Wednesday, January 23, 2008

staying the course?



I stayed the course. I didn't sell anything on the markets this week, even though I have been tempted to do so for the last year. There was a free-fall this week, and then some wacky correction type action today. Volatility is not good. No one really knows what's up.

BCE has a sale agreement with the Ontario Teachers' Pension Plan for $42 something a share, yet BCE is selling for about $32 right now. OTPP says the agreement stands, and it is staying the course. The Big Banks are offering discounts on new shares releases too.

The US gov't is staying the course with crazy attempts to stave off the inevitable recession until that little redneck GWB is done in the WH. I guess he is trying to protect his legacy of fucking up anything that he touches.

What about you? What course do you see ahead for yourself, and for the larger world?

13 comments:

Aleks said...

I'm pretty much staying the course. I thought about changing my asset mix to more bonds earlier in the year but didn't. Now I kinda wish I had. The only thing I did was to sell the stock I'd gotten through my employee purchase plan. I missed the peak by about two days. Maybe I should trust my instincts more.

cabinman said...

This is a period of exceptional financial danger. But once in a lifetime will we witness this kind of financial erosion.

Preservation of capital is paramount. I prefer gold/silver tier one stocks, gold/silver bullion, and t-bills for most of my money. Real estate in Vancouver will collapase six months after the recession starts in the U.S.

The U.S. and world financial system is on the verge of a 1930 like deterioration. What will be left will not look the same as the bank structures we know today. The bankers are attempting to reverse the excess debts of a generation who didn't know what recession looked like let alone a great depression.

The central bankers do not have control over the economy as they have so often asserted. I feel good that I have no mortgage debt.

Panda said...

Don't fight the Fed. When short term interest rates drop enough, people will look for higher returns in equities.

Anonymous said...

I transferred most of my stuff to GICs two months ago. What luck for now, but we shall see long run.

wizardofozziejurock said...

Is anyone using options or futures as a hedging strategy? I'm interested in the concept and have done some paper trades but I don't have a very good sense of how to structure an optimal hedging strategy.

wombatos said...

Stuck most of my portfolio into gold mining over the summer in anticipation of this, and its served quite well so far. Now I just have to sit back, watch the slow motion train wreck, and remember not to panic.

Tony Danza said...

"Stuck most of my portfolio into gold mining over the summer in anticipation of this, and its served quite well so far."

Wombatos, correct me if I'm wrong but weren't the miners one of the hardest hit sectors on the markets the past week? When is the last time you checked your portfolio?

Billy TwoBaulz said...

Tony Danza, if you were to buy into XGD as I did a few months ago, you're still way up. There was a big drop, but you're still way above the S&P and way above where you bought in months ago. For example, I bought XGD at $67, and it's up 2.26% today alone, at $88.15.

http://finance.google.com/finance?client=ig&q=TSE:XGD

Billy TwoBaulz said...

For those who've got the cojones, the junior miners may still be cheap. E.g. OYM, Beartooth, KEFI, Condor, PZG. Dominic Frisby, a pundit in London is keen on this sector.

solipsist said...

For those who've got the cojones, the junior miners may still be cheap

Funny that you should mention that. I'm looking at 3 right now; 2 are Capital Pool Corp's and one is a junior miner going after copper/moly in BC.

I don't have huge balls - I only invest what I can accept losing, but I do like venture capital. It's chicken feed, and I don't buy toys, booze, or eat out a lot.

My big nut is in GIC and "high" interest savings (~4%) and will stay there as my future down-payment.

I see opportunities. I also see dead people...

med gen said...

Well guys,

i sold all my gains
DEll . Mcrosoft etc in march 07. moved mutual funds from equities to money market in july 07. bought gold in jan 08 plus other non housing related .

some went up some a little down

Anonymous said...

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080124/housing_prices_080124/20080124?hub=TopStories

Anonymous said...

I agree completely with cabinman.

The flight to safety, to gold is already happening.