Category Archives: Market Outlook

Market Correction: There’s Still Time to Buy Stocks on the Cheap…Probably

Some experienced investors are already seeing buying opportunities in the stock market that has turned bear in the U.S., signified by a decline of more than 20% from a peak.

“Billionaire Ron Baron sees recent selloff as ‘huge monstrous’ buying opportunity!” This Seeking Alpha news headline surely caught my attention.

sale tags

The Canadian stock market is only down about 12% from a peak. Therefore, it’s not considered a bear market for Canadian investors yet. Energy and commodity stocks have held up well and the big Canadian bank stocks are not super bargains yet, though, CIBC (TSX:CM)(NYSE:CM) is trading at a discount of almost 20% and offers a decently attractive yield of close to 5.2%.

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Passive Income Investors: How’s Your “Bear” Market?

Passive income investors, are you feeling under the weather lately because of the market downturn? You’re not the only one. Be careful of your investment portfolio management, though, because investors tend to buy and sell at the wrong time.

Thankfully, passive income investors have it easier because they only have to make buy decisions. If they buy at the wrong time (i.e., buy at too high a valuation), time can help them correct their little blip if they chose to invest in the right companies.

Instead of volatile stock prices, they can focus on the passive income generation, the valuation of the stocks they’re buying, and the dividend stocks to buy.

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It’s Still a Good Time to Buy These 2 Dividend Stocks

grow a money tree

A couple of weeks ago, I wrote that “as the U.S. dollar has weakened against the Canadian dollar, it could be an opportune time for Canadians to buy U.S. stocks and for Americans to stick with U.S. stocks instead of buying Canadian stocks.”

Since then, as shown in the chart below, the USD has recovered slightly.

Notably, the USD is still a way off from its five-year midpoint of approximately C$1.30. Moreover, the WTI oil price is at a high point of +US$71 per barrel, which could weaken from there. Therefore, Canadian and U.S. investors alike are probably better off continuing to invest new money in U.S. stocks trading at good valuations. 

Much like two weeks ago, I still find value in Bristol-Myers Squibb (NYSE:BMY). Merck (NYSE:MRK) that’s in the same space is also similarly undervalued. The dividend stocks offer decent yields of about 3%.

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