Comments on: Keeping the faith in stocks http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158738 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 03 Oct 2008 04:16:45 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158738 [...] Canadian Capitalist talks about keeping the faith in stocks. [...] [...] Canadian Capitalist talks about keeping the faith in stocks. [...]

]]> By: Phil S http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158399 Phil S Wed, 01 Oct 2008 02:05:08 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158399 To Mike. While the politicians down south of the border seem incompetent... Just look at the clowns that we have to pick from in our upcoming election! Oy vey! I don't think we can base investment decisions based solely upon politicians, otherwise I would be shorting the market for at least the next 4 yrs. I base my macro-economic conditions based upon economic data such as employment statistics, GDP, consumer confidence, etc. I consider the macro-economic conditions when I go down to make individual stock picks or sector choices in ETFs. Right now, the macro-economic conditions look pretty bad, but that doesn't mean EVERY stock will get wiped out. I keep searching for those hidden gems, but it's very difficult to make a decision these days on which companies will defy the broader market. Like CC pointed out, out of the S&P 500 only Campbell's Soup went up on Monday. To Mike. While the politicians down south of the border seem incompetent… Just look at the clowns that we have to pick from in our upcoming election! Oy vey!

I don’t think we can base investment decisions based solely upon politicians, otherwise I would be shorting the market for at least the next 4 yrs.

I base my macro-economic conditions based upon economic data such as employment statistics, GDP, consumer confidence, etc. I consider the macro-economic conditions when I go down to make individual stock picks or sector choices in ETFs. Right now, the macro-economic conditions look pretty bad, but that doesn’t mean EVERY stock will get wiped out. I keep searching for those hidden gems, but it’s very difficult to make a decision these days on which companies will defy the broader market. Like CC pointed out, out of the S&P 500 only Campbell’s Soup went up on Monday.

]]> By: mike at second opinions http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158381 mike at second opinions Tue, 30 Sep 2008 23:55:26 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158381 When the crashes arrive they are quick and scary, however no lessen is actually learned unless the recovery is a very slow one. Most recent "busted bubble" declines have been short term and have allowed the stock sellers to say they were just a speed bump. The 1929 crash had a 20 year recovery and the Japanese are in the end stages (hopefully) of a two decade recovery. So you had better have been well positioned going in, because this sucker has a few years left to run before the U.S. solves its real estate, debt, oil deficit issues.....and if the political leadership is as shown this week you might want to invest a little more in Canada! When the crashes arrive they are quick and scary, however no lessen is actually learned unless the recovery is a very slow one. Most recent “busted bubble” declines have been short term and have allowed the stock sellers to say they were just a speed bump. The 1929 crash had a 20 year recovery and the Japanese are in the end stages (hopefully) of a two decade recovery. So you had better have been well positioned going in, because this sucker has a few years left to run before the U.S. solves its real estate, debt, oil deficit issues…..and if the political leadership is as shown this week you might want to invest a little more in Canada!

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158380 Canadian Capitalist Tue, 30 Sep 2008 23:54:23 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158380 Anon: True. Our personal portfolios are similar to the Sleepy Portfolio and are well-diversified between Canadian, US, EAFE and emerging market stocks. It also has some bonds and REITs. Phil: It is amazing the amount of volatility we are going through. It is almost like a gentle stream (2003 to 2006) becoming a raging stream (2007 to present). You may be right about more pain to come, wish I knew! Anon: True. Our personal portfolios are similar to the Sleepy Portfolio and are well-diversified between Canadian, US, EAFE and emerging market stocks. It also has some bonds and REITs.

Phil: It is amazing the amount of volatility we are going through. It is almost like a gentle stream (2003 to 2006) becoming a raging stream (2007 to present). You may be right about more pain to come, wish I knew!

]]> By: Phil S http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158375 Phil S Tue, 30 Sep 2008 23:28:35 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158375 I am sitting on about 35% cash & short term fixed income securities - but I managed to lose almost $20k of net worth on the 65% of equities that I DO hold back on Monday. Ouch! Over the past year I've been using this opportunity to use my "new" money to build up a bond ladder (actually a GIC ladder, I thought they provide better yields than bonds & T-Bills). My bond ladder still under construction. Last year I also completelt DE-levered my investment account. So, when I think we've officially hit "bottom", or if we've bounced off the bottom and started the recovery, then I can use all of that credit to pour myself back into the market. I don't think we're there yet - I think there's still more pain to come... I am sitting on about 35% cash & short term fixed income securities – but I managed to lose almost $20k of net worth on the 65% of equities that I DO hold back on Monday. Ouch!

