Market Frenzy

Last Thursday (August 4th) was another black day on the stock market. In fact, it was the worst day on the stock market since 2008. Here's how bad it was: Dow Jones lost 512.76 points (-4.31%) S&P500 lost 60.27 points (-4.78%) Nasdaq lost 136.68 points (-5.08%) TSX lost 435.90 points (-3.40%)   This is the perfect example of a “flash crash”; a stock market crash of 3, 4 even 5% in a single day. This was almost the norm back in 2008 when volatility was at its peak. …

Continue Reading about What You Should Do In A Flash Crash On The Stock Market

After writing 5 reasons to be bullish on the stock market, I think I should play Devil’s advocate and bring 5 reasons to be bearish on the stock market ;-).  I would say that it is probably the thing I hate the most about financial analysts and economists; they often have as many reasons to be bullish as they have to be bearish. In the end, you have to read between the lines to understand what their true feelings are about the economy. Well I’ll tell you upfront: I am bullish for 2011. However, …

Continue Reading about 5 Reasons to Be Bearish on The Market

  By nature, I must say that I am optimistic. Back in the 2008 crisis, I saw tons of buying opportunities. Now that the dust has settled down, I still think that 2011 will be a bullish year. In fact, I think that 2011 will look a lot like 2010; many fluctuations throughout the year with a bullish market at the end of the year. So far, I’ve been right for the first three months ;-). My recent meeting with a portfolio manager reinforced my position. I discussed many topics with him but …

Continue Reading about 5 Reasons to Be Bullish On The Market

I am definitely under the impression that we are right in the middle of the investing opportunity of a decade if not more! I am looking at different dividend stocks and the same observation comes back again and again; is it just me or it is too good to be true? Low P/E Ratio Since the beginning of 2009, the stock market regained signs of life and we can say that we now off of the pacemaker. However, due to the market volatility, the finance problems in European countries and the huge …

Continue Reading about Is it Just Me or it is too Good to Be True?

Everyday millions of investors check their favorite stock market website to see what the stock indexes do. For example, on any given investing site an investor can check how the S&P500, the TSX, the FTSE, or the DJIA averages are faring for the day. I find I have been doing this a lot more than normal lately given the crazy seesaw ride the markets have been providing us. However, as a long-term dividend investor this is not ideal. I find that looking at these numbers every day stirs up …

Continue Reading about A Really Long Term Dow Jones Chart to Put Things in Perspective

Whenever the stock markets go through a very rough period, it is inevitable that there is talk that this time things are different. I remember the tech bubble in the late-90's when the "new economy" was going to change everything and the stock market was now playing with new and different rules. Valuations were irrelevant, as was company revenue and earnings. As long as the company was in the online space it was going to rule the world. Look what happened then! And here we are again with …

Continue Reading about It’s Not Different This Time