As the equity and bond markets enter the current major secular bear market, a number of the high flying sectors are now rolling over to the downside to joint those sectors that have already crashed.
Keep your powder dry for much better buying opportunities. However now is a good time to plan your shopping list and select the stocks and price targets so that when their prices get there, one has the presence and confidence to buy. Personally I'm interested in dividend paying stocks. So am selecting companies that have long term growth in both earnings and dividends. And some are just stable boring companies that do not have much growth potential but when dividend yields approach 10% offer excellent buys to hold for dividend income. Also looking at convertible debenture issues trading below par for my RRSP accounts that will provide excellent interest yields as well as capital gain as they return toward par at their maturity date.
The following chart from Danielle Park's Juggling Dynamite web site.
Click to enlarge.
