The Bears Are Out
Well, that first week was interesting.
Right away, the stock markets around the world dropped to start 2016.
China, Germany, UK, US, and even in Canada.
Last I heard, the Toronto Stock Exchange has been on a 9 day losing streak. That's 9 straight sessions of closing lower than the opening since, technically, there's no such thing as winning and losing.
The US entered correction territory last week. That's where the markets are down 10% from their last high or something like that. In Canada, the TSX is now in bear market territory. That is, the markets are down 20% from the last high. Which was back in September 2014.
I remember commenting about that in a past post. At the time the TSX suffered a correction from that same September 2014 high. It recovered again, but didn't quite return to its previous high. Now, 15 months or so later, we're officially in bear market territory.
So what does this mean?
Some media outlets are posting articles of doom and gloom.
Now is the time to sell!
Canadians not optimistic about 2016!
The Loonie will go down to 67 cents!
Despite these articles and stories, I'll be sticking to my plan. Since the US and International portions of my portfolio have been so strong, I'll be needing to purchase additional units for my Canadian portion of my portfolio.
That's right, I'll be putting money into VCN. Not taking money out.
Sure, 2015 VCN was something like -9% for the year. The price was down from a high of $31 or so to being under $25 currently.
$6 off? Sign me up.
Even if $31 was overvalued and a more accurate price is $28, it's still a bargain.
Eventually, the TSX will recover. Not sure when. Maybe in a year, maybe 2 years, maybe next week... The point is, when it'll recover my discounted Canadian units will be worth more. Not sure how much more, but it'll likely give my US and International units a run for their money.
Right away, the stock markets around the world dropped to start 2016.
China, Germany, UK, US, and even in Canada.
Last I heard, the Toronto Stock Exchange has been on a 9 day losing streak. That's 9 straight sessions of closing lower than the opening since, technically, there's no such thing as winning and losing.
The US entered correction territory last week. That's where the markets are down 10% from their last high or something like that. In Canada, the TSX is now in bear market territory. That is, the markets are down 20% from the last high. Which was back in September 2014.
I remember commenting about that in a past post. At the time the TSX suffered a correction from that same September 2014 high. It recovered again, but didn't quite return to its previous high. Now, 15 months or so later, we're officially in bear market territory.
So what does this mean?
Some media outlets are posting articles of doom and gloom.
Now is the time to sell!
Canadians not optimistic about 2016!
The Loonie will go down to 67 cents!
Despite these articles and stories, I'll be sticking to my plan. Since the US and International portions of my portfolio have been so strong, I'll be needing to purchase additional units for my Canadian portion of my portfolio.
That's right, I'll be putting money into VCN. Not taking money out.
Sure, 2015 VCN was something like -9% for the year. The price was down from a high of $31 or so to being under $25 currently.
$6 off? Sign me up.
Even if $31 was overvalued and a more accurate price is $28, it's still a bargain.
Eventually, the TSX will recover. Not sure when. Maybe in a year, maybe 2 years, maybe next week... The point is, when it'll recover my discounted Canadian units will be worth more. Not sure how much more, but it'll likely give my US and International units a run for their money.
Comments
Post a Comment