In present dropping market, is this good time to Add Bull List Stocks

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Noticed a steep drop on Friday and again today….I’m keen to know if that is a good idea to add your Bull list stocks?
I was looking to add few like MFC, EIF, BMO, WELL, AT, QSR etc

Appreciate if you could give me some guidance on these as well as if you find any other better valued stock at the moment to add in my portfolio.

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Asked on November 30, 2021 10:39 am
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Private answer

It's very important we add stocks into our portfolio based on strategy, allocations and risk tolerance.

We do not simply want to add stocks simply because prices are falling. The markets are down around 3.5% since Friday. This could accelerate to 10%, 15%, 20%. Or, it could stop and we could see a turnaround tomorrow and they could gain 10% in December. We simply never know.

Buying stocks based on a long term view of the underlying company's success is the right way to invest. Buying stocks based on the fact they've dropped in price can get us into trouble. It can cause our overall portfolio weightings to go out whack and our portfolios may end up being outside of our acceptable risk tolerance in terms of volatility.

If we didn't find a Bull List stock a strong opportunity, we would remove it from the list as we've always done.

That being said, I am personally not adding to anything at this time. I bought AW.UN yesterday, but for the most part I'll be sitting on a bit of cash waiting for the volatility to end. This is personal preference. I guess you could say I like to let the storm settle a bit before I buy, rather than driving right into it.

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Posted by Dan Kent
Answered on November 30, 2021 12:04 pm