Stocks are up again this Friday morning.
Canada’s GDP grew at 2.7% annualized in the third quarter. GDP numbers are always presented in real dollars so in dollar terms it would have been a little higher than that after adding in the official rate of inflation.
In terms of the stocks I hold I am inclined to trim positions given that I have had such strong gains. But it’s hard to know what to trim. To me, Melcor and Wells Fargo still look quite attractive, so I will not trim those. With Canadian Tire I had quite a large position a year ago and it seems I trimmed a little too fast on the way up. So I am not inclined to trim more. With Toll brothers having risen lately I may trim that. I have just now entered an order to trim that a little if it hits $35.50.
I am certainly surprised just how well the markets and our stock picks have done this year. Basically I am going to continue to “dance with the ones what brung me”. My cash position is about 34% and if the markets or any of my stocks were to suffer a large decline I am prepared to buy low.
Everyone’s risk tolerances and risk capacities differ based on many factors. These is never a one-size-fits-all answer when it comes to being in the market at all or to buying or selling any particular stock. Markets are unpredictable. But they tend to be rewarding in the long run. By attempting to buy stocks that appear to offer good value based on fundamentals and trimming or selling when they appear expensive relative to fundamentals it seems that one can do quite well over the years.