• Between Thursday and Friday last week ( 20th & 21st of November) I decided to borrow a substantial amount of money from my HELOC in order to ante up in the market.  I have been investing into stocks I want to hold until the next peak for the past few months but last week decided to make a larger plunge. 

  • Since we had no mortgage debt and the prime rate through CIBC is currently 4% one of my criteria was a dividend of at least 6% from any stock I bought with borrowed money.  As long as the dividends remain secure (?) I have built in a safety margin should the floating prime interest on the LOC change.  Fortunately, last week there were a large number of Canadian stocks which fit my criteria.  
  • I decided to invest the next 3 years worth of allocated savings over 2 days.  
  • Some of the stocks I now own are: MFC, BNS, BMO, IGM, SLF and PWF.
  • I am not necessarily a conservative investor and felt quite comfortable purchasing these stocks - I have not lost a wink of sleep .. yet.
  • Two advantages that I factor in to my decision are my age (just under 40) and my job (about as solid a ‘bond’ as is possible).
  • Should there be another substantial drop (at least 25%) I will borrow and invest more.   

  

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