Only a few days ago when we headed in 2008, I still saw articles here and there predicting a strong equity market this year. Just a few days I wonder if those people change their view.
I already became bearish since November, became more bearish by end of 2007. As you see I'm not perfect. I did not correctly predicted a sub-prime blew up in August, but at least I tried my best conservatively to recoup some of my losses by trading TWM and FXP.
When a recession comes or big fall of market, you will start to see articles about what sectors and what stocks are defensive. Let me tell you (again), due to the current invention of short ETFs, you should not bet on yourself you can find a stock that can go up well in a down market. You should simply hold some cash and make use of the short ETFs.
I am a bit scared by the market these days, swing too much and too fast. Otherwise, I should have got myself some short ETFs and making money to offset some of my loss on the mutual funds and closed-end funds I have. I already have some ideas what to buy and when to buy, just that the market moves so fast that it didn't wait for me......
Anyway, I was wrong on the direction about Canadian financials as well. Nothing falls in a straight line, so at least I believe I stand a chance to recoup some of the loss before I cut loss. I'll see.
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