Comments on: This and That: Stocks are cheap but could get even cheaper http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Coldcall http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166846 Coldcall Mon, 10 Nov 2008 11:51:55 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166846 Phil S, Yes ive heard that xmas should be good for buying with people selling for tax writeoffs. To be honest I dont know much about tax-planning so i am probably missing some smart strategies. However, i just have this odd aversion to borrowing in order to gamble..even calculated gambling :-) Phil S,

Yes ive heard that xmas should be good for buying with people selling for tax writeoffs. To be honest I dont know much about tax-planning so i am probably missing some smart strategies. However, i just have this odd aversion to borrowing in order to gamble..even calculated gambling :-)

]]> By: Phil S http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166513 Phil S Sat, 08 Nov 2008 12:15:45 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166513 I'm a firm believer in leveraged investing for the taxation benefits, but in the same breath, I'd have to add that I'm currently completely de-leveraged. This is just one man's opinion, but I think the best time to buy this year will be in December when the tax loss selling occurs in earnest. But I don't think EVERY stock will necessarily go down, only the "dogs" of the TSX. So, I'll have to wait and see exactly which babies may be tossed out with the bath water... Keeping in mind that a lot of the stocks being traded down WILL be garbage, but it may be worthwhile to wade through the garbage to try to find some gems. I’m a firm believer in leveraged investing for the taxation benefits, but in the same breath, I’d have to add that I’m currently completely de-leveraged.

This is just one man’s opinion, but I think the best time to buy this year will be in December when the tax loss selling occurs in earnest. But I don’t think EVERY stock will necessarily go down, only the “dogs” of the TSX. So, I’ll have to wait and see exactly which babies may be tossed out with the bath water… Keeping in mind that a lot of the stocks being traded down WILL be garbage, but it may be worthwhile to wade through the garbage to try to find some gems.

]]> By: Coldcall http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166499 Coldcall Sat, 08 Nov 2008 08:54:18 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166499 By the way, as a Canadian living in the UK, i just found this website and must say its excellent. Thank you. By the way, as a Canadian living in the UK, i just found this website and must say its excellent. Thank you.

]]> By: Coldcall http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166498 Coldcall Sat, 08 Nov 2008 08:50:18 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166498 I agree about being against leveraging. The fact hedge funds and banks were allowed to leverage themselves to the hilt is practically criminal. My motto is if i cant outright buy shares i dont. It also concentrates the mind as to what i invest in. If i was using tons of borrowings to buy shares i think id be way more risky. And i would never be able to sleep at night :-) I agree about being against leveraging. The fact hedge funds and banks were allowed to leverage themselves to the hilt is practically criminal.

My motto is if i cant outright buy shares i dont. It also concentrates the mind as to what i invest in. If i was using tons of borrowings to buy shares i think id be way more risky.

And i would never be able to sleep at night :-)

]]> By: Coldcall http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166497 Coldcall Sat, 08 Nov 2008 08:47:23 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166497 Thanks for the Larry Macdonald link re bank divs. I did buy some BNS late yesterday, and while I agree that most bank div yields are looking extremly attractive at the moment; I'm still concerned that there are skeletons in closets with toxic exposure. However i should think RY, TD and BNS are the safest of the lot though they dont give quite the yields of BMO and CM. I also would not be surprised if at some stage one of BMO or CM gets taken over by one of the big three. Holding either of these if that is the case would be a money loser. Thanks for the Larry Macdonald link re bank divs.

I did buy some BNS late yesterday, and while I agree that most bank div yields are looking extremly attractive at the moment; I’m still concerned that there are skeletons in closets with toxic exposure.

However i should think RY, TD and BNS are the safest of the lot though they dont give quite the yields of BMO and CM.

I also would not be surprised if at some stage one of BMO or CM gets taken over by one of the big three. Holding either of these if that is the case would be a money loser.

]]> By: mike at second opinions http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166413 mike at second opinions Fri, 07 Nov 2008 22:32:04 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166413 The real problem with leveraging is that it always is the right move "in theory"! For most advisors it is an automatic enthustiastic positive response since the commissions arrive up front for them. In reality, leveraging is a bet on market timing and for many, continued employment/cash flow. I thinks it is safe to say those folks who leveraged portfolios in 2006 are in a state of shock. One person I know leveraged into a hedge fund that folded and now has a nice mortgage with a 20 year amortization. Can it work, absolutely! Is it risky, absolutely! Remember though, margin calls only happen at the worst of times! Pessimism has it's benefits! The real problem with leveraging is that it always is the right move “in theory”! For most advisors it is an automatic enthustiastic positive response since the commissions arrive up front for them. In reality, leveraging is a bet on market timing and for many, continued employment/cash flow. I thinks it is safe to say those folks who leveraged portfolios in 2006 are in a state of shock. One person I know leveraged into a hedge fund that folded and now has a nice mortgage with a 20 year amortization. Can it work, absolutely! Is it risky, absolutely! Remember though, margin calls only happen at the worst of times!
Pessimism has it’s benefits!

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166389 Canadian Capitalist Fri, 07 Nov 2008 17:22:07 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166389 I think a lot of people are tempted to take advantage of the severe downturn by leveraging to invest. I'm fully invested and though it is tempting, I'm avoiding leverage. It is hard to play that game. I think a lot of people are tempted to take advantage of the severe downturn by leveraging to invest. I’m fully invested and though it is tempting, I’m avoiding leverage. It is hard to play that game.

]]> By: CanadianInvestor http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166383 CanadianInvestor Fri, 07 Nov 2008 15:18:08 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166383 Hi CC, thanks for the link. Maybe I should have said the panic is over but that doesn't mean we are home free and things will start to go up now. I wouldn't be surprised to see the TSX go down another 1500 points or so, since that would be about the decline of the most severe combinations of credit, banking and stock crises seen in the past. We are merely in the known but nasty territory again. I certainly hope not because I am 100% invested and don't have any spare cash. Big question - should I borrow/buy on margin to take advantage. It's a tough one. Hi CC, thanks for the link. Maybe I should have said the panic is over but that doesn’t mean we are home free and things will start to go up now. I wouldn’t be surprised to see the TSX go down another 1500 points or so, since that would be about the decline of the most severe combinations of credit, banking and stock crises seen in the past. We are merely in the known but nasty territory again. I certainly hope not because I am 100% invested and don’t have any spare cash. Big question – should I borrow/buy on margin to take advantage. It’s a tough one.

]]> By: larry macdonald http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166382 larry macdonald Fri, 07 Nov 2008 15:17:59 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166382 CC Thanks for the link. Big Cajun Man: Personal finance bloggers have to set an example of frugality for their loyal readership. Or else they have to invite more guest speakers from the finance indsutry who will take care of every one's bill. LM CC
Thanks for the link.

Big Cajun Man: Personal finance bloggers have to set an example of frugality for their loyal readership. Or else they have to invite more guest speakers from the finance indsutry who will take care of every one’s bill.
LM

]]> By: WhereDoesAllMyMoneyGo.com http://www.canadiancapitalist.com/this-and-that-stocks-are-cheap-but-could-get-even-cheaper/#comment-166352 WhereDoesAllMyMoneyGo.com Fri, 07 Nov 2008 14:20:44 +0000 http://www.canadiancapitalist.com/?p=1450#comment-166352 Thanks for the plug CC - have a great weekend! Thanks for the plug CC – have a great weekend!

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