September 2, 2015 (8:40 eastern time)

On Tuesday, the S&P 500 fell 3.0% and Toronto fell 2.7%.

I’d rather see rising markets but declines are undeniably a fact of life for investors. As I have said many times, I don’t particularly try to predict declines or step aside. I try to build cash as markets rise and spend it as markets fall. Over time that has worked. Also over the years I have learned not to get too bothered by market declines. I don’t lose sleep over it.

I added yesterday to my small position in CN rail.

Yesterday after the close the futures on the DOW were down another 400 points or so but last evening were up 150 points or so. As of now they are up 120 points.

Perhaps the watchword is “Get in, sit down, shut up and hang on tight”. But others are free to follow a different approach.

P.S. Big kudos to Penn West for cutting director pay by 40% and chairman Rick George’s pay by 50% as part of yesterday’s cuts. It won’t hurt those rich directors much but it is a welcome move and shows a better attitude. I don’t recall any other company doing this although I am sure there has been a few over the years.