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Hi everyone, I have been following your forums for a few weeks now and I have learned alot.

I have a question about investing now.

Given that the TSX is currently up around the 10K mark, which is up about 1/3 from its levels in March (it was around 7.5K), do you think now is a good time to invest, or are things headed for a correction.

It just seems to me that the market has risen very sharply in a short time, but given the circumstances esp. in the US with the car companies...still unresolved and could result in a lot of job losses...are things going to turn down again?

I am generally not a market timer. I save each pay cheque but am wondering if I should be holding my funds in my ING account and wait to invest if things are going to turn back downward.

Any thoughts?
 

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I personally think this bull run was a load of bull. I'm sitting on cash wait for some low points. Maybe the market won't go as low as it did in march but I think there is still downside to what it is now. The problems that existed 6 months ago are still there and the government has only used some slight of hand to make things look better then they are.
 

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Patience.

There is always opportunity but there just happen to be many more when the masses panic like in late November and early March.

I would spend as much time as you can creating 'watch' lists of solid companies you would like to hold for years. Another list could contain small-caps if you are so inclined. The easiest way to monitor these lists is set price alerts at a financial website like GlobeInvestor. You can have the alerts texted or emailed so that you can use some dry powder.

I can tell you from personal experience that there is much 'comfort' in being paid regular dividends while waiting for stock prices to rise. In fact if you invest principally for dividends/distributions than you shoold not care too much what the stock price is doing at any time.

I personally do not discount a large correction or even new lows which would be great.
 

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Twiga

This is my first post so please forgive any mistakes. I am a dividend investor, not so much a trader, but I have bought a number of stocks in this rally that are now trading at a bit or more below the level at which I bought them. Having heard a number of guests on Market Call and Market Call tonight advise taking money off the table, my question to other members is whether you would take the loss of between $20 and in one case about $200, or hold on. And the other question is whether for such 'solid' stocks as the telecoms and banks, REITs and financials such as PWF, do you hold regardless for the dividend or also liquidate. I was burned badly in the meltdown (no calls from our advisor during the whole time so we "broke up") and have spent the last 5 months educating myself on dividend and income investing, but I lack experience in how to judge "stop loss" placements. Any ideas where to read up on such topics?
 

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On balance, I've been selling into the rally (although I have made some buys). I see it as a positive sign that everyone is questioning whether this is a true rally or a bear trap. It shows there is still a fair amount of caution out there. I even see it as positive that the market is taking several pauses on the way up.

That being said, May is a typical high point and there is reason to the saying, "Sell in May and go away". I guess this is all a round about way to say that its really hard to know which way the market will go in the short run. Think long term. :cool:
 

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Given that the TSX is currently up around the 10K mark, which is up about 1/3 from its levels in March (it was around 7.5K), do you think now is a good time to invest, or are things headed for a correction.

Any thoughts?
I believe that we will not see those lows again back in early March....the unprecedented fear of a total world-wide banking collapse has subsided for now. Recall back in early March, US banks like Citigroup declared that they will actually turn in profits moving forward was like music to investor’s ears ... this has alleviated some of the fear for the time being. We are certainly not out of this mess by any means. As they say, the market pendulum swings from fear to greed and back again...it was no wonder that financial stocks, which were the first ones to drop in the midst of the crisis were also the first to rebound – and sharply.

I’m generally not a market timer as well, but by looking at this crisis with a bit of common sense, I was able to make up for most of my losses by aggressively loading up during the rebound. However, I don’t believe now is the time to stay aggressive. I would certainly not add to anymore financial stocks. In fact, I’ve unloaded most of my Lifecos commons and swapped them for an equivalent amount of debt (i.e. prefs.). Defensive stocks would be my pick for the next little while – utilities, energy (midstream players instead of upstream and certainly not downstream energy) and debt would be my “3 picks”. I guess the short answer to your question is yes, now is still a good time to invest, but be careful and stay defensive. Good luck and proceed with cautious optimism!;)
 

