Well, what a 'fun' day today was for someone like me who has been in the market in a big way for less than 2 years. The TSX was down by over 500 points at one point today! I really am enjoying this as I have no plans for my capital for at least 10 - 15 years. Here is a great article from the Globe that sums it up well.
Several buying opportunities keep popping up and some have been too hard to resist. As mentioned in my last post I initiated a position in the Bank of Nova Scotia (BNS) earlier this week.
My second purchase of the week was today, when I felt it necessary to double my stake in Yellow Pages Income fund (YLO.UN) as it dropped to the $12.50 range. In my opinion this is an opportunity to pick up some of the safest, high yield in the Canadian market today. The units are trading at points not seen since just after the Halloween Massacre last November, and now yielding 8.7%. This represents a drop of almost 20% off of it's 52 week high. Heck, stocks with much more potential volatility in their earnings (and thus returns) like Petro Canada, EnCana, and Caterpillar are off by less than this from their highs because of this downturn.
It is my belief that as panic has been setting in for some investors, they tend to liquidate trusts that are more liquid (higher daily trading volumes) more readily, as oppose to trusts that trade with lighter volume. This ensures they get a better price for their units. I am willing to buy 8.7% yield off of a hasty panicked seller, as I believe Yellow Pages is a superb business with a stable business model, stable organic growth, and a fabulous brand name. As long as they do not cut their distribution, which has been hailed as extremely safe, I am fine with a little unit price depreciation in the short term. This is one of those stocks that plays the 'baby' role as it is thrown out with the bathwater on days and weeks like these.
What are you buying? What is your opinion of this credit crunch?