April is always an interesting month on the markets, the preceding month to the infamous investing adage “Sell in May and go away”. Already we are seeing pressure on world stock prices, and global recessionary indicators. Markets have had a good run-up since June 2012. Both the DOW and TSX advanced to their 2013 highs. Both markets were due for a correction at some point. On top of that, Gold had also been hitting its highs, just shy of $1,800 USD per troy ounce. Many gold-bugs wondered whether gold would even be able to reach the 2K mark before a major pullback.
The trigger was Monday, April 15th, with the massive selloff of Gold Bullion. A troy ounce of gold closed on Monday at $1,361 USD, off -24% from its October 2012 highs. The TSX Composite Index was down -321 points (- 2.7%) for that day. Both Dividend Mantra and I took advantage of the panic selling that day, which pummelled the materials and gold sectors. He purchased shares in Australian mining giant BHP Billiton (good call Mantra). I purchased shares in the Canadian companies, Teck Resources and Barrick Gold (see link below), the latter being more of a risk play. Regardless, there are times when you make a decision – do you buy when everyone else is selling?
Check out these other great reads from around the web!
Dividend Investing for Beginners @ Dividend Mantra (A must read!)
An Investment in Exxon Mobil Stock @ Dividend Growth Investing
Dividend Stock Analysis: Canadian Utilities @ Passive Income Earner
Kinder Morgan Rewards… @ Dividend Growth Investor
High Yield Stocks Raising Dividends @ Dividend Ladder
5 Stocks Hitting New Highs @ Canadian MoneySaver
Recent Buy: Teck Resources and Barrick Gold @ Dividend Ninja
5 Dividend Stocks Trading at Appealing Valuations @ Dividend Monk
What Stocks Have Paid Dividends for Generations? @ My Own Advisor
Have a nice weekend everyone! 🙂
Thanks for the mention!