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This is my first post so please forgive any mistakes. I am a dividend investor, not so much a trader, but I have bought a number of stocks in this rally that are now trading at a bit or more below the level at which I bought them. Having heard a number of guests on Market Call and Market Call tonight advise taking money off the table, my question to other members is whether you would take the loss of between $20 and in one case about $200, or hold on. And the other question is whether for such 'solid' stocks as the telecoms and banks, REITs and financials such as PWF, do you hold regardless for the dividend or also liquidate. I was burned badly in the meltdown (no calls from our advisor during the whole time so we "broke up") and have spent the last 5 months educating myself on dividend and income investing, but I lack experience in how to judge "stop loss" placements. Any ideas where to read up on such topics?
Generally speaking you, as a dividend investor should have bought these stocks at their current price because you saw value and the dividend was at a decent level and fairly secure (with potential for growth). That being said you shouldn't be concerned about selling since the dividend will provide the desired income...or at least that's the theory.
 

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Having heard a number of guests on Market Call and Market Call tonight advise taking money off the table, my question to other members is whether you would take the loss of between $20 and in one case about $200, or hold on.
Don't make any investment decisions based solely on what these Market Call analysts proclaim... although many have interesting and informative info, do your own research before investing.

I was watching Ross Healey on Market Call tonight. This guy is the eternal cynic when things are bad. He was on the show back in early March, just before the huge run-up, declaring that the TSX had another major downturn and that he was minimum 50% cash for his clients. Well, tonight he let everyone know that did well in the rally and had "switched views on the financials". Well, I don't know how you can be bearish, in cash, and still made money on the rally. No one gets it right everytime, but at least own up to it and admit you wrong on that call.
 

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I am underwater with a few recent recent purchases as well and my view is that the market is correcting - but it is not going down to the March lows - probably just back to the 50 day MA at worst. So, I am holding as here is sure to be better times to sell ahead.

I have been taking profits in the past few days in stocks where there are profits and am holding those where there are no profits.

This is my first post so please forgive any mistakes. I am a dividend investor, not so much a trader, but I have bought a number of stocks in this rally that are now trading at a bit or more below the level at which I bought them. Having heard a number of guests on Market Call and Market Call tonight advise taking money off the table, my question to other members is whether you would take the loss of between $20 and in one case about $200, or hold on. And the other question is whether for such 'solid' stocks as the telecoms and banks, REITs and financials such as PWF, do you hold regardless for the dividend or also liquidate. I was burned badly in the meltdown (no calls from our advisor during the whole time so we "broke up") and have spent the last 5 months educating myself on dividend and income investing, but I lack experience in how to judge "stop loss" placements. Any ideas where to read up on such topics?
 

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Not sure where the "makets" are headed and equally not sure where the stock "markets" are headed. Is there not a consensus that these things are unpredictable in the short term but over the long haul -- shown by the Andex charts -- equities tend to rise? In the short term, I like the phrase used by American personal finance writer Jason Zweig: "I don't know and I don't care."

www.wealthyboomer.ca
 

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I'm up to 50% cash in my Tax-Free "Trading" Account now. Waiting for a couple of down days in a row then trying to find some buys.

Futures pointing higher today though.
This is a very hard game to play. With apologies to market timers out there, it is almost impossible to predict short-term trends. Stocks are "reasonably" priced now; so it may be a good time to buy them compared to the main alternative: bonds.
 

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Hi everyone, I have been following your forums for a few weeks now and I have learned alot.

I have a question about investing now.

Given that the TSX is currently up around the 10K mark, which is up about 1/3 from its levels in March (it was around 7.5K), do you think now is a good time to invest, or are things headed for a correction.

It just seems to me that the market has risen very sharply in a short time, but given the circumstances esp. in the US with the car companies...still unresolved and could result in a lot of job losses...are things going to turn down again?

I am generally not a market timer. I save each pay cheque but am wondering if I should be holding my funds in my ING account and wait to invest if things are going to turn back downward.

