It's not a typical panic that one should be buying.
The fear factor comes from what we don't know:
We don't know whether U.S. economic growth is going to recover from the soft patch or is slipping into a lengthy recession. We don't know whether Canadian banks are going to report good Q3 earnings in a few weeks, or lousy earnings (hint - $57 billion in Canadian M&A in the last quarter would indicate good earnings). In the face of not knowing, you need to make sure you have an asset allocation that fits your personality and risk tolerance.
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You never buy amid panic and the uncertainties are larger than what you mention. In addition to an anemic US recovery which is likely to stall, there is much worry over global growth and the mountains of debt weighing upon the US and Europe. The debt ceiling deal was a week bid to fix our problems and Europe simply lacks the resources to intervent to prevent a default by either Spain or Italy.
U.S. Debt Deal Was a Red Herring [View article]
The fear factor comes from what we don't know:
We don't know whether U.S. economic growth is going to recover from the soft patch or is slipping into a lengthy recession.
We don't know whether Canadian banks are going to report good Q3 earnings in a few weeks, or lousy earnings (hint - $57 billion in Canadian M&A in the last quarter would indicate good earnings).
In the face of not knowing, you need to make sure you have an asset allocation that fits your personality and risk tolerance.
______________________...
You never buy amid panic and the uncertainties are larger than what you mention. In addition to an anemic US recovery which is likely to stall, there is much worry over global growth and the mountains of debt weighing upon the US and Europe. The debt ceiling deal was a week bid to fix our problems and Europe simply lacks the resources to intervent to prevent a default by either Spain or Italy.