March 6, 2009, 6:37 am

Buying Stocks When There Is Blood in The Streets

by: The Financial Blogger    Category: Investment, Market and Risk,Trading
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I was watching Batman, The Dark Knight yesterday and a quote from Harvey Dent caught my attention:

“The night is darker right before dawn”.

Batman definitely knows something about money (if you doubt it, read my post about the Dark Knight Money approach 😉 ). We have the feeling that the stock market goes worst from one day to another. However, as Mr. Rothschild used to say: “you should buy stocks when there is blood on the street”. People didn’t start jumping off the windows on Wall Street, but I bet you they are thinking about it 😉

I just finished the 2008 RRSP campaign and I was happy to discover that several clients understand that it is the right time to buy. They know they are buying cheap stocks of great companies.

I’m coming back with my intuition about Canadian banks being a good investment. We saw interesting and positives results from most banks. In the end, when National bank was at $25 during December, it was a hell of a great deal considering it jumped to $37 a few days ago. Actually, most Canadian bank stocks did the same kind of jump 😉

Some people discuss their long term capacity of maintaining such high dividend. At a 7% dividend yield, it becomes very interesting!

Besides the Canadian banks, I still believe in the market. We might have a rough 2009 (the first two months are not that bright after all!) but the market will come back as it always did… The end of the world was announced several time by financial analysts and medias… They were wrong every time (it’s like the guy from the weather channel, why do we keep listening to a guy that is wrong 40% of the time?!?).

This is why I decided to invest most of my Smith Manoeuvre money into index funds. I don’t want to miss the train and while I will not be bragging about my returns for 2008 (and maybe 2009), I’ll certainly do it in 2010 😉

So remember Harvey Dent or Mr. Rothschild and continue to believe in the stock market and investment strategy. After all, as Scarface says:

“Every day above the ground is a good day”.

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hehe I have another one:

Don’t wait until the stars and planets and comets and asteroids all align to invest!!!

haha, good one Sophie, I would imagine that would not happen very often an you would end up not trading at all?

and another one: Warren Buffet: “Be fearful when others are greedy and greedy when others are fearful”