Posted by Tim Stobbs on August 15, 2007
The last few weeks have been a little nerve racking for just about everyone. I don’t think many people like riding roller coasters that the markets have become in the last few days. Up 200 points by noon and closing down another 30 points by the end of the day. Or just up 50 points by 10 am and down 200 points by the end of the day and so on.
If you are sitting on a pile of cash it does present some tempting buying opportunities now and again if you can handle seeing your brand new investments swing around. I’m currently down to a small amount of cash and I’m thinking I’ll sit here waiting for things to calm down a bit before I put in anything else.
This does present a good time for me to start my mortgage acceleration plan. As a 5% after tax rate of return is starting to look fairly good compared to the swing my RRSP accounts have been taking in the last while.
If nothing else I’m curious to see where the markets end up by the end of the year: up, down or just sideways.