Buy now or wait for lower prices?
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Thread: Buy now or wait for lower prices?

  1. #1
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    Buy now or wait for lower prices?

    I sold all my RRSP mutual funds a couple of weeks ago and began my research on how to invest wisely. It has been an exciting learning process but the more I read the more I realize that I've got a long way to go before I can begin to understand many of the investing ideas and research methods.

    I am starting to feel the effects of information overload. I am currently holding money in cash and know I do not possess the knowledge to proceed with any but a simple approach as per couch potato portfolio, which I hear is a fine.

    I have decided on a 60/40 split that includes 5 or 6 ETF's but before I jump in I would like your advice:

    Given its recent downward trend would you buy now or wait to see what happens with the Canadian market?

    Would you wait to for the reaction of the US markets to the upcoming stimulus package (I assume the US will print more money)?


  2. #2
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    doitnow!

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    Senior Member KaeJS's Avatar
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    Quote Originally Posted by Soils4Peace View Post
    doitnow!
    lol. that was clever.

    I would do some of it now -- but just wait for the rest.

    You dont want to lump some all of your money, then have the US post bad news and have investor confidence get slammed into the ground. That would be BAD.

    Half now, Half later.

    Or do it in thirds. put 33% now, if markets start to go up, do another 33% quickly. Then wait on US data.

    If you do 33% now and markets keep sliding, do not contribute anymore until they stop, or until US posts good data.

    Also, how old are you?
    If you are on the younger scale, then it shouldnt matter too much when you get in.

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    Quote Originally Posted by KaeJS View Post
    lol. that was clever.

    I would do some of it now -- but just wait for the rest.

    You dont want to lump some all of your money, then have the US post bad news and have investor confidence get slammed into the ground. That would be BAD.

    Half now, Half later.

    Or do it in thirds. put 33% now, if markets start to go up, do another 33% quickly. Then wait on US data.

    If you do 33% now and markets keep sliding, do not contribute anymore until they stop, or until US posts good data.



    Also, how old are you?
    If you are on the younger scale, then it shouldnt matter too much when you get in.
    57. What do you think of XIC for Canadian portion? divided in half or third's?

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    Quote Originally Posted by Soils4Peace View Post
    doitnow!

  6. #6
    Senior Member KaeJS's Avatar
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    Quote Originally Posted by doitnow! View Post
    57. What do you think of XIC for Canadian portion? divided in half or third's?
    Because it is on a dip right now and around 20.5/share, I would say throw half.

    Just keep in mind that we are not the US, but the US does have a negative impact on our markets when they post bad news.

    I think throwing 50% of it would be okay, and that's what I would do. But I would be very careful where you throw the next 50%. I wouldn't want to invest the other 50% until the US posts that data in July.

    Also, XIC should be paying a dividend relatively soon. (about a month) so you might want to get in before then...

    EDIT:

    Sorry, and regarding "what do i think about XIC for canadian portion"

    Well, I agree with it. But I would probably personally choose XIU. I like it a little better, and the price is a little cheaper. Mind you, the dividend is slightly smaller. XIU and XIC are basically the same though. If you look at 10year charts comparing both, they look almost identical. My only reasoning for choosing XIU over XIC is that I've owned and watched XIU. I know it can easily get back over $20. However, like I said, both XIU and XIC are fairly identical. They both hold the same types of companies (cdn banks, suncor, potash) but XIU has a slightly heavier weighting on cdn banks. I think XIU has a 6ish% weighting on RY and TD, where XIC has about 5% weighting. But, basically the same deal....
    Last edited by KaeJS; 2011-06-14 at 11:45 PM.

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    Agree with KaeJS, if you are bullish on Canadian banks -> go for XIU, if you already have big % of Can banks as individual stocks -> go for XIC.
    IMO both are very cheap now

  8. #8
    Senior Member chaudi's Avatar
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    I don't know how you can be so confident about a stock that has double in just two years?
    Retire on $20 a day Goa Huts

  9. #9
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    Quote Originally Posted by chaudi View Post
    I don't know how you can be so confident about a stock that has double in just two years?
    and in 3 years?

  10. #10
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    Quote Originally Posted by chaudi View Post
    I don't know how you can be so confident about a stock that has double in just two years?
    Who is confident and which stock?


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