Remove the demise of Nortel from the TSE 300 calculations and that index recently hit an all time high. The Dow and the Russell 5000 are within spitting distance of their tops. Those who believe in the greater fool theory might hope to buy high and sell higher. This is not to say that equity s traditional competitors are particularly attractive now, either. Interest rates are low, so those who choose to lock themselves into investment certificates will be left in the dust when rates increase.
Bonds are dicey, as they too move in an opposite direction to interest rates.
Those alert people who jumped in when the downturn became apparent last fall were rewarded with exquisite returns. Remember, a key mistake that many investors make is to spotlight the rear-view mirror. Although history is a wonderful teacher, it is the view through the windshield that is most significant. As boring as it might sound, waiting through the summer doldrums until late fall will probably prove wiser than pouring additional funds into the market now. Capital preservation is paramount in the current circumstance.