Markets are down again today with the S&P 500 down 1.7% and Toronto down 1.6%.
The U.S. bank stocks have been hit hard. If I had U.S. funds available I would add to my Bank of America and Wells Fargo positions.
On Wednesday this week the FED will release detailed results of its annual stress tests. I understand all the banks passed the test. This could lead to a dividend increase by Bank of America and also a general increase in confidence regarding the financial strength of the banks.
Other U.S. stocks that I would consider buying include Toll Brothers and Berkshire Hathaway.
In Canada the decline in the stocks I follow has not be as deep. But I did add a small amount to my Canadian Western Bank position this morning. I would also consider AutoCanada and Stantec.
I would not be buying the likes of Boston Pizza or RioCan today since they have not declined and it seems more sensible to look for stocks that have dipped materially on BREXIT.
I don’t think anyone can predict whether the market will continue going down in the short term or instead turn around. My strategy has always been to continue to try to buy stocks that appear to offer good value.