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Thursday, July 28, 2011

On how the US debt crisis is affecting my investment portfolio

I was sad to learn that Jack Layton has a new cancer. Like if one was not enough. I hope for a quick come back. And just to make things worse, yesterday, the stock market took a deep plunge! My non-registered portfolio closed yesterday session at 109 945$. This amount left me with more than 21k on my margin account. I lost close to 4k in one day of trading, can you believe that... Usually, my portfolio is around 113k and, in very good days, it goes up to 115k. If only the US could deal with their debt problem properly, I wouldn’t be in that shit right now. No taxes for the richest? TAX AND TAX NOW AND IN DEEP!

I mean, Obama is so courageous. We need to respect the man who’s battling with the Republican PIGS. I am for a capitalist system, but it need to done with respect. And not taxing the richest people of the States is kind of evil. It’s the evil side of the capitalist system in the US. We are pigs, we want more, don’t tax us. Paris Hilton and the bunch of other dummies living richly in the States for no reason at all need to pay more taxes. It could be part of the solution, that and cutting unnecessary spending, froze government salaries. For me, the solution is quite easy actually. August 2 is coming and no decision had been taken.

The credibility of the US that is taking a slap. And in result, the Canadian dollars reached 1.06$. Despite it all, I don’t think the Canadian dollars will remain this strong forever. I was very tempted to transfer another 1 000$US in my US broker account but I need to keep the money where it is, in case, you know, of a very in deep correction.

At this time, investors, the good and the bad ones are all in the same boat... Not that I am suffering from this. I am use to the market volatility. It goes up and down most of the time, that’s how it goes. I am doing fine for now, but if no agreement is being vote in the US, well, I could face a margin call. In case of great needs, I have money I can take on my credit cards and 6 000$ available on credit lines... But of course, the interest rate on the credit cards is of 19% or something like it. Susan Brunner suggests to get a credit line, it make a lot of sense. Maybe TD will be kind enough to increase my credit line. I did not take any actions yet, I am just thinking and while facing the devastation, I am not doing much. This is being said, I think that the fact that I am in vacations is not playing in my favor either. That and the devastation.

However, the devastated stock market is not that devastated. Just for me, the Toronto Stock Exchange is up of a couple of points and in result... TADAMMMM... my super super non-registered portfolio is at 110 161.14$. I may go through this, but without any decision being taken on the US debt, my portfolio value could significantly decrease. This is the situation being live by every single retail investors at this time. All in the same boat.

What will make a difference at the end is the reaction of the investors while facing the crisis. Under no circumstances asset should be sell. We saw that in 2008, there’s been a sudden plunge, and then again, the market goes up again. I totally recover from that crash, but it been hard. This time could be worse and I wonder how deep it can go. But today, the stock market gain points just for me :0)


SPBrunner said...

Months to watch out for is October and November. Most times when the market drops, it it these months.

Sunny said...

Thanks Susan.


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