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September’s Slide:

Volatility…
Carnage…
Mayhem…
Fear…

Many investors are no doubt licking their wounds as they’ve witnessed the financial and commodity heavy TSX Composite Index fall nearly 11.5% so far in the month of September. That’s a total of over 1570 points in just seven trading sessions and over 3000 points since the index’s all time high reached in June.

Does anyone smell opportunity?

For a patient investor with time on their side the conditions of this current market present an excellent long-term opening to take advantage of valuations of high quality equities you may not see for years to come. I’m not an investor who subscribes to the doom & gloom pessimism found in the media. While some perceive the current economic troubles as signalling a decade long recession or systemic failure of institutions or economies I continue to look for opportunities that make sense on solid qualitative fundamentals, strong balance sheets, resilient earnings and lucrative dividends.

There’s enough quality in the market with stocks demonstrating impressive strength to make me believe that this period of volatility, losses and fear is simply another opportunity for the long-term investor to take advantage of reasonably valued equities. I don’t suggest a young investor run blindly into the market throwing money at whatever drops 20%, but being rational and objective at this time has the potential to yield very rewarding results to those with the fortitude to enter positions periodically over the next few weeks & months.

I’ve been buying equities in spurts over the past twelve months knowing that periodic highs and lows will present opportunities. I’m adding to positions I feel offer long-term value in my RSP, Dividend Growth and Value Portfolios. Although I’ve taken hits and made some gains; the overall theme of quality has been the mainstay of my activities.

For DivG:
Today with this in mind I initiated another position in Russel Metals (RUS) and recently over the last two weeks have been purchasing more shares in Rogers Communications (RCI.B), Fortis (FTS) and TD Bank (TD).
Currently I am watching closely Atco (ACO.X), Enbridge (ENB) & Husky Energy (HSE).

For RSP:
Currently I am watching closely Exelon (EXC), Coca-Cola (KO) & United Tech (UTX).

These are the times when rational investors take stock in the moment and ask themselves if valuations seem senseless and fundamentals remain. Stick with quality and you can’t go wrong.”- Charles.

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