Time in the Market

Did you go to cash during the last pullback at the end of December? Who could really blame you after all the dips we experienced during October and November.

The financial blogosphere was full of advice on how you should 'Buy The Dip' and this was a great buying opportunity.

You know when it's a good buying opportunity? Hard to tell and waiting while you sit in cash can be excruciating.

Buy when you have the money and you see something on sale. That's when you buy. Resist the temptation to buy on margin or using a HELOC. Even though I have a great prime plus a half percent rate I just use it as a reserve credit account for emergencies. I used to use it to flip stocks but not anymore.

It's a very good thing that I've experienced what a pullback in the markets is like or I probably would have panicked. This is not 2008/9 and NO crisis is around the corner in 2019.

Banks

I have often said that the bank is a great place to go get money but a horrible place to leave your money. If you love paying fees and need to keep a relationship with your lender (I do) then why not buy shares in the company?

Even during the last crisis of 2009/9 the banks never missed a dividend payment. According to greaterfool.ca RBC stock had a 11% dividend growth record for the last 20 years.

The stock has also doubled in price in the last 10 years so you have realized income growth along with capital appreciation. As an income investor this is the holy grail of investing. Stay in the market instead of jumping in and out.

The TSX has gained almost 8% just in January. You can see why selling out during the Christmas Eve massacre would have cost you dearly.

Stay in the market, it is time spent invested in the market that really wracks up the gains and not trading in and out.

I own all the banks in various accounts. RBC, TD and BNS are the largest in order of market cap. They are not going anywhere so when they drop in price look at it as a buying opportunity and add more to your holdings.

Good News Stocks Drop

I find this frustrating as hell most times so I just try to ignore it. Company A reports great earnings and the stock takes a dump. Why? The market expected more is the usual answer.

After the close today FB and AMZN will announce earnings. The futures are pointing up for both companies (I own both at a loss) so they are expecting great sales from the holiday time frame but who knows what will happen.

Shares in AAPL are up 5% in the after market after announcing earnings last night. I own an iphone but not AAPL stock.

Just stay invested in good companies and try not to time the market.

I am getting frustrated with all the probs at FB. This company is looking more and more like a public relations disaster. Where else would we go to socialize online? All the alts never last long. Remenber Myspace?Me neither.

My Final Thoughts

Wait for the market and your stocks to rise before you punt them. If FB and TFII continue to dive I will be looking to sell. My TFII is down 20% since purchase.It's been a dog and now worthy of it's own separate blog post. Trucking is not that profitable and this company seems mired in debt.

SELL when the market pops. Good luck buying!