Thursday, August 11, 2005

Long term investments

As my FDG.UN looks poised to be called out :( I will be looking for another "long term" investment. I may buy FDG.UN again, but I really want to get it around 120. I am also looking at CIBC (CM), because of the recent price correction it experienced lately. My buy target for CIBC is 60.

Unlike American banks, I like Canadian banks a lot. I seriously think you can buy a Canadian bank and hold it forever. The reason is because the Canadian economy will be one of the best performing economies in the years to come. Not only does Canada have lots of resources, but the oil sands are also the second largest oil reserves in the world (next to Saudi Arabia). When the oil sands finally come into development, a lot of money and jobs will flow into Canada, which will boost the economy. This, along with Canada's good reputation, will attract a lot more people to live in Canada. Thus, with the population boom, more people will use the banks, resulting in a sustained growth for the Candadian banks.

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