Thursday, 28 June 2012

Recent Market Plays: June 2012

Not much happened in June because if you recall, I'm out of gas. I did however sell some units of a bond ETF to finance an increase in my CIBC position in my TFSA account. That worked out according to plan and I intend to keep putting all the money I have into bond ETFs until stock prices become attractive. That way I can collect a higher interest rate than if the money was parked in a high interest saving account while still being flexible enough to be able to jump into stocks when I feel the price is right. Sure, I have to pay a commission fee for the transaction but if I have to sit on cash for a long time because everything is too expensive, then I could be missing out on the extra income that a bond could provide. Also I'm thinking about using Claymore's service of allowing unitholders to buy shares via their PACC (Pre-Authorized Cash Contribution) which would allow me to get shares without paying the commission fee.

I plan to use it to transfer money into a bond ETF and when it's a sizable amount or when prices are attractive, I can sell some units to buy shares. This also puts me in a position where I have to dedicate an amount of my income to investing and will hopefully prevent me from blowing all my money away (if you've been following my journey into budgeting, you'll know that I need all the help I can get). I'm still looking to unload some ETFs and I seem to have amassed enough to make another purchase so look for those two things in July.

-the Paperboy

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