the main thing I remember about the correction is how it always effected people after.
a good friend who trades stocks, was very conservative after the market crash lost about 20%. I remember talking about BNS, to him it was trading at 8PE and yielded around 8%. the earnings, looked to be flat the next year but things would improve going forward.
he told me if the stock fell 50% he might buy some....that was the answer to many stocks.
had an uncle who lost 26% and did not invest in the market for five years. the bargains for the next 3 years were incredible.
of coarse there were many items to worry about,....always are.
Kneifl agree, if the market falls, it will look at the fed to drop the rates, and the market will rebound, probably..
I hope it does not come to that, because then they will use inflation to get out of the housing mess..... and that may bring more trouble.... especially long term.
in August when there was a sell off, I mainly stayed on the sidelines and bought some stocks when the market started to recover, I do not have to try to buy stocks at their low......
if their is a correction financial stocks will get taken out and shot.
Barclays would be on the list, Bank of America do not follow much but does look interesting.
cdn. banks and US ones would look good,
cdn. banks are mostly short term holds now, however on weakness
BNS, TD, Royal Bank would be buys, CM would not be far behind.
BMO would wait, they may hold some bad paper, and also throw in their natural gas contracts that went bad in the fourth quarter, also Harris bank in the US is not perfroming great.
new management may get all the bad news out of the way..... on a good sell off BMO would be a buy.
TCK, TCK.b stated earlier would buy it in the low 40s and sell high 40s, sell/hold.
just a few week it was over 52 now has slid back to 46.70cdn.
if the stock slid to the low 40s or below would be a good entry....note: in August when Toronto fell 600 pts, in the morning tck went from 42 to 38.
so basically if there is a sharp sell off I just sit on the sidelines, wishing I had more cash (never enough) and then when the market starts to recover slowly buy some stocks that seem great buys.
by the way Barclays has had rumours that they have bad paper, they have denied this and have not heard any more....however that is probably expalins the wait and see the market has taken on the stock.
in a sell off would also look at MS, and GS, which would get lit up....
thanks
selkirk
