DISCLAIMER: This isn’t “advice” or a suggestion. Make your own decisions and do not base what I say to be any sort of guarantee or investment advice. I’m just a random alias on the internet for Pete’s sake.
That being said, I am just highlighting this stock because it has pleasantly surprised me lately and I am thinking about picking up some more shares. I bought shares of BMO on 2/21/2012, so I have had it for over a year now. It’s been fairly up and down until recently. Suddenly, it seemed to bottom out at $57.00 around June 2013 and has been on the move since then. I am up 21% from my original cost and if you look at the last 3 months, it’s going up at a 45 degree angle. I originally bought this stock because:
It pays a great dividend: Right now still 4% but even higher on my cost basis
It's a Canadian stock so I get some good inflation protection from a crashing US dollar
I wanted to own something in the banking sector, but didn't trust any of the US bank stocks
Canadian bank stocks came tumbling down when the US stocks did, but they weren't involved in any of the US problems and have better lending standards then our government
Oh, did I mention that I wanted a great dividend and inflation protection?
Anyway, this looks like a long term investment for me, so I will probably move some more money in.
That being said, we HAVE to be looking at some sort of bear market in the near future. We’ve had a bull market for 5 years straight now, and it seems that something has to give at some point. I’m definitely not bailing out of the market any time soon, but I definitely want to get paid some dividends while it’s moving down…
I am not a trader, but I guess it depends on what graph you look at. Zoom out a few years and you will see that $65 seemed to be a bit of "resistance", with "support" around $55. Now it has broken through that. So, you tell me!!!
“Apathy is the Glove in Which Evil Slips It’s Hand”.
So this is what money sounds like. Skinnee, if I had your money I’d burn mine.
I am holding strong on guns, gold, silver and bullets. They speak a language I can understand.
“Banana Pants”
Indigo Bay 170
90 Johnson
Wilderness Ride 115
Gold has been in a bear market (decline) for some time now. There is no way you could have talked me into buying gold when it's at all time historical highs. That is a recipe for a loss and the people who were buying at 2000 are suffering now at 1200. The name of the game is "buy low, sell high"...
I have guns and bullets too, but they don’t pay dividends.
2007/2008 highs in the mid $60s as well…but even with a good dividend why would you invest in a bank if you are anticipating a correction in the near future?
2007/2008 highs in the mid $60s as well…but even with a good dividend why would you invest in a bank if you are anticipating a correction in the near future?
1) I am not anticipating a correction in "banks". I'm anticipating a correction in the market as a whole. If you can tell me exactly when that correction will be and for how long it will last, then I might change my strategy a bit!!!
2) During a correction, dividend stocks are the safest place to be
3) Your savings is getting "corrected" every day via inflation. If you keep your money in "cash" then you have a negative return.
4) My market timing sucks, so I would rather chase a dividend. I'm not retiring anytime soon, so I don't mind the downward movement as long as I believe it will come back up at some point. At this juncture, I think that the banks have all put proven they will be fine and have Uncle Sam to bail them domestics out any time they are in trouble.
Exactly why you should buy gold/silver now. Not stocks which are at an all-time high.
Esp. a bank stock, I don’t trust the banks to hold my cash let alone be a shareholder.
“Banana Pants”
Indigo Bay 170
90 Johnson
Wilderness Ride 115
1) Yes, that is a good point about stocks being high. I will give you that. This money is traded inside of my 401K though and if I were to pull it out, I would take a 10% penalty + very high taxes. Stocks are my best option inside of that realm.
2) I think Uncle Sam made it pretty clear that Banks are about the safest investment! They will stop at nothing to prop them up even when they should go belly up. Not only that, but the financial sector has a leg up on the "game".
3) Gold is still falling. Falling knife that is...
Gotcha on the 401k plan, my company dwindled our match down to pennies so it wasn’t worth me contributing any longer and keeping my money hostage for years. Stopped contributing and started buying metals years ago. Stopped buying over the past 3 years as it rose to fast and need to make a large deposit sometime soon. If stocks weren’t still so high I would invest some cash, but it scares me still.
Gotcha on the 401k plan, my company dwindled our match down to pennies so it wasn’t worth me contributing any longer and keeping my money hostage for years. Stopped contributing and started buying metals years ago. Stopped buying over the past 3 years as it rose to fast and need to make a large deposit sometime soon. If stocks weren’t still so high I would invest some cash, but it scares me still.
“Banana Pants”
Indigo Bay 170
90 Johnson
Wilderness Ride 115
Yeah, I don't blame you. My 401K is from my former employer, but I was with them for 15 years. I have quite a bit built up in there and it is special because it let's me deal in individual stocks (versus only mutual funds). No new contributions are going in. I only shuffle money around (including dividends which come every month and I save up and re-invest). My 401k stinks with my current employer, so I contribute just enough to get the match.
I am definitely not sending any new funds into the market out of my own pocket or with post-tax dollars.
That being said, 401 is still pre-tax, so it’s still a fair deal to escape a higher tax bracket with those funds when you expect to be in a lower bracket after retirement.
I expect to be in the same or higher tax bracket as I keep working till I die. It’s the “new” American way.
“Banana Pants”
Indigo Bay 170
90 Johnson
Wilderness Ride 115
Oh yeah! Great point! But I plan on wrapping up my life as a Wal-mart greeter, since that will be the only retailer left in 2050. So, hoping my tax responsibilities will be much less. That is until Uncle Sam put's a "rich tax" on people who saved up too much for retirement!!!
I think Uncle Sam made it pretty clear that Banks are about the safest investment! They will stop at nothing to prop them up even when they should go belly up. Not only that, but the financial sector has a leg up on the “game”.
right about this for sure…my only concern would be banks having something to do with the bear market or correction or crash or whatever you wanna call it…but if you are just “investing” then it should be back up to where you bought it in 2-3 years
So this is what money sounds like. Skinnee, if I had your money I’d burn mine.
I am holding strong on guns, gold, silver and bullets. They speak a language I can understand.
“Banana Pants”
Indigo Bay 170
90 Johnson
Wilderness Ride 115
All you mentioned plus add a few more like diamonds and if the powers that be decided to dump the vast stock piles stored World wide all would be worth about as much as a pot of Pinto Beans.
