TSX and DOW trading near 52 week highs. What's next?
With the TSX and DOW trading at near or above their 52 week highs, I've received a lot of emails asking me where I think the market is going and what should people do with a lot of the profits they've made up so far in the calendar year.
Here's my answer: I don't know. My guess is as good as yours.
For anyone that was brave enough to invest money back in the early part of the year, you will notice that your portfolio is up quite a bit.
My best move was TCK.B when I bought it around $10. There were times when I second guessed my purchase but I'm glad that I held on to it. As it's been up 300% I got out and sold around $30.
My worst performer so far has been MFC. It looked like it was starting to recover nicely until they decided to slash the dividend by half. Whether that is a beneficial thing for the company remains to be seen.
The market seems a bit expensive at the moment so I've been extremely selective (more so than before) about which equities to purchase. Aside from a few growth plays like Apple (AAPL), I'm focusing more on value plays at the moment. There are still a lot of hidden gems out there - specifically a lot of net-nets that have the potential to be home runs.
In the last couple of months, I've been adding Mastech (MHH) and Insmed (INSMD) to my portfolio. I love the idea of buying a company that is trading below net value for two reasons:
1. Margin of safety is higher
2. The chance for a double bagger or triple bagger is higher.
That said, when they reach their target levels, I intend to get out and look for other value plays.
As for now, most of my portfolio is focused on solid dividend plays (big Canadian banks, telecoms) that I intend to keep forever. With bank savings interest rates at about 1% and barely keeping up with inflation, I'll be deploying more money into value and dividend plays. The latter being mainly for long term investing.
Disclaimer: These are strictly my opinions and I encourage you to make your own decisions.
Here's my answer: I don't know. My guess is as good as yours.
For anyone that was brave enough to invest money back in the early part of the year, you will notice that your portfolio is up quite a bit.
My best move was TCK.B when I bought it around $10. There were times when I second guessed my purchase but I'm glad that I held on to it. As it's been up 300% I got out and sold around $30.
My worst performer so far has been MFC. It looked like it was starting to recover nicely until they decided to slash the dividend by half. Whether that is a beneficial thing for the company remains to be seen.
The market seems a bit expensive at the moment so I've been extremely selective (more so than before) about which equities to purchase. Aside from a few growth plays like Apple (AAPL), I'm focusing more on value plays at the moment. There are still a lot of hidden gems out there - specifically a lot of net-nets that have the potential to be home runs.
In the last couple of months, I've been adding Mastech (MHH) and Insmed (INSMD) to my portfolio. I love the idea of buying a company that is trading below net value for two reasons:
1. Margin of safety is higher
2. The chance for a double bagger or triple bagger is higher.
That said, when they reach their target levels, I intend to get out and look for other value plays.
As for now, most of my portfolio is focused on solid dividend plays (big Canadian banks, telecoms) that I intend to keep forever. With bank savings interest rates at about 1% and barely keeping up with inflation, I'll be deploying more money into value and dividend plays. The latter being mainly for long term investing.
Disclaimer: These are strictly my opinions and I encourage you to make your own decisions.
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