Paper losses – Red Days
Paper losses – Red Days
Fire & Fury
Good morning
Well this week the market has really pulled back this week after Trump’s Fire and Fury Campaign. According to Reuter’s The damage inflicted on world stocks this week by the escalating war of words over North Korea topped US$1 trillion (C$1.27 trillion) on Friday.
On Friday Trump tweeted – “Military solutions are now fully in place, locked and loaded, should North Korea act unwisely.”
I guess it’s safe to say the market will continue to retreat. By using twitter all the time, I feel he’s mocking or egging North Korea on. In my opinion it’s scary to have these 2 world leaders at the controls of Nukes. Personally I don’t think anything will become of it because if it did World World 3 would basically start. China has stated they will be on North Korea’s side if the U.S starts bombing and the U.S. side if they get attacked first.
Paper Losses
Lately when I log into our direct Investing almost all my position’s are in the red. 7 out of my 25 stocks were up a bit while all the others were down. I think those 7 went up because they went down so much on Thursday. I got to say I love seeing all these positions lower it creates better buying opportunity’s. The yield also increases! All I really care about is that they keep paying those dividend’s! Raises are nice too!
I haven’t made any purchases, although I was really tempted with extendicare when it went to 9 bucks and offered a 5.3% yield. Friday it rebounded and is now $9.30. I feel the drama between these 2 will continue and the market will keep retreating. I haven’t sold any positions, the red I see is currently just a paper loss. We don’t actually lose until they go bankrupt or if I sell at a loss.
Unfortunately the American’s love their wars, currently you don’t hear much about ISIS or anything. So why not start a conflict somewhere else? Sometimes political drama creates a opportunity. I feel this will create a great opportunity to buy but I’m waiting for a bigger pullback. If you think this will escalate maybe oil stocks would be a great buy. Any thoughts on Crescent Point Energy?
Black Eyed Pea’s had a great song – Where’s The Love?
By the Way American’s We are not North Korea, we are nice people. Don’t Bomb Us!
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
As they say ‘that’s the way the cookie crumbles’ If you are long on your *quality* positions & are investing as a DGI – then sit tight, let the world do whatever it needs to, let the politicians come & go.
On N.Korea, this will all fizz out, just give it 30 days & trust the Chinese will make it happen – more at stake for them than anyone
Don’t lose sleep over this, simply count your recurring dividend income, likely it’ll all work out for sure.
Now the kicker from the old guy…25 positions is way too many in my book, but that’s just me.
You get folks including bloggers that are always proud to tell you about their gains yet rarely mention losses – so for you PCI, well done coming to the table to mention your down month.
Markets will keep moving in a direction that best suits those on Wall Street.
Single stock pick based on ‘past performance, is not an indication of future results’
Diversification is good for some while one or three positions works best for others.
Maybe a ‘index’ would do better & that’s anyone’s guess
Maybe a Oaken 12 month 2.5% GIC doesn’t look so bad after all.
Are you ready to rotate your inventory?
Are you or have you hedged any of your positions?
Hey John i know you dont like how many stocks I have but i prefer to have it spread vs all in one basket per sector. Gics are not for me. Again im not a pro but a long term investor. I think ill be more intrested in index funds when the market seriously pulls back, too many companies at all time highs. Its true what you say the Chinese have too much to lose here.
on eggs not in one basket yet 25 positions?
Then an ETF or a closed end fund might do it for you?
Canadian eh!
http://www.canoefinancial.com/eit-income-fund/funds/canoe-eit-income-fund/
or one of the many Canadian split share corp, either class A shares or the preferred
Yeah thanks you have told me about them before. I like the way we are doing things at the moment although we are down short term, long term we will be good.
More buying opportunities 🙂
Exactly
Good outlook! In this bull market buying the dips has been a gratin investing strategy! Thanks for the update.
Thanks. I think so as well
Typical summer soft season. The market will pick up in September and rally. I do believe we will have another oil cycle that could last 5 to 8 years and probably the last one. CPG could be a good investment, but very risky. I would go with royalty name such as PSK or FRU, or pipelines. In case of success, the return will be smaller, but the risk will be also minimized. All the reds in the market, are like red tags in the store: SALE!!!
Hey income. I thought it would krep pulling back but tends to be all green now. Wah wah. Now we wait.
I don’t pay attention to the media. If anything, I do the opposite of others. If people are fearful and sell off, I take it as a buying opportunity same as yourself. Keep those cost basis down and just collect and DRIP those dividends!
Hey daze. I agree unfortunately i didnt pull the trigger this time.
I also see red all the time, not just after this hopefully temporary crisis. Total value for my portfolio is 4% down, but as long as the dividends keep on coming I won’t be worried (or try not to anyway :))
My portfolio in general is up just on that one day almost every postion dropped in price. Long term is all that matters
Repositioning I believe it’s called?
Would you consider taking some profits on the any of the ones that went green then adding to the other bargains right now that are red, such as ENB, IBM, CSCO?
I have thought about buying more enbridge but feel i have too high a position already 14% of portfolio.
It’ll be interesting to see what happens down the road. The global economy is pretty resilient so if anything does happen I feel like it will be temporary and then things will get back on course like it normally does 🙂
For sure mustard, most things are short term. Just got to look long