The past month has seen relentless selling on the TSX Venture exchange home to many early stage resource companies. The main reason has been a drop in commodity prices across the board especially oil and gold resulting from a strengthening US dollar. The US markets continue to trade near record highs as the economy recovers driving the US dollar higher.

Here's the TSX Venture Chart -  Now trading at a 52 week low:

tsx venture chart

Some things to remember as we enter the final quarter of the year:

  • With resource stocks on sale across the board its more important than ever to find the quality names;
  • Investors need to remember fundamentally nothing has changed with these companies except for a drop in commodity prices;
  • Lots of names are down more than 20% and some companies are trading at 52 week lows;
  • Be aware of potential tax loss selling later in the quarter (December) and be ready to go bargain hunting;
  • For those with dry powder this is an opportunity to add to positions;

It can be stressful watching the markets go down sometimes it might be best to shut off the screen and enjoy life.

* This is not investment advice. Please do your own due diligence before making any investment decision.