Any thoughts?
My thoughts are:
1) The future is not knowable so it is a waste of time to think about it.
2) The best time to buy is when you find a company you understand, with strong historical financial statements, selling at an inexpensive price.
 

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Not sure where the "makets" are headed and equally not sure where the stock "markets" are headed. Is there not a consensus that these things are unpredictable in the short term but over the long haul -- shown by the Andex charts -- equities tend to rise? In the short term, I like the phrase used by American personal finance writer Jason Zweig: "I don't know and I don't care."

www.wealthyboomer.ca
I've been investing longer than I care to admit...in the last ten years, the S&P has gone sideways to the point that you can almost do better with money under your mattress. Many may not consider this a "long haul", but it has been long enough for me. I can't see things getting better with the unbelievable amount of debt the United States is carrying. In my mind, the States is going down the toilet fast...I just hope that Canada and other countries can somehow detach themselves from them and prosper despite what is happening there.

My point is that we should care, and understand what is happening around us, and adjust your finances accordingly...
 

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Thanks for the comments. In keeping with my strategy, I am hanging in with the solid dividend-payers in my diversified portfolio, with the preferreds and Claymore's Corporate Bond ETF as the outer defences, sort of like a vegetable garden!

One thing I've noticed is how successive guests on Market Call and Market Call Tonight will have diametrically oppposed positions. The first loves Telus and Shaw, for instance, while the next goes for BCE and Rogers, and on and one. It makes my head spin.....

I subscribe to the Post and read the Globe Investment pages online or at the library. Anyone have further resources that they like?
 

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If your investing horizon is 20 years plus and your investing strategy is fundamentally sound (proper asset allocation etc etc), you should not worry about perfectly timing entry or exit.

I would re-direct the question from "when" to execute to "what" are you executing?
 

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Not sure where the "makets" are headed and equally not sure where the stock "markets" are headed. Is there not a consensus that these things are unpredictable in the short term but over the long haul -- shown by the Andex charts -- equities tend to rise? In the short term, I like the phrase used by American personal finance writer Jason Zweig: "I don't know and I don't care."

www.wealthyboomer.ca
Good quote. Strongly agree.
 

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Thanks for the comments. In keeping with my strategy, I am hanging in with the solid dividend-payers in my diversified portfolio, with the preferreds and Claymore's Corporate Bond ETF as the outer defences, sort of like a vegetable garden!

One thing I've noticed is how successive guests on Market Call and Market Call Tonight will have diametrically oppposed positions. The first loves Telus and Shaw, for instance, while the next goes for BCE and Rogers, and on and one. It makes my head spin.....

I subscribe to the Post and read the Globe Investment pages online or at the library. Anyone have further resources that they like?
In order to differentiate between opinions, I use Morningstar (they have 10 years of historical financial statements), Yahoo! (they have a free stock screener), and I also look at the SEC Form 4 submissions (showing insider buys/sells).

In this economic environment we are buying buying buying. No dividend. No GICs. No bonds. No short-term savings. Stocks. There is absolutely no way we are going to let an opportunity of a lifetime just pass.
 

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In this economic environment we are buying buying buying. No dividend. No GICs. No bonds. No short-term savings. Stocks. There is absolutely no way we are going to let an opportunity of a lifetime just pass.
Hey, if this strategy works for you, my hats off to you. Definitely not for the faint-of-heart. Did you use the same strategy going into the crash? If so, you must have taken a massive haircut, if not then let me borrow some of your horseshoes ;).
 

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Watching BNN yesterday I caught a headline but missed the story - regarding a new study that concluded that buy and hold works if you have a time horizon of 43 years. Did anyone catch the story?

Even Benjamin Graham who is oft quoted by those committed to buy and hold says in "The Intelligent Investor" - That the intelligent investor should endeavour to buy stocks when they are quoted below fair market value and SELL them when they rise above such value.

Stocks are not meant to be held forever...
 
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