<< How do you feel Canadian stocks will do in the long term? >>
Hi Wendy,
Canada is a resource based economy with the US as its biggest customer and Asia its second largest customer. Much of the balance of our industry / retail business is owned by multinational companies. For these reasons we will probably do worse than the US in any decline.
I invest primarily in mutual funds in Canada and for the Greenline funds which I follow, these are the worst (% of 52 week high)
-43% Precious Metals (Gold, Silver)
-50% Resource (Gold, Silver, Lumber, Oil & Gas)
-65% Energy (Oil & Gas)
The rest of the sectors are down lesser amounts. Depending on the depth of the bear market, they may decline by at least similar amounts.
I think when you are unsure, you raise some cash on a bounce and then slowly put it into sectors that are already down substantially.
Or you could always try my acid test ... Flip a coin, heads for hold, tails for sell. If you are happy with the result, follow it ... If you get a bad feeling in your gut, do the opposite. < g >
In the end, it's your call though.
BWDIK.
John
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