Is this the start of a major correction?  If you are to believe some of the talking heads on TV or some of the newsletters cluttering up the mailbox – it is.  To me IT’S IRRELEVANT.  I just follow the trend as I’ve done for many years and it will tell me what to do.

Right now it’s telling me to do nothing or may be even looking for bargains.  Now, there is a difference between bottom fishing and bargain hunting.  I don’t like bottom fishing because there is too much danger of getting caught in a giant clamshell.  Bargain hunting is OK although sometimes I get fooled there too.  Just because a security is cheap in terms of dollars doesn’t mean it’s a bargain.

Again the indicators I follow almost always tell me what to do.  We had a correction during January/February and I believe it’s yet a bit early for a major one. But I am not fooled into believing it won’t come, because it will.  I just don’t know when.  Meanwhile I keep on the lookout for likely buy or sell candidates.  I mentioned Pfizer (PFE-N) awhile back and it is now even cheaper at US$16.50. PFE is going to lose it’s patent on Lipitor which has many people running for the exits.  But the Co has several other important products in the pipe and pays a nice 4.5% dividend. I also like, and have bought some, Precision Drilling (PD.UN-T) at CAD$7.88 and will buy more if it comes down.  I also still like, and own,  Enerplus Resources (ERF.UN-T at CAD$24.00 and will buy some more of it.  It offers a nice safe path into the depressed natural gas market.  Depressed for now but not for long.

That’s all for now.

CU  TL

But going back to BC was not a fun trip.  High winds in Arizona, snow storms in Nevada and again in BC.  But today it was all worth it as we baked in the early spring sunshine on the lake shore.

Wish the markets were as accommodating.  But what can we expect after a the screaming rally we’ve enjoyed.  So, the market has to take a breather and there are always ample reasons.  Greece, the Iceland volcano, Goldman Sacks pulling the usual stunts and ripping off investors.  But all that too will pass.  I think.

There are still bright spots on the investment scene.  A few down days will make some good buys even better.  Our purchases of Enerplus Resources (ERF.UN-T) are working out.  It’s gone up and back down to our buy level.  This should be a good opportunity to add to positions.  This Oil/Nat Gas producer still yields a 9% annual dividend paid monthly. It will continue to be volatile for awhile till energy markets stabilize.

Otherwise there is little else of importance to report. Till next time, Have Fun.

TL 

Mainly because I want to limit the number of securities in the portfolio, not because there is anything wrong with Pfizer.  The ENERPLUS went through at CAD$23.62 last Monday.  Since then I’ve covered 1800 miles driving through Arizona, Nevada, Idaho, Oregon and Washington. Now I’m back in British Columbia, where I expect to be for the next 6 months or so.

I should travel more often because every time I do the market takes off on a tear.  All my choices are ahead of the game and remain on target for 20% average annual gains.  Right now both US and Canadian markets have broken out of a tight trading range. It appears as if the narrow band has been broken and new intermediate highs lie just ahead.  However, we must still be on guard against unpleasant surprises as this market may still hand us our heads on a platter.

More later.

TL