The buy and sell people have to make TWO correct decisions. The buy and hold people have to make only ONE correct decision (when to buy). Buy Canadian bank stocks and utilities on dips and you should do fine.
Investors who brought into any one of the major Canadian
banks in the 1990s would do very well if they hold their stocks to
this day. I won't be surprised if the dividend payout of Bank of Nova Scotia from the last decade has more than
paid for its 1999 stock price.
Having said that I would have second thought before
I put my money today in the banking sector for long
term buy-n-hold investment. Seeing that even the major
banks in the US and UK can go under I would stay
away from all the too-big-to-fail banks here.
To be sure our banking industry is far healthier
and I would be shocked if the government ever has
to come to their rescue like they did in the US.
What concerns me is the sustainability of a
debt-based economy when its growth ceases or
just become sluggish for an extended period.
I am not expecting a general economic collapse.
My thought is just that many industries will survive
a stagnant economy but banking could turn
out to be the hardest hit sector.