Roger S. Conrad

Although falling crude-oil prices have dominated the financial headlines, third-quarter earnings season is under way.

Elliott Gue and I returned after spending several days of talking to subscribers and giving presentations at the World MoneyShow Toronto. Here's a sampling of questions that came up during our talks.

October can be a dangerous month for the market, but this volatility usually moderates and stocks rally through year-end. The Dow Jones Utilities Average has posted a gain in 37 of the past 45 fourth quarters and we're betting on that seasonal strength once again.

Conventional wisdom holds that October is a dangerous month for stocks, which means that investors must think unconventionally to get ahead.

Bill Gross' departure from Pacific Investment Management Company has garnered all the headlines in the bond markets and led to huge outflows from the firm's fund products. But challenging conditions in the bond market are a bigger cause for concern.

We initiate our annual trade on the seasonal strength in utility stocks.

An unsettled market has  rewarded patient investors who kept some powder dry with a number of buying opportunities. Opportunity No. 1: International Intrigue: A strengthening US economy and the Federal Reserve’s push to rein in six years of easy money have boosted the greenback’s value relative to foreign currencies, placing many of our favorite international stocks on the bargain counter. Snap them up now. Opportunity No. 2: Irrational Fear of Rising Interest Rates: The prospect of a stingier Fed has also raised concerns that US interest rates will head significantly higher, undermining returns posted by dividend-paying stocks. I tackle this myth head on and highlight several high-quality telecoms, water companies and electric utilities that have pulled back to favorable price points. Opportunity No. 3: Oil’s Retrenchment: Oil prices have also plummeted of late, fueled by surging US production and elevated refinery outages. This pullback has panicked weaker hands, giving savvy investors an opportunity to buy rock-steady integrated oil companies and first-rate pipeline owners. Opportunity No. 4: Politics as Usual: Uncertainty related to upcoming US elections has likewise unsettled the market and contributed to the market’s recent weakness. We’ll have a full review in the November issue.

Top 10 DRIPs Portfolio holding Chevron Corp has rewarded investors with steady gains for the last two decades.

Former income trust Pembina Pipeline Corp (TSX: PPL, NYSE: PBA) has generated a total return of more than 3,000 percent since October 1998. And it has ample opportunity to grow its cash flow in years to come.

Dashed merger hopes, unfavorable regulatory environments and dim prospects signal investor caution is still in order for these companies.