Since first implementing my DOGS strategy in 2002, I can honestly say that this has been the toughest time that I’ve had in the markets. Back then, I was trying to recover from a foreign ownership problem that had developed in my RRSP when Newmont Mining – a US company – bought Franco-Nevada. I ended up off-side with my foreign-content restriction and sold the entire holding. Back then I was trying to balance across 5 Canadian stocks selected on the basis of yield alone. I had experienced the tech boom’n’bust, and, big deal, I wasn’t buying tech again. Kinda easy, right?
Fast-forward a decade, and I look back on various contagions, the Canadian ABCP bust and the US financial crisis. Enough near-death experiences to scare anybody away from the market, and yet I’ve undertaken the task of finding suitable homes for the proceeds from the sale of my house. The task is largely no different than it was back then, but the scale is larger by an order of magnitude, and the US Fed has desensitised us to the term “Trillion”.
The fact of the matter is that I can’t stay in cash, and I have about 6 to 8 years to make my plan work, so at the risk of mixing up these sports metaphors (can poker be called a sport 😉 ), it was time to shoot the puck. Yes, the market has been on a tear and I should have (could have) waited for further reductions in market values, but at the end of the day, my selections met most of my Rules, and came down to 1 month lows.
Based on said Rules, having “Shot the Puck” (can’t score if you don’t shoot the puck, eh), I am now “All In“:
BCE Bank of Montreal CIBC Potash Corporation Shaw Communications
Coca Cola Chevron HCP McDonald's Walgreens
Keep an eye on this blog for updates, and thanks for reading.