There seems to be a lot of talk of future volatility of the stock market or a market crash. One explanation for this is that it is October. Most stock market crashes occur in the fall. Logically speaking there should be no seasonality to the market. However, that is not reality.
I will do what I generally do at this time of the year. That is I stop looking at what the TSX is doing. There is no way I am going to sell anything just because there is a potential for a stock market crash. I have been through a number of crashes and the worse that the majority of the companies I own have done is to stop rising their dividend payments.
It is hard to know what will happen. Are we heading into a bear market? We are probably not at this time, but there is a lot to be worried about, like to economies of EU, China and Japan. The US economy has problems also, but they also have a lot of gas coming online and employment seems to be heading in the right direction. For the US, if you include Canada's oil, then it can be -self-sufficient in oil and gas.
Yes, some companies will cut or delete their dividends. But, as I said above the most that the majority will do is not raise their dividend, although some will. Also, usually problems come to dividends two years after a market crash, so you have plenty of time to think about what you want to do with failing stocks.
At some point we will have another bear market and recession. I have been through a number of these and I will just wait them out.
On my other blog I am today writing about Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK) ... continue...
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