Do you think the Dow has gotten creamed over the past couple of weeks? Frankly, it could have been a lot worse.

Just take a look at the chart above of the TSX Venture Composite Index. While the Dow has fallen 8%, the Venture has gotten downright crushed while falling almost 30% in only a couple of weeks.

The Venture Exchange, infamously the home of $2 mining, exploration, and technology stocks, has been reeling. The fear from the United States subprime debacle has crept north of the border.

The big reason for the fall is because the large Canadian banks have been almost silent and very secretive about their true exposure to subprime debt. Four of the five largest Canadian banks haven’t said a word. Toronto-Dominion (TD:TSX), Royal Bank of Canada (RY:TSX), Bank of Nova Scotia (BNS:TSX), and the Bank of Montreal (BMO:TSX) have failed to come completely clean. 

As I write, CBIC (CM:TSX) has been the only major Canadian bank to publicly reveal its true exposure to nearly worthless subprime debt. After we start getting a clearer picture from these heavyweights, we will get the big turnaround we’ve been waiting for. 

However, these banks did recently announce a $40 billion bailout of Canadian commercial paper markets last Thursday. And since then, the Venture Index has come roaring back adding 6% in less than two trading days.

Overall, the worst appears to be over, confidence has returned to the markets, and now is the time to strike. The fluff is gone and only serious investors remain. It is good to be a brave buyer when everyone else is a fearful seller, but bravery doesn’t mean stupidity.

Investing in Venture Exchange-listed companies can be extremely profitable, after all this market has produced more 1,000%-plus winners over the past few years than anywhere else, but it’s best to have a little guidance along the way.

That’s why I’m up in Vancouver all week to uncover the next big winners and the ridiculous values on sale since the overall market has gotten crushed. This is the kind of foolish selling that creates opportunities for people like you and me.

After all, what did you do back in the summer of 2002 when the Dow hit 7,400? Are you a wealthier buyer now? Or are you looking back at the one that got away? Don’t let this one pass you buy.

After all, the last time it got this bad on the Venture, the markets roared back adding almost 50% over the next seven months. Given current conditions, it wouldn’t surprise me to see it happen all over again. Take a look at becoming a Small-Cap Commodity Prospector and let’s pounce on a few of the best opportunities together here.

Good investing,

Andrew Mickey
Founder, Small-Cap Commodity Prospector

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