Staying Invested for October, 2023

 

Stay invested and one can't time the Markets sticks in my mind looking at the short term market swings but with long term goals and compounding dividends.

However, with the constant media noise about inflation and interest rates depressing many an equity stock and those that pay dividends ... I feel it's a good time to Buy while stock prices are down on those I'm interested in when other investors are selling ... moving cash over to so called "safe havens". GIC's, high interest savings accounts and gold.

Nothing new there with the up and down cycles of the Markets in the past ... the fear and greed thing driving many an investor.

It looks like possible further hikes have gone more to central banker talk about how long will we keep interest rates at this high level? Be a lot of media discussion about that going forward I'm sure.

Besides investor concerns when companies take on more debt at higher interest rates, costing more money to operate and Banks dealing with bad loans/mortgages that will probably increase heading into 2024, central bankers and interest rates are the biggest downers for now and weigh on the Markets in my opinion.

It's the middle of October and with the top five banks ... Royal Bank (RY-T) and Bank of Montreal (BMO-T) have ex-dividend dates on the 26th and 27th for this month with current dividend yields of 4.71% for RY and 5.34% for BMO. I figure they are decent buying opportunities while their stock prices are down and flat currently

Those banks and others will be releasing earnings reports in the next few weeks for the past quarter. I don't expect much difference from the last earning reports except probably directing more money to cover possible loan defaults. Better days ahead when central bankers decide to slowly drop rates, which could take awhile unfortunately.

Doing some research and googling, there are several Canadian ETF's that hold all these top banks plus more financials but besides the lure of enticing cash dividends, I wouldn't expect much ETF price appreciation for now but some will increase over time eventually such as BMO's ETF ... ZWB.