Piggy Bank

Still Buying Stocks, Even Though I Shouldn’t

Byadmin

This could be the buying opportunity of the decade. Or the start of a long, painful ride.

I’m sitting on cash right now (about 75% of my investable assets) while looking for good companies to buy in the market.

Today, the S&P 500 is finally down 20% off its all-time highs. The Nasdaq 100 is 30% off its all-time highs.

So this seems like the time to buy.

“It can’t go lower from here.”

– Famous last words

Warren Buffett and Berkshire Hathaway have finally started deploying their cash. Another $6 billion buying Occidental Petroleum this month. He loves the stock. Some see his recent spending spree as being positive news for the market. Of course, those shares continue to fall, and so far, Sir Warren has not caught the bottom yet.

The time to buy is when there is blood in the streets, especially if that blood is your own.

– Nathan Rothschild

I thought about buying some stuff today. Deploying another 1%-5% of my cash to get me closer to my fully-invested goal. But as of now, I have not.

Market timing is a mug’s game.

But the deals are too tempting. I bought a little stock called IGM Financial today with a 6% yield. If I can hold this for several years, this will be a nice bit of recurring income.

I want to buy more Manulife Financial, but I feel it’s already overweighted in my portfolio. Maybe I should double-up on Greatwest Life?

Do you see?!? It’s too easy to look around and see little 6% dividend payers and want to pick them up for when the market returns. The market keeps falling, though, and the unrealized capital losses are painful to look at. My portfolio might be all red by the end of June.

OK, I’ve somehow convinced myself to buy more of my existing holdings by writing this post. As I was writing this, I picked up some:

  • Greatwest Life – GWO
  • NIO
  • Pizza Pizza – PZA
  • Vanguard Total Stock Index – VTI
  • Enbridge – ENB
  • Pembina Pipeline – PPL

That was a sudden turn of events. I was planning on not buying anything for a month.

I just reduced my cash stockpile by another 2%. It’s silly how easy it is to spend this kind of money.

Similar Posts