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Last Week was Rough on the Canadian Market

Posted on September 8, 2008 at 1:58 pm
Filed Under Financial Markets, Financial Planning, Investment Planning, Retirement Planning

It is no longer news that last week was a rough one for the S&P/TSX.

In fact, the Canadian Market fell over 900 points within the four trading days that the market was open which just happens to be one of the worst single weeks in Canadian history. Although we avoided a recession in the second quarter of this year by only 0.3%, it is clear that we are definitely still hurting in terms of our market strength.

Your Take-Away: The results of last week are not easy to swallow, especially if you were like many others and saw your investments take a pretty steep fall. Despite the fact that I work within the financial world, it’s still not fun or easy to see my portfolio fall the way it has over the last few months. That said, I also believe that although we are probably not at the bottom of this fall, we have the chance to buy stocks and funds while they are on sale and God willing, just before they rebound. I’m not telling you to invest everything you have in the market, but it may not be a bad idea to take advantage of “Dollar Cost Averaging” and start getting back into the market in smaller amounts over the next few months.

Keep this in mind. Warren Buffet once said that he “sells when others are buying, and buys when others are selling”. I know that’s a paraphrase, but the concept is crystal clear. It’s up to you what you do, but I’m definitely taking advantage of this market as opposed to running from it.

Until next time, have a Magnificent Monday!

Chris

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