Canadian Money Forum banner

1 - 13 of 13 Posts

·
Registered
Joined
·
278 Posts
Discussion Starter #1
Hey guys, are we having fun yet? I'm hanging on and enjoying(?) the rollercoaster ride. So far I haven't sold anything. In fact I picked up some extra TD, but it seems I bought in a bit too early. :(

A friend of mine is saying he's noticing a pattern. Lately, when the market is up, then it is immediately followed by a few more down days. He wants to sell everything today, because the market is up, and then buy back in tomorrow at a discount. What do you guys think?
 

·
Super Moderator
Joined
·
2,788 Posts
A friend of mine is saying he's noticing a pattern. Lately, when the market is up, then it is immediately followed by a few more down days. He wants to sell everything today, because the market is up, and then buy back in tomorrow at a discount. What do you guys think?
Bought monday and sold today for some cash, first swing trade I've done in over 15 years. Of course this is not with my whole portfolio, just a small bit of play money ... got enough to get some of that ebay TP now!
 

·
Registered
Joined
·
321 Posts
It might be a good idea to buy now if:

1) You have cash available for investing (not grocery cash)

2) Your pre-determined asset allocation calls for you to invest (e.g. when setting up your portfolio, you decided you want 40% in stocks, and due to the declines, you're down to 35% -- in that case you can buy now to bring that back up).

It's probably a bad time to sell equity. And I definitely wouldn't day trade now. YMMV.
 

·
Registered
Joined
·
15,884 Posts
I would not dream of selling my long term equity and bond positions. In recent days I've heard from some friends saying they are totally out of the market... I think that's a very risky attempt to time the market.
 

·
Registered
Joined
·
2,963 Posts
It is a good time to take stock and see what you can do to limit losses or even gain. Don't just sit on your hands. Or believe that your preconceived investment plan still works in this environment.

I have been pruning. Sold off all remaining IPL and maybe PPL too (haven't looked). Still have TRP as major pipeline stock, but that is the limit of my Canadian energy.

Sold Rogers - Even at today's low prices, minimal dividend. Still have other telecoms (BCE/T)

Looking at trimming some others too. Maybe buy more utilities if prices pull back or grocers. Later, stocks that benefit from increased government spending (infrastructure projects)

Will hold cash until markets tank again. Then buy stocks that I feel are more likely to recover.
And/Or add to fixed income because that too has been reduced. Some great yields available on high quality corporate bonds and perpetual pfds.
 

·
Registered
Joined
·
2,702 Posts
...............................
Sold off all remaining IPL and maybe PPL too (haven't looked). Still have TRP as major pipeline stock, but that is the limit of my Canadian energy.
.................................
Maybe buy more utilities if prices pull back or grocers.
.................................
But it seems like you're selling sectors that have lost the most and buying sectors that have held up.

Isn't that kinda backwards.

ltr
 

·
Registered
Joined
·
34 Posts
Will hold cash until markets tank again. Then buy stocks that I feel are more likely to recover.
And/Or add to fixed income because that too has been reduced. Some great yields available on high quality corporate bonds and perpetual pfds.
Too bad I spent all my saving on RRSP right after christmas. Buying now would have been better. Anyway, I'm slowly saving again (now at almost 5k) and I'm wondering when I should decide it's time to buy again. Not easy to guess.
 

·
Super Moderator
Joined
·
2,788 Posts
But it seems like you're selling sectors that have lost the most and buying sectors that have held up.

Isn't that kinda backwards.

ltr
Thats the way I read it as well ... sounds backwards?

Both IPL and PPL are showing greater than 15% gains today.
 

·
Registered
Joined
·
3,604 Posts
Interesting to see some reactions here...if this little market blip causes people to change their investment philosophy from when markets only went up then they were doing it wrong from the start.

I haven't sold a thing and won't,,,haven't bought a thing either...waiting for an environment when the TSX doesn't gain or lose 10%. Maybe once we're down another 20%
 

·
Registered
Joined
·
62 Posts
It is a good time to take stock and see what you can do to limit losses or even gain. Don't just sit on your hands. Or believe that your preconceived investment plan still works in this environment.

I have been pruning. Sold off all remaining IPL and maybe PPL too (haven't looked). Still have TRP as major pipeline stock, but that is the limit of my Canadian energy.

Sold Rogers - Even at today's low prices, minimal dividend. Still have other telecoms (BCE/T)

Looking at trimming some others too. Maybe buy more utilities if prices pull back or grocers. Later, stocks that benefit from increased government spending (infrastructure projects)

Will hold cash until markets tank again. Then buy stocks that I feel are more likely to recover.
And/Or add to fixed income because that too has been reduced. Some great yields available on high quality corporate bonds and perpetual pfds.
I agree. I was always a buy and hold long term investor but this crisis is a once in a lifetime occurrence that caused me to re-evaluate.

In January I began taking some 2019 profits and dumping some long term dogs to raise cash. Not a "market timing" exercise but a one time restructuring inspired by a world pandemic on the horizon.

I'm waiting to re-deploy too. But markets up ~15% since yesterday is surprising. I thought a small bump with the stimulus package but I guess nothing should surprise me lately. Need some calm.

The VIX is still at 61 but the TP index is settling down. Costco not out. Those are my buy signals.
 

·
Registered
Joined
·
2,963 Posts
But it seems like you're selling sectors that have lost the most and buying sectors that have held up.

Isn't that kinda backwards.

ltr
Rogers, IPL and PPL are stocks I wanted to sell before the recent crash. I have now sold them and will invest the proceeds where I see fit.

No sense having a fixation about some type of arbitrary sector allocation. When time comes to buy, better to use common sense and put proceeds in stocks that are likely to recover sooner than later. Sectors secondary consideration.
 

·
Registered
Joined
·
417 Posts
The VIX is still at 61 but the TP index is settling down. Costco not out. Those are my buy signals
As an aside, I was in the new Stoney Creek Costco today. They're still out of TP and other Corona-ware.

But the store was eerily empty. Only a handful of shoppers. But they were setup really well. Lots of staffers spraying and wiping, plexiglass shields at the cashout and yellow tape markings every 6' to separate the customers checking out.
And no Checkpoint Charlie when leaving the store. You could just walk out.
 
1 - 13 of 13 Posts
Top