Out of the Market Almost A Year
I pulled all my market investments last October/November with a plan that I would re-evaluate the market in a year. It is getting close to that year.
Right off the bat I am not even close to ready to re-enter the market at all... I don't have time to watch my investments and althought things have gotten bad, I still think there is worse to come. Huge losses have to be taken for this to fix itself.
Right from the beginning I've stated my reluctance is that I don't feel that I can predict how things are going to unwind and what will be in the tsunami's path. I expected pension to be hit, the wealthy to have no place to hide, tax increases and interest rate increases. I didn't see something like Paulson's blank cheque request.
Canada is about 1-2 years behind the US in terms of seeing what declining home values do to our mortgages. Our lending standards adhered a bit more to a standard of ability to pay back the loan.
Canada has $121 billion pension fund invested in markets. People who've been reading my blog know that I am very upset at the stupidity of chasing bubbles rather then paying down debt. I still haven't seen any news on what kind of hit Canadians have taken. So... I am tending towards watching for a while longer...