Black Swan Hype (2)

Our Japan “Black Swan” is now just over a week old and so I wonder how investors reacted to the volatility of last week. Several industry “experts” went public with profound statements. For example one money manager in a memo to a securities firm, “if you’re your not invested buy now”, and (the same guy) “if currently invested sell now.”

Personally I would rather listen to the markets rather than a black swan which is a large not too bright water bird found mainly in the southeast and southwest regions of Australia. It seems the best stocks were the ones that were strong before the Japan event and remained strong after the event. Some examples are forest stocks, energy stocks and the financial stocks.

I am currently over weight the CDN bank stocks and using the BMO Equal Weight CDN Bank ETF (ZEB) - not a bad yield 3.7%, pays monthly with opportunity for capital gain.