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Traders work at their desks at Frankfurt's stock exchange August 8, 2011. (KAI PFAFFENBACH/REUTERS/Kai Pfaffenbach)
Traders work at their desks at Frankfurt's stock exchange August 8, 2011. (KAI PFAFFENBACH/REUTERS/Kai Pfaffenbach)


Rob Carrick on investing strategies for volatile times Add to ...

Rob Carrick - Hi Jean. There are so many variables in play here that I hesitate to give you an answer. Do you have a financial adviser or planner? Sounds like you could use the help of someone who will look at your savings and be able to say whether you need to put a priority on preserving the savings you now have, or if you can afford to ride the markets ups and downs. GICs might be OK, but the cost of safety is a very puny rate of return.


[Comment From Karen ]

What do you recommend someone do with cash (like a bonus payment) right now?


Rob Carrick - Hey, Karen. Pay down debt, be it credit cards, credit lines or mortgages. You get a guaranteed rate of return when you pay off debt. If you have no debt (luck you), then how about using the money to build an emergency fund?


[Comment From Alman ]

Where do you see gold going in the mid-term? Will gold stocks plummet when the market takes a serious dive or will they resist the swing of the market? What are your thoughts on buying material gold?


Rob Carrick - Material gold? Like, why? Better to buy a gold bullion ETF or closed-end fund. Let the fund handle the cost of storing the gold. As for gold bullion prices, they'll likely rise and fall according to investor sentiments. Gold stocks are tricky. They can fall in price, even while gold bullion is doing well. That's what happened in 2008.


[Comment From Danesh ]

Hey Rob, thanks for doing this. In your opinon, do you think this is a market crash and will keep going this way, or is this a market correction, a temporary setback and pushign all of us back to reality?


Rob Carrick - Most welcome, Danesh. Always happy to talk to readers. You can reach me any old time on my Facebook page at http://www.facebook.com/robcarrickfinance?ref=ts. As to your question, I see the current market as being in a correction phase that indeed brings us back to reality. It will pass.


[Comment From alex ]

Hi Rob: We sold our Greater Vancouver house recently because we're huge believers in the bubble/correction theory. We're now watching the RE market crumble, and are very happy renters. Just wanted to say thanks for having the guts to step up several times in recent months and call the Canadian (and especially BC) RE markets seriously overvalued. I think you helped a lot of people who were willing to listen. Of course, now we have to decide what to do with the proceeds of the sale (several hundred thousand dollars). :-)


Rob Carrick - Hi Alex. Thanks for the props. Have to be clear in saying that I never actually made a grand pronouncement that the r/e market was over valued. I just assumed it in looking at strategies for homeowners and buyers. The r/e market isn't a one-way ride higher.


[Comment From peter ]

A couple of weeks ago i dumped all my mutual funds, out of fear just what is going on now. Where would you recommend to put your money?


Rob Carrick - Peter, Peter, Peter. I'm not sure what to tell you. Have you decided once and for all that stocks and equity funds aren't for you? if so, then GICs are a good, safe, option. You have to accept very low returns, though. I wouldn't want to see you buy GICs, get disgusted with the low yields and then buy back into a stock market that has risen a whole bunch.


[Comment From Ken ]

There are solid oil/pipeline dividend payers out there; would you rate these better than gold for jumping back in?


Rob Carrick - Ken, depends on what your goal is. For long-term share price gains and dividend income, those pipes look good. To me, gold is speculative. Oh, and it pays no dividends.


[Comment From Dan ]

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