Over the past year I’ve been using this opportunity to use my “new” money to build up a bond ladder (actually a GIC ladder, I thought they provide better yields than bonds & T-Bills). My bond ladder still under construction.

Last year I also completelt DE-levered my investment account. So, when I think we’ve officially hit “bottom”, or if we’ve bounced off the bottom and started the recovery, then I can use all of that credit to pour myself back into the market. I don’t think we’re there yet – I think there’s still more pain to come…

]]> By: Anon in Montreal http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158363 Anon in Montreal Tue, 30 Sep 2008 20:38:11 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158363 The 1932 quote is interesting, but only applied to the USA. If you were a stock holder in Germany, France, etc. you got crushed. This is why an all stock portfolio is never wise, even for investors who like risks. Bonds, real estate, gold, etc. all have their place and will protect you. Unless of course total chaos ensues. But that's what canned goods and guns are for. ;) The 1932 quote is interesting, but only applied to the USA. If you were a stock holder in Germany, France, etc. you got crushed.

This is why an all stock portfolio is never wise, even for investors who like risks. Bonds, real estate, gold, etc. all have their place and will protect you.

Unless of course total chaos ensues. But that’s what canned goods and guns are for. ;)

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158345 Canadian Capitalist Tue, 30 Sep 2008 18:08:33 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158345 dgi: Amen. Every crisis we can think of seemed never-ending at that time. We'll get through this one. jon: This isn't the first "bailout" and certainly won't be the last. The S&L crisis, LTCM crisis etc. were resolved only after the Fed got involved. The companies that were reckless are definitely paying the price. The common stock holders in Bear Stearns, Lehman, AIG, Fannie, Freddie etc. have paid the price with losses. I won't argue for executive compensation -- it is excessive and top management still gets buckets of stock options. Where is the outrage from the owners? Why aren't institutional investors demanding accountability from their hired hands? Curt: And you know this how? dgi: Amen. Every crisis we can think of seemed never-ending at that time. We’ll get through this one.

jon: This isn’t the first “bailout” and certainly won’t be the last. The S&L crisis, LTCM crisis etc. were resolved only after the Fed got involved. The companies that were reckless are definitely paying the price. The common stock holders in Bear Stearns, Lehman, AIG, Fannie, Freddie etc. have paid the price with losses. I won’t argue for executive compensation — it is excessive and top management still gets buckets of stock options. Where is the outrage from the owners? Why aren’t institutional investors demanding accountability from their hired hands?

Curt: And you know this how?

]]> By: Curt http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158340 Curt Tue, 30 Sep 2008 15:58:57 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158340 If you can, I would move your investments to precious metals before the market tanks further in the coming days and months. If you can, I would move your investments to precious metals before the market tanks further in the coming days and months.

]]> By: Ben http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158338 Ben Tue, 30 Sep 2008 14:48:03 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158338 Having added additional funds over the last couple of weeks (perhaps should have waited until this week), my index funds (Can Eq, Can Bond, US Eq, Int Eq) are all rebalanced to within 1% of their targets allocations. Riding the waves, whether they crest or trough. Having added additional funds over the last couple of weeks (perhaps should have waited until this week), my index funds (Can Eq, Can Bond, US Eq, Int Eq) are all rebalanced to within 1% of their targets allocations. Riding the waves, whether they crest or trough.

]]> By: Jon202 http://www.canadiancapitalist.com/keeping-the-faith-in-stocks/#comment-158337 Jon202 Tue, 30 Sep 2008 14:19:51 +0000 http://www.canadiancapitalist.com/?p=1332#comment-158337 This market cleanse is good for the system. Eliminate the reckless and greedy management of investment banks and other financial institutions. Just as we complain about tax breaks for new businesses, we should as well for "bailout" plans for corporations. You can trumpet capitalism, then expect a social safety net when you've gambled it all, it's one or the other. This market cleanse is good for the system. Eliminate the reckless and greedy management of investment banks and other financial institutions. Just as we complain about tax breaks for new businesses, we should as well for “bailout” plans for corporations. You can trumpet capitalism, then expect a social safety net when you’ve gambled it all, it’s one or the other.

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