Wednesday, October 16, 2013

Was getting out the American market a mistake?

Yesterday the American market climbed almost into triple digit territory. Today the Dow soared past a gain of 200 when last I looked. Investors do not seem concerned with the U.S. missing a debt payment. There seems to be confidence among investors that the debt ceiling will be lifted.

The American political shenanigans have certainly put me off. I have dumped almost all my investments in the Yankee markets. Wise? Maybe not. But my Canadian investments are still growing, I still have lots of dividends streaming in, and I'm sleeping at night.

There are few accepted rules in the investment world but one is to stay invested. Do not try to time the market. But another rule is to invest only in what you understand. Right now, I do not understand the American economy. I feel quite uneasy investing too heavily south of the border.

I am going to keep some of my powder dry, as they say. I'm keeping enough cash on the sidelines for wiggle room if markets fall. Over the coming weeks, if this approach proves a disaster, I'll let you know.

At the very least, when I get back in I'll construct a portfolio delivering increased dividends.

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