Sell! Sell! Sell?
I didn't want to look, but news report after news report talked about the decline in the Shanghai composite index having an effect worldwide.
This caused markets all over the world to drop in price.
Toronto's TSX dropped something like 400 points and ended up at around 13,000. The Dow Jones in New York dropped over 500 points.
Obviously, now is the time to sell. Get out while the markets are dropping. Save your capital for when times are better.
Wait a minute. Sure the market value of wifey and my portfolio is down $5,000 since Thursday, but the number of units of each ETF and mutual fund remain the same.
That 1 unit of VCN.TO is still 1 unit. Sure it's worth $26 instead of $30, but it's still 1 unit. That 1 unit represents shares in all the companies listed on the TSX. Despite the decline in share prices, companies are still going to make money. Maybe not as much money as forecasted, but they will try to be in the black.
So why are people lamented the loss of $600, $200, or even $100. $100? Are you kidding? If you can't tolerate a $100 loss maybe you need to reevaluate your risk tolerance.
As the markets decline, that's the best time to buy more units!
I wish I had more cash on hand so I could get more units of VCN.TO, VUN.TO, and XEF.TO. No need to buy VAB.TO as now it's higher than my targeted allocation. As it's still within 5% of my allocation, there's no need to sell any VAB.TO for now.
For now, I'll just stick to my schedule of purchasing more ETFs and mutual funds. A schedule that happens to coincide with payday.
Unfortunately for us, it appears markets are already recovering. As I write this, the markets are back on the rise.
|From Google Finance