October 16, 2013 Comments

Well it appears that the gong show in the U.S. senate and house is about to be resolved positively.

On this news the S&P 500 rose 1.4% on Wednesday and Toronto rose 0.2%.

It’s still possible that the deal could hit a snag yet, but it appears matters are resolved for now. However I understand this thing will resurface by January. Perhaps the market will ignore it even more so the next time. The politicians can only cry Wolf effectively so many times. ‘course we might remember in the Fable the wolf eventually does come around and eat the boy up as his cries are ignored. (But in this case I don’t think the government will ever allow the U.S. to default).

So, if this deal does get done then it will appear that we have done the right thing by staying the course and by picking up some stocks on dips. Volatility is the friend of anyone who invests on fundamentals.

Seeing Liquor Stores N.A down a bit more today I added to my position at $14.90. I checked my report to refresh my memory and while it was rated (lower) Buy at $15.98, the report also said the Value ratios indicated a Buy. So anyhow these things are never guaranteed at all but I decided to Buy some. The recent price decline could indicate bad news is coming and has leaked out. Or it could be just a fairly random drop. It’s interesting to note that Liquor Stores had about the highest dividend yield on our list. A high dividend is certainly no guarantee in and of itself of a good investment. I am familiar with their stores in Edmonton. If anyone is making money with liquor stores these guys should be able to given their scale. So my suspicion is that they will do okay. Only time will tell.