Today was a brutal day, started off slowly and then the selling accelerated after Obama's inauguration. Funny the way people are, people were building up towards his inauguration expecting miracles to happen immediately and when nothing happened, "speculators" like sheep started selling... more selling triggers further panic.
A lot of stocks on my watch list (see prior post) have reached buy target prices -TD, Scotiabank, BMO, Suncor etc. By tomorrow, I should be fully invested .... after that I am just going to sit back and wait for the inevitable recovery (and collect dividends along the way)..... according to some experts I might be waiting until the end of the year, but I am a little more optimistic than that. Obama is going to move swiftly to stabilize the banking industry and then he's going to help slow down foreclosure rates by tackling the bad debts/liquidity situation, and he will start creating jobs by investing in infrastructure. This will take about 6 months, but this will bring back confidence into the people and hope for the future.... funny thing about the economy, it is hope for the future that drives growth.
Now is the time..... when everything looks bleak and everyone is saying that we are in a major recession ... it's usually around this time that we start turning a corner (we are still in a recession but the derivative/rate of decline is close to zero...)
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So this was the week I finally entered the stock market. I took apple and potash before the Q1 and and went for the canadian banks (TD, BMO, RY) on friday. I also added walmart to the list. I plan to stagger my investments over the next few months.
ReplyDeleteBeware...this is coming from a stockmarket virgin...but the irony of the economic crisis is that it has encouraged beginners like myself to finally appreciate finance and economics and start investing. It also helps to have friends with experience around to guide you!
Taking this plunge will be the start of an exciting educational experience...and hopefully profitable!
Welcome to the dark and dangerous world of investing. Just remember the following things, always diversify and pick good solid companies with a good track record, steady dividends/profit and a strong business model.
ReplyDeleteif you want to gamble, gamble using a small portion of your asset base. Remember what downtown said before, it's easy to make up a loss of 10% of your portfolio. It's next to impossible to make back 90% of your portfolio in the event of a single stock collapse.
play safe and grow steadily....25% a year for 30 years will make you a Buffett. He grew his fortune one step at a time.