Well I am quite refreshed after a week away from the office and the day to day grind. The markets also look quite cleansed after the TSX lost just over 8% of its value since its July high(14,600+ high to Friday's opening of just about 13,300). The S&P 500 also lost over 6% of its value from its July highs.
For the long term investor trying to find some strong companies with depressed stock prices the past week has been a great opportunity and in general it is a good time to have some cash ready to invest in some good deals if they come around. Right now is also a great time to rebalance a portfolio as your asset allocation is likely amiss after the recent volatility.
On the topic of buying low and selling high, my wife and I have sold our home and will be moving. This represents a great move for us personally as we will be moving closer to my work and I will have more time to spend at home. Financially, we will come out smelling like roses with no more mortgage payments and a very large amount of money in the bank from the 'insane' appreciation we have experienced plus a healthy mortgage paydown since we purchased out place 3.5 years ago.
In the effort of being prudent financial managers, we are choosing to not purchase a residence for a time until we find a place that meets our buying criteria.
Mohican's buying criteria:
- 10 minutes or less drive to work
- walking distance to grocery shopping
- monthly mortgage interest + strata + maintenance + property taxes <= equivalent monthly rent
For the long term investor trying to find some strong companies with depressed stock prices the past week has been a great opportunity and in general it is a good time to have some cash ready to invest in some good deals if they come around. Right now is also a great time to rebalance a portfolio as your asset allocation is likely amiss after the recent volatility.
On the topic of buying low and selling high, my wife and I have sold our home and will be moving. This represents a great move for us personally as we will be moving closer to my work and I will have more time to spend at home. Financially, we will come out smelling like roses with no more mortgage payments and a very large amount of money in the bank from the 'insane' appreciation we have experienced plus a healthy mortgage paydown since we purchased out place 3.5 years ago.
In the effort of being prudent financial managers, we are choosing to not purchase a residence for a time until we find a place that meets our buying criteria.
Mohican's buying criteria:
- 10 minutes or less drive to work
- walking distance to grocery shopping
- monthly mortgage interest + strata + maintenance + property taxes <= equivalent monthly rent
We feel very relieved to be free of our mortgage and the risks that go along with homeownership.
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