times you have investor saying "I want to buy a specific company, I want to buy the NASDAQ" right? Then we start to explain that the NASDAQ is an index or the S&P 500 is an index. What it is as it is a hypothetical portfolio that follows a specific market segment and then it attracts rather it tracks the performance of that segment. We hear the S&P 500. Some of them are easy to deduce the companies they are tracking. S&P 500 has 500 companies from the US. If investors want to see those companies being tracked in the S&P 500, you can do that in WebBroker. Once in WebBroker, an investor would click "research". You're going to notice we focus a lot on clicking on "research" today. Then click on "indices". What this will do is show investors some of the major indices information on WebBroker. Were gonna scroll down here. Then, once an investor finds the specific index they are interested in, you just need to click on their and once you do that a little box will pop up. It gives you information about the members. Let's click on "members". This will have all the companies that are in the hypothetical portfolio tracking. That performance being tracked. You see up or down. Investors can filter this either by the size of the companies being held in that specific fake portfolio or dividend yield if they are more income investors. So they can do that in WebBroker. >> I did not know how to do that before Nugwa. Very cool. I need this information sometimes in terms of hosting the show. So I know the audience is learning as well. Let's get to another question: what if I wanted to receive a market review update every time a report I follow gets updated? This is important. You want to stay on top of time and information. >> Right. WebBroker has some really great reports by TD analysts as well as by third-party research farms. Some of these reports are outdated. They could be daily. It could be weekly. And some investors want to keep track of that. So within WebBroker, investors can find these reports and you would go "research". Under that, investors can go "reports". Once investors see these reports and they are often updated… Let's say, before I login, I want to know that it is a new report. Not one that I looked at yesterday: investors can actually set alerts for that. So under "alerts", at the top right of the screen, investors can set alerts under "news and research". So, once here, you can actually dedicate this alert to receiving an update on when a new report has popped up. And that investor can decide to receive that by email. So you want to add your email address on there and then save that information. So that's a good way to get updated on a report that you've been following. >> Imagine falling behind in waiting for a piece of information. Great as always. We'll get back to your questions with Nugwa Haruna in just a moment. As always, make sure you do your own research. You can get in touch with us any time by emailing us at moneytalklive@td.com. Or you can use the question box right below this screen here on WebBroker. Just write in your question and hit "send". See if one of our guests can get you the answer right here at MoneyTalk Live. TD Direct Investing has fresh information about sentiment fairing through the Summer months. Anthony Okolie joins us now with more. Anthony. >> The TD Direct Investing score from 100 being very bearish to be very bullish came in at -8 in July. This indicates that DIY investors are still feeling bearish about markets. TD Direct Investing index is a snapshot of how self-directed investors were feeling based on the activity last month. So I just want to highlight some key interesting insights here from the report. First, the proxy for chasing stocks at 52-week highs actually fell to -24 in July. That's because we saw fewer self ^... ¸investors, taking advantage of buying buy the dip at the bottom. On some beaten-down stocks. Now, when we break things down by age, the Genesee, millennial's, these are individuals born from 1981 and after. They are the least pessimistic age group. They favour IT stocks. On the back of second-quarter profits in the sector. When you take a look at some of the stocks by the agency and millennial's, we see focus on Amazon, Tesla and Game stop among the top box stocks there. When you break it down by region, Ontario investors generally tend to invest in financials where most of the big banks have had offices, they are the most bearish in the last month especially for financials where high interest rates are expected to curb demand for credit. >> Interesting stuff. The sentiment of doing it yourself, when it came to sector… Asset allocation? >> We saw people moving money out of communications into consumer discretionary as well as IT. The sentiment trend there. When it comes to asset allocation, DIY investors are actually rotating out of international equities and into tech heavy US equities. In the sector came in much better-than-expected. >> Fascinating stuff as always. Thanks Anthony. >> My pleasure. >> Money talks Anthony Okolie. Let's check here with the TSX, up 1/4 of a percent. Already showing some movement among companies that buy uranium based on use in Japan. We are seeing other areas including the tech stocks. Let's check on Shopify. Of 5%. 