I had to get back into the market... bought some Nexen, Suncor and Ivanhoe mines this week. Also shifted all my long term RESP's and DCP's back into Canadian equity funds.
Still holding a large % of cash. Next week when the stress test comes out and shows that the banks need capital, there may be a short term correction for the bank stocks. I will take that as an opportunity to load up on financials.
Surveyed a lot of people and there is so much fear, a lot of folks have cash on the sidelines not wanting to "lose" it is this wall of fear that great bull markets are formed. Market has rallied 25-30% already so there will be some minor dips along the way. However, things are starting to look like it's stabilizing from a free fall.
Recovery might still be a full year away, but signs are indicating that a bottom will be reached in the summer.
Strategy:
+ participate in recovery in my long term portfolio's (RESP, RRSP, DCP)
+ hold strategic commodity stocks as hedge against inflation and inevitable return in demand (oil, gold, copper etc)
- wait for stress test and correction in bank stocks to pick up some financials
- wait for opportunity in watch list to pick up stocks that I like
- wait for trading opportunity - i.e. minor corrections to trade
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