Posted by Tim Stobbs on October 7, 2008
Well I’m a bit torn now. We are now seeing a rather dramatic drop in stock prices which is making me think my current plan to just pay down my line of credit for the end of the year might go out the window. While everyone is in complete fear mode the bottom has dropped out on prices and I’m thinking about borrowing some additional funds to invest up to my limit of 10% of my investment net worth.
The current drop is vaguely reminding me of the slump from the peak in 2000 of 11, 389 for the TSX back in 2000 and the drop down to 5, 695 by the end of 2002. Fear and an exploding bubble can do amazing things for those who can pick up on the deals.
I’m also aware that things might be worse before getting better. So do I sit on the side lines or do I just move the money and start putting in a few low limit orders. If I get a huge deal so be it, if not then I accept the fact and hope for further down turns.
Ah, so many choices in life. The good news is regardless if I do spend the borrowed cash I can easily float the interest on the money. Meanwhile fear and greed are hitting each other in my head deciding who is going to win this one.
So is anyone else buying? If so what have you picked up? Or do you think it will all get worse before getting better?