This blog has repeatedly urged caution since mid April. In addition, recommended recent strategies include selling on strong days (e.g. August 3rd AM), purchasing high paying dividend stocks to bolster returns, and considering high yielding Preferred Shares (e.g. Bombardier, Brookfield Properties, Canada Western Bank, & insurance companies).
Furthermore, this blog has recommended precious metal companies (Agnico Eagle, Eldorado, Iamgold, & Silver Wheaton), telecom (BCE & Telus) and highlighted the strength in agricultural plays (Agrium & Potash) prior to the recent run-up.
I still recommend extreme caution and to remain mostly out of equities for now even though certain opportunities have become apparent. According to market guru Jim Cramer of CNBC on Monday, he hasn’t seen the market look so troubling in years owing to small retail investors having fled the market.
Market Opportunities worth watching: Stocks hitting 52 week lows yesterday include: Encana (ECA), Husky (HSE), Manulife (MFC), Nexen (NXY), RIM, Royal Bank (RY), & Sunlife (SLF). Encana and Royal in particular look interesting at these levels. Other stocks nearing 52 week lows or displaying weakness include Canadian Natural Resources (CNQ), Canadian Oil Sands Trust (COS.UN), & Power Financial (PWF). In the precious metals sector, Kinross (K) has been particularly weak and should be watched for opportunities. Overall recommendation is to sit tight and wait for further market meltdown.
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