Thursday, November 15, 2012

Don't Panic

If you read my piece in The Globe and Mail, you know that one of the best bits of advice I've come across for stock market investors was on the cover of The Hitchhiker's Guide to the Galaxy: "Don't Panic."

Since the American presidential election, the Canadian market has been in a real tailspin. One more day like the last few and all my profits for the year will be wiped away.

At the close of trading today, my portfolio value was less than it was at the beginning of the year. This does not mean my investments are in the red, not if you take into account that I have removed more than $30,000 this year in order to live. Some years retirement is not as cheap as others. This year was a budget killer.

From New York Times, 9:53 p.m.
What does tomorrow hold? Hard to say, but if the markets in Asia are any indication, and sometimes they are, I may keep my head above water. I may even see my bottom line climb above my January opening value. The Nikkei is up 1.88% and the Hang Seng is up a tad, 0.18%. China is down and by almost one percent. I'll keep my fingers crossed, stay cool, and I won't panic.

By the way, my investment in Labarador Iron Mines (LIM) is testing my resolve. I noticed today it was trading around 66-cents. I don't have a lot of exposure, it is not a big deal, but still it's leaving a big, red stain on my balance sheet. Penn West (PWT) is not causing me as much grief but it is a close second. Time to let those two sink or swim on their own. I'm turning my investment interest to my more solid performers. Maybe I pick up a few shares of something good at a bargain price when this retreat ends.

I'll keep you posted.

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