Seeing how markets everywhere are more expensive than a senior citizen dating a 20-something, I’ve come to a conclusion. I can’t find anything to buy.
There are certain pockets of value in certain sectors, and with certain companies, but they’re few and far between. I continue to like Rogers Sugar, which I’ve held for years. I bought in almost a decade ago now, at prices about $1 less than today’s, collecting that sweet 10% dividend the whole time (see what I did there?). If I didn’t already own a full position worth, I’d buy more.
It’s the same thing with Reitmans, another stock you guys are probably tired of hearing about. I thought about buying more when it dipped below $6, but I’m pretty happy with my position. I’m happy to hold until it recovers, even if it takes years. And, of course, MRRM.
So what do you do when you can’t find anything to buy? Should I just shut down this blog forever, and take up knitting? Should I rebrand as a Toronto Blue Jays fan site? Should I continue to bring you all my blistering HOT TAKES, all while not wearing pants?
Well, yeah. Obviously. That last one, I mean. Pants are the devil.
Here’s the easy solution. When you can’t find anything to buy, you take a break.
It’s summer, so there are a million things you can do. You can crack out the golf clubs. Or go to a ball game, or just walk down to the local 7-11 for some refreshing iced drinks.
I’m back in my hometown for a couple more weeks before heading off to South Korea. And I’m enjoying the hell out of talking to people I haven’t caught up with in a year. I’ve spent too many hours over the last couple weeks sitting outside, enjoying beverages and conversation, explaining to people that, no, not everyone in South Korea is the Gangnam Style guy. I’m off to visit a friend this weekend to do much of the same.
We allow so much of our lives to be dominated by the market, and investments, and especially finance in general. Especially us finance nerds. Sometimes, it’s good to sit back, relax, and think about things that aren’t money. This doesn’t give any of you permission to undo your hard work, but it’s okay to not think about things for a while.
BUT WAIT. Don’t go until you read my latest stuff from Motley Fool. Don’t worry, it was a little light this week, on account of me spending too much time doing the above things.
Let’s start things off with a really easy way for investors to get a little extra boost from their dividends. That’s all I’m going to say. Look for me to write a little more about this next week.
Are you one of approximately 94% of Canadian investors who insist on owning at least one of the banks? Okay, fine, I forgive you. But if you’re going to own one, make it this bank. In the business, we call that a tease, kids.
If you’re looking for a sector to “hide” while waiting for the market to correct, I think you can do a lot worse than REITs. Here are 3 I think are decent value.
And finally, a little more on why I’d avoid both Westjet and Air Canada at these levels (but especially Air Canada).
And that’s about it. See you guys tomorrow for the dump.