Friday, November 21, 2008

Canadian Banks Getting Hammered in the Bear, Nov. 21, 2008

The Canadian Financial sector is taking a big hit during this Bear Market and it doesn't look like it is over. So far the TSX Financial Index has corrected back about the last 5 years of increases. A dividend mutual fund, one that includes Canadian Banks has only lost about 4 years of gains. Perhaps the dividends are helping to keep the value higher than the index. Definitely on sale today but my analysis suggests prices will continue lower, at least in the short term. I'm not buying any yet.


Ryan said...

Thanks for keeping your blog updated. I just wish I could have read about it sooner. My entire portfolio is massively down. Do you think it's still wise to start buying now?

CM said...


Its nice to hear from a reader.

With my HXD shares I am in a "paper profit" situation.

I won't advise you to buy HXD since it is a personal situation decision.

Recogize that HXD is volatile these days due to the x2 leverage and recent fast daily market moves. Its a little like dealing with a volatile penny stock. One needs to be able to live with a wide flucuating price.

I still think the markets have a higher probability of more downside, at least in the short term, before we see the next relatively large rally, so I continue to hold onto my HXD and HSD (US) units.

These things are never guaranteed so I am prepared to live with being wrong.

Many others continue to guess/hope that a bottom of the Bear has been reached.