Tuesday, April 17, 2007

OK - I Admit It!

I like checking on how my investments are doing on a daily basis. This is not something new that happened to me because I am in early retirement, I did the same thing every day at work. I spent most days chained to my desk and when the PCs and the Internet were invented I make good use of them.

I am sure that I am not the only Canadian who likes to watch their investments grow. Why do we do it...is it just the gambling gene that all seem to be born with or is it something more noble like being a responsible investor? Is it just a bad habit?

For example, I put a couple of thousand dollars into the TD Canadian Index -e fund starting back in March and it has now increased by $41 to $2,041. That is a 2 percent increase in about one months time. Not a lot these days for the market, but a lot compared to say a GIC or CSB that might be paying 3.5 percent per year.

Intellectually I "know" that I can't count on continued growth forever. I am well aware of the dips and know that it is just a matter of time before the Canadian Stock market will change to a period of sideways or downward movement for a period of perhaps several years. The most recent episode, that many would define as a bear market period, started back near the year 2000. It took about 5 years for the S&P TSX Composite Index to recover back to the year 2000 level.

When the next big bear market period happens my habit of checking every morning will work against me.

On the other hand, I am also certain that the index will come back and make new highs eventually. All I need to do is be patient and keep reminding myself of this fact. And if I can find some extra cash...buy more with both hands!

1 comment:

Mike said...

I find it a lot more fun to check everyday when the market is going up.