Weekend Reading – The Subprime Meltdown Edition
With the big stock market drops making all the news these days, I thought it would be useful in posting some information as to why.
- As I posted yesterday, Globe Investor explains why the subprime meltdown is affecting the stock markets in an article called "The Credit Crunch".
- CBC reports that the sub prime meltdown is affecting the loonie.
- Could the expected rate increases be stalled due to the current financial market turmoil? I hope so!
In other news:
- Another great carnival of personal finance posted @ My Open Wallet. I submitted my article on the American Express Centurion (Black) Card.
What's your take on the sell off? Are you selling off with the crowds or hanging in there? Me? I started dabbling in some financials yesterday afternoon. :)
7 Comments, Comment or Ping
1. Lawrence
FT, good call on this topic! I was just about to ask your thoughts on the markets’ current situations. To me it feels like the early 2000s when I lost a bunch . Should we expect a rebound some time in the Fall? The patterns seem similar. I think your idea of investing in the banks are a good idea. I’m not planning to sell anything right now, but I’m going to wait until Oct-Nov to see how the stocks are to reinvest. Thanks for reading my mind :) P.S. How’s your house coming along?
Aug 17th, 2007 @ 12:22 pm
2. Mike
Am waiting to see if it will go down some more. Excellent time to buy!
Aug 17th, 2007 @ 6:46 pm
3. Warren
I’d be a little hesitant to try and “catch a falling knife” in what could be a protracted drop in the market. Its much easier to jump in as things start to rise.
I have a feeling this will be unwinding for a while, we haven’t heard the end of the credit issue.
Aug 17th, 2007 @ 9:08 pm
4. Nabloid
Times like these just make certain stocks attractive and should be used to our advantage. It might seem like short term pain, but I think if you spot some opportunities, you’ll forget it while you enjoy the long term gain.
Aug 18th, 2007 @ 10:41 pm
5. Rod Payne
FWIW, I just bought some RY-T (not an endorsement or intended as investing advice).
My only other comment on the situation is the chuckles I get when I ask people how the points on the various indexes are calculated. someone told me the TSX dropped 500 points with a very perturbed look on their face. So, I asked them to explain what that means…..no idea. Sigh.
Aug 19th, 2007 @ 6:30 pm
6. FrugalTrader
Hey Rod, I also bought some RY-T before the gap up. Hopefully it only goes up from here. :)
Aug 19th, 2007 @ 6:37 pm
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