Canadian Personal Finance Blog

That was an interesting expression I heard a financial pundit make once, about a short lived rebound in the markets, during a severe down turn, and it is very true, was yesterday a recovery? I have no idea, will it continue? Ask me tomorrow. As the Canadian Capitalist said in a very eloquent statement (which I will shamelessly steal):

If you panicked during yesterday’s sell-off, you should take a hard look at your asset allocation and see if you are taking on more risk than you can stomach. There is nothing worse than selling in a panic and locking in your losses.

Very true words, and much better than, “With great power comes great responsibility”.

Personal Experience

During Monday’s panic, I actually went out and bought more banks. I can’t tell you that it was an epiphany, or some other thing, but I decided I was going to get a Dividend paying asset “on sale”, so I went out and bought it. Was it the right move? Again, ask me in about 6 months and I’ll tell you then.

Small c conservative

Many folks have assumed I am a Big “C” conservative (and a member of the party), I am actually a small “c’ conservative and vote as my conscience suggests at each election. I am conservative in investing only because I have been burned so many times being way too excited about possible profits.

Make an Investment Plan

If anything has been learned, you must have a financial plan, and a plan on how you want to deal with your investments, so you aren’t part of the panicking masses during these market downturns. Do what you think is comfortable for you.

Let me repeat one point that I have read in Michael James’ blog and in others, that I repeated yesterday as my own strategy as well. If you have short term money that I need to live on or pay off debts, it should not be in equities, because I need that money not to shrink or disappear. If this is conservative, then I am conservative. All my equity investments are in funds I will need in 5 years or more.

Interest Rates Lower

I understand that this is needed to save some folks in peril in the states, but I really don’t understand a 3/4 point slash by the U.S. Federal Reserve. Hope they know what they are doing, because it seems a little extreme to me.

Give Blood

I am giving blood for the 11th time (I hope), I challenge my readers and fellow financial bloggers to do the same. No you don’t get a tax write off, but you do help save lives.

After the elation of the budget we now come to the Consumer Price Index for February, and to quote Frank Barrone, Oh Crap!Yup the CPI elevator is going up again. It is now up to 2.0% year over year up from 1.2% last month (year over year) . That is one hell of a jump, and guess what is to blame? Gasoline, my friends, yes indeed, the black gold that is causing the Canadian Economy to go into hyper drive is also driving up the consumer price index.

Surprisingly the CPI in Ontario is only 1.6% which is interesting, given our gas prices shot through the roof (up 9.8% from January to February) thanks to the “shortages” caused by that refinery fire (I note gas prices are still around $1/liter these days). A good wood worker uses a gouge, but I didn’t know it was part of standard business practices too.

Why should you care, no it’s not inflationary, yet, but if that comes, then interest rates go UP, and then we see if the U.S. economy can withstand a high interest rate or not. My guess is NO, and the rest of the world is going to pay for that one too.

Oh and on a different note, remember to Give Blood the next time you can. I am supposed to give today, and this will make my 8th donation (which isn’t much considering the last time I gave there was a chap there who had given almost 100 times). This is a gift that helps people you don’t even know, and you are helping them LIVE, so it is an amazing gift, give, if you can.

So I have just finished giving blood for the 7th time (not much, but it’s a start). I give because I have it, and it’s a minor inconvenience in my day (and I get to eat as many powdered donuts as I can snarf back, with very little guilt). I have used blood products, my family has, as have friends, I think it’s important to pay back.

If you are in Canada, contact the Canadian Blood Services or click on this link to find a clinic near you, if you are in the States, I think you still go through the Red Cross. If you can’t give blood, or don’t want to, donate some money then, or better still volunteer to help out. I never grew up to be a doctor, like I thought I should (sometimes), but at least I am helping someone now.

I challenge bloggers (expect a tag from me soon), to give! –C8j