Get Out Of The Rain!

Jan 27th, 2009 – Comment

In my experience if you are uncertain as to how to proceed stop and look for signs as to where you are and which way you are headed.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Shelter From The Storm

Nigel from Mississauga, ON, writes about his LIRA taking a licking:

I am presently on my second career and have my first pension in a LIRA (Locked-in Retirement Account).  I have about 15 more years to work if all goes well.  Like others my LIRA has declined 40% in the last year.  It is invested at 70%-Canadian equity,16% US equity, and 14%-global equity.

Am I better to let it ride for the time being or make a move to attempt to stem the flow, if so what would you suggest based on the new regime in the US.  There is talk of huge investment into infrastructure perhaps this is an avenue to explore??

HAS TO HOLD THESE LEVELS

The TSX Composite must hold these levels

Hi Nigel,

In my experience if you are uncertain as to how to proceed stop and look for signs as to where you are and which way you are headed. You clearly are uncomfortable and that is when I advise as I have many times to go to cash. Yes you will pay commissions to get out but that’s the end of the that sinking feeling in the pit of your stomach.

The chart shows the TSX Composite building support in the 8,400 level. There is resistance at 10,000 if it breaks through this resistance it runs to 12,000 without much to stop it.

The MACD is signaling an upturn but thats not a guarantee.

Breaking Above Resistance

Breaking Above Resistance

As far as infrastructure I`ll use SNC Lavalin as a proxy.  It looks like the stock has bottomed and is moving through resistance at the 200 day moving average. From a strategic position yes infrastructure looks to be a good place for capital not just in Canada but globally.

Make sure to watch the charts of your funds or stocks every day to confirm that you want to continue to own them. If you ignore your money it will go away.

Happy Capitalism!

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