It’s been a while since I’ve done a weekly lineup here on the Divided Ninja, but I’m glad to be back!
While it’s been a wonderful hot summer here in Vancouver (until today), markets are also getting overheated! Prices have been steadily increasing to all time highs on U.S. markets. There are recent fears the U.S. government will be soon withdrawing its stimulus program. In addition there is the threat of looming interest rate increases. As well, some stocks have seen sudden and sharp price reversals.
That is one thing I’ve certainly noticed is how volatile stocks have been over the last few months. Take the Canadian Telecoms such as Telus, Rogers, and Bell, which declined sharply in late June with fears of Verizon’s entrance into the Canadian market. Telus was down over 11% on Tuesday, June 25th. Then recently, Potash Corp. declined some 16% on July 29th, with prices levelling after a perceived pricing manipulation among global potash producers.
When solid blue-chip companies that are otherwise stable, profitable, and have low debt levels get taken for a sudden dive, I’m always interested. When companies like these become heavily discounted, I’m always interested in buying on the dips. I did that with Telus on June 27th, and would have done so recently with Potash Corp. if I had cash available.
So what’s going on? Why is the news enough to send the share price of a high quality company down over 10% or even 20% in only one day? Why does the market suddenly seem more volatile this summer? Why is Sell in May and Go Away a bust for 2013?
My Advice – Don’t sell or try to second guess the market. Stay the course, and top up high quality companies on the dips. Collect your dividends and ride out the summer volatility. 😉
The Weekly Lineup
Here are some great reads from around the web:
The Passive Income Earner also discussed the recent decline in Potash Corp. in Market News Have You Worried? PIE discusses why he already is a shareholder of Potash Corp., why he isn’t selling and most importantly why he isn’t worried. The lesson here is all about leaving your emotions at the door and sticking with the plan! Haven’t I said that before?
Here is an article from the Financial Post laying out the basics of Harper’s plan to let international Telecom giants into the Canadian arena. While the big three Canadian Telecoms will obviously fight this hand over fist, and it’s a concern for shareholders, it’s a great move for consumers. Canadians are paying some of the highest cell phone fees in the world!
Dan Mac continues his monthly wrap up of Notable Dividend Increases: July 2013. These dividend increases are the engine that helps drive portfolio growth, and literally guarantees you will keep pace with inflation. How many investments increase your annual rate of return year after year?
Dividend Mantra was recently interviewed by Tom Roberts at the Dividend Yield – Stock Capital Investment blog. Be sure to check out the Mantra’s wisdom at How You Can Retire at the Age of 40.
I wasn’t aware of Tom’s blog, but it is certainly one I will be subscribing to and keeping an eye on. Be sure to check out Tom’s Best Dividend Stocks page, where you can download detailed info on the Dividend Champions, Dividend Aristocrats, and Dogs of the Dow among others. These downloads are by donation. So please make the effort to support Robert’s work. This is a great resource for dividend investors!
Think coin collecting is for hobbyists who don’t know how to invest? Check out this post on The Top Three Most Valuable Coins. The rarest coins in the world are worth millions!
I’ll be back over the next few weeks with some articles I have been planning while away from the Ninja. I’ll be discussing my recent (almost recent) buy of Telus and why I think resource stocks are the next discounted investment opportunity.
Have a nice weekend everyone! 🙂
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