Thursday, May 6, 2010

Don’t worry, be happy and go fishing!

So what is one to do now that the world is coming to an end? What about going fishing?

Well, is your portfolio up to date? Did you sell off your investment mistakes and do you only own well run companies that you bought for a good price? Then what else is there left to do than either to panic or to go fishing?

There is only so much under your control. You cannot control the weather. You cannot control the U.S. dollar, interest rates or the Greek debt crisis. You cannot even control the next investor over, your wife and certainly not your kids. So... go fishing. Because selling in a panic is probably the worst you can do.

What about cash? Cash is king. So you can keep on accumulating cash from rent, dividend, and interest. Maybe this is the time to dump that dead beat investment and add the cash to your stash! In the worst case you can claim the capital loss , reduce your taxes and add it to your many ‘learning experiences’.

If it wasn’t for the Greek Crisis of Investor Confidence the stock market would have been up significantly; North American companies are right now reporting increasingly better earnings. Leverage overall is still declining and American savers still are not spending with the unabashed frenzy of the pre-2007 years. I have no clue as to whether this debt crisis is contagious but ‘Que sera, sera’! I am not the Bank of Canada, the Chancellor of Germany or the Premier of the Netherlands. And even if I was, the Greek citizens are not taking this curtailing of bad economic habits gracefully. So... it is out of my control.

Glaring at the computer monitor and fretting about my losses will not help; other than the end of the world, over the long term things will probably work out. In the mean time, I am accumulating cash, sell a couple of losers to add cash to the stash and when the fog of panic clears, I should be able to identify some attractive investment opportunities that will add to my profits overtime. So are you ready to go fishing?

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