Lately, under the belief that the market is well off it highs, I have been a buyer. It has not been working out well for me. Each of my picks has declined in value and my losses are mounting. Right now the TSX is at 19,868.79. My gut tells me this is a fair drop but when I check the posted high of the past year, 20,843.21, I find the TSX is only off its high of the past year by about 4.7%. Clearly, the TSX today has a lot of room to drop.
The present market enters bear territory when it drops to 16,674.57 for a loss of 20%. A correction begins when the market drops 10% or drops to 18,758.89.
Why did my gut tell me the market was nearing correction territory? Well, the market peaked less that a year and a half ago at 22,087.20, on March 29, 2022, to be exact. Today the market is down about 10% from that historic high but that is not the high used to calculate the present market loss.
I can live on my dividend income. I think I will try and resist the urge to buy more. I am going to try and hold out for some real bargains. If the bargains never materialize, no problem. TDB8150 is paying 4.55% interest on cash deposits.
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