In 2007 my clients were coached to move some or most of their money into daily interest accounts. Why? Because I knew markets would decline at least 40% during 2008 and 2009. (It was inevitable considering the sub-prime mortgages and real estate fiasco taking place in USA ) I predicted that the TSX would hit 9,000 or 10,000 in 2008 or 2009 and it could be 2010 or 2011 before it would begin a stable growth period again.
TSX (Toronto Stock Exchange Index) was near 14,500 in 2007 when I suggested a defensive position. The TSX was recently around 9,000. So I believe it’s about 2/3 of the way down now.
Are you protected now?
When markets are down stocks and mutual fund shares are on sale.
The way to make money is to buy low and sell high……not the other way around!
My clients are beginning to or about to begin buying back into the markets slowly over the next twelve to twenty four months. They’ll be likely to hit the lowest prices on shares. The point is to get bought back in before stock markets begin their growth period without losing a large percentage as it continues to drop.
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