Overrated

DOUG By Guest Blogger Doug Rowat

Avoid home-country bias. This has become the now familiar and constantly repeated refrain of Canadian portfolio managers, especially after the oil shocks of 2014 and 2015. The continuous warning: don’t overweight Canada, fear our market and be aware of all its dangerous shortcomings. And we’ve all seen THE stat: Canadian equities make up only 4% of the world’s market cap. And the argument: our market is concentrated and overly dependent on commodities.

So, it’s become the ultimate blasphemy for a portfolio manager to take a heavily overweighted position to Canadian equities, prompting finger wags and harsh reprimands. Take none other than investment giant JP Morgan, which argues that investors “suffer” from home-country bias, never acknowledging that they may actually benefit. Frequently, the experts also cite the crippling fear of investing globally as the source of the bias.

Well, we don’t live in fear. In fact, we actually maintain a global portfolio for our clients with about two-thirds of our equity weighting focused outside Canada. (Hey, we get global investing—we even know what EAFE stands for.) However, most of our client portfolios still have a 21% weighting to Canadian equities—many, many times Canada’s meagre weighting on the global equity-market stage. But we don’t believe our clients are “suffering” because of this. Yet we still feel the judgmental eye of all the portfolio managers who have accepted the home-country-bias argument as gospel. How dare these cowboys at Turner Investments adopt such a reckless Canadian equity overweight?

Well, we dare. And here’s why:

1. There’s no compelling evidence suggesting that Canadian equities are any more volatile than global equities. Looking at standard deviation, a measure of risk, Canadian equities have been about equal in volatility to global stocks throughout most periods including the financial crisis. In fact, overall, their volatility has been slightly lower.

Standard Deviation: Canadian Equities no more Volatile than Global Equities

Source: Bloomberg. Chart measures 6-month rolling standard of the S&P/TSX Composite and the MSCI World Index. Standard deviation measures the amount of variation or dispersion within a particular index or security. In other words, it measures risk.

____________________________________________________

2. We use a capped Canadian market ETF, so we significantly reduce concentration risk. Recall that Nortel reached a peak of 35% of the Canadian market back in 2000. Such a dