Dropping IGM and putting RIT in my sights

Recently, I was eager to increase my holdings of IGM and I did. I more than doubled my holdings. 

Then within just days I sold all my IGM, getting out with all my money but just barely. Why? One, IGM was dropping farther and faster than I ever imagined it would. And two, while it was wilting, another and more attractive investment was on the horizon: RIT.

RIT is an ETF which gives one a managed mix of mostly Canadian REITs with about ten percent exposure to the U.S. REIT market. It just seemed like a wiser place to park my money. One cannot get locked in too tightly to one's plans. Stay alert.

I bought RIT after its price had corrected. I kept some powder dry to buy more should it enter bear market territory. As it is, I have a dividend income of 4.5% on this buy. I'm happy no matter what happens to the price in the coming days.

IGM is still a favoured Morningstar investment for Canadians seeking income and it is still featured in the Morningstar Canadian Core Portfolio. For this reason, IGM is still on my radar but it will have to get deep into bear market territory before I bite. IGM is now down almost 30% from its high of the past year.

The financial markets are in quite the turmoil today. These types of markets usually are around for days and weeks, sometimes even months. In today's financial climate, IGM could fall a lot further.