44 bucks and $0.18 a share. South of the board of the S&P 500 the gains are a little bit firmer. Of course the big event is in them to later this week when the central bankers gather in Jackson Hole. We will hear from Jerome Powell and the big question on everyone's mind is "what of all this pivot in terms of Federal Reserve? "… Try to get inflation under control, it's a bit of a debate in the market right now. Jerome Powell will give us some clarity later in the week. Until then, we are making some modest gains. The S&P 500 up half a percent. The TechNet heavy NASDAQ up 8/10 of a percent. Nordstrom, we told you earlier, sounding very similar to other US retailers in recent days. Soaring consumer costs are squeezing households. You pay more for food, you pay more for housing… Paying less on some discretionary apparel items as well. Back now with Nugwa Haruna from TD Direct Investing. Taking your questions: are there other ways to measure and compare risk between different investment funds? We are getting deep. >> When it comes to investment funds, investors utilize these as ways to either reduce their time in terms of researching for specific securities and sometimes investors are saying "what exactly am I holding and how risky is this investment?" There are risk measures that investors can use to measure how, on a scale of risk, house how risky it is in terms of fluctuation that you can expect based on what you're holding. You we can find those, for instance the beta within WebBroker. Let's go into WebBroker we can take a look at these. An investor would go "research" and let's say an exchange traded fund… In this instance, we'll just pull up on the tracks an index that we talked about. Let's say, in this case, will say the Hxt. This one tracks the TSX 60. An investor can say "okay, I want to know a little more about this before I buy." One of the things they can look at is the "best fit index". This specific fund is tracking. It's pretty straightforward because it is in the name of the fund itself. And then, if you want to see what the risk measures are, there is actually a tab dedicated to that and that is performance and risk. So, once you click on there, there's a little bit of information to dig deep on. But I want to just focus on two things that were mentioned in there: the first would be BETA. If investors want to definition for these terms they can click on the names and see what that means. So for instance, the BETA tells the investor based on the historical performance of this fund, how the fund has performed any time there's been a change in the benchmark index that we just looked at. So that means, when we see a fund with the BETA of one, this tells us anytime the TSX 60 has been up by 10%, this fund has also been up by 10%. So it's actually perfectly correlated. And so, for instance, if an investor is a fund that is a say, 0.5, automatically that investor putting on the index, if it's up 10%, that fund was up 5%. So that's one way investors can look at information. When it comes to the Rsquared, what that tells the investor is how closely it's related to that specific benchmark. So when funds are created, they do have to have benchmarks. In this case, we've seen that based on this number, which is 99%, so almost 100%, it means that the securities in the specific fund are almost perfectly matching the securities in our hypothetical portfolio of the TSX 60. So you might actually have a fund that may be only holds 70% of securities that matched the TSX 60. So in that kind of situation, there are maybe 70. So the performance of the index itself, only 70% of what is holding, is relating to the fund itself. Investors can take a look at this information within WebBroker to help make better decisions as well. >> Great stuff. Let's get to another question: if I'm interested in tracking the performance of international markets and comparing them to North American markets, is there a way can do that in WebBroker? >> Investors can do that now in WebBroker. You are able to see high-level performance of the markets. But, there is a way to actually save this information and come back to it at a later time. It could be daily, it could be on an annual basis… So let's go into WebBroker and will take a look at that. So, once in WebBroker, an investor would click on "research" to find information about these international indices would be the overview page. That's one option where you would scroll down and the investor will be able to see, you know, just how some of these international indices have performed. Alternatively, an investor can say "I want to track this on a chart." So let's go ahead and do that and will use the basis of the Dow Jones industrial average which tracks the most prominent 30 companies in the United States. I'm going to click on here. But this time instead of going "members", I'm going to go "charts". Once I'm here, I can see a five-year chart in terms of a performance of the Dow Jones industrial average. But maybe I want to add comparison and see how markets are performing in Europe as well. So under "comparisons", an investor would click their and scroll down… You will be able to find some additional markets. So for instance, we can add the French index there. Let's add the German index as well… That we can also add, let's go ahead and add the Japanese index. So once here, I'm actually now able to see, based on the legend here, I can see how these markets are performing. You can always change your timeframe for five years to see what that performance looks like. Then an investor can save this to review later. So you just go "save". You want to save your settings and you can call it whatever you want and go back and review the next day. You don't have to go through the steps every day. >> Great illumination on the WebBroker platform. I just had an idea which would be to my benefit. The next time we do this, and I hope you will do it with that us again at some point, then you should turn the tables on me at the end of the show and say "Greg how do you do this? I will scramble! thank you so much for me here Nugwa. >> My pleasure. >> Next week we will have Ben Chim, Senior Portfolio Manager for Fixed Income at TD Asset Management. He will be our guest taking your questions on fixed income. A reminder that you can email us at moneytalklive@td.com. That's all for our show. [music]