RE:RE:Opportunistic, not optimisticExactly Experienced, venture (vulture index) stocks will be hit the hardest. In other words juniors or exploration junior minors will take a dive. Looking at Uranium for example right now one has to wonder besides Cameco who will retain their share price value? So that brings us to Canadian Energy. Will it be Suncor that retains their share price value along with the the large players like Imperial Oil, Cenovus, Canadian Natural Resources, Tourmaline, Vermilion? Personally if history repeats itself then the answer is no. In 2007-2008 they all took a massive dive. Suncor went from $70.34 May 23 in 2008, and then tanked to $25 Cdn in November 2008. So, look at the timeline between May and November. 7 months is all it took to dump it to 1/3 of it's ATH value in 2008.
So, my personal two cents right now is that the FEDS (Federal Treasury - Powell) has already thrown us a VERY LARGE CLUE that rates will continute to rise thus in affect moving big money away from the stock markets. Let's face it, those that originally entered the stock market only did so due to the low paying yields that the bond markets were paying out. Now that it's looking more "ATTRACTIVE" to those that liked "FIXED INCOMES" investors will then they move back to it. THUS exiting riskier plays like stocks, and the more riskier the more the stock will take a dive.
Suncor is not risky, nor or others, but they will suffer the blow due to lack of investments into the Stock Market. Do what you shall do with the information provided by Obscure and Experienced, these guys know the game, and my hats off to both these professionals. They are 100% more professional than I have ever been in my life, but I am jagged and brazed. Reaons are personal for my character, I stated this Monday would send a signal, personally it should be a positive signal for Energy Stocks now that we know that 3 conditions from the IRAN deal were a "NO Go".
So, the Media will now ride this up with Oil, but for how long before reality of RATE HIKES take the Global Markets down again. On a good note, for this week ride it up.
Spanito
Experienced wrote: Bang on!! Well stated!!!
Especially the part about me being a rare breed. My wife reminds of this fact every single day and at some point everyday calls me "irritating". I don't consider my day complete until she calls me that. A really great day is when she calls me that before we are even out of bed in the morning or she calls me that twice in one day....lol
Seriously though -
Your point 4 is an important one and can't be understated. I have seen so many times over the years people buying shares in a company where the volume of daily trading is very low. When the market starts to move down in times of fear, it can be difficult to buyers for even a few thousand shares without taking a beating.
The clear message is that with the storm clouds on the horizon if you own such companies, now is the time to consider getting out of them. You can either keeping the cash or buy shares in companies where whatever the number of shares you own, they are easily sold when the time comes. I would also extend this thought to share ownership in highly speculative stocks where there might be a great story but no real tangible assets such junior mining and oil and gas companies to name a couple of areas. These types of companies get hit real hard in a market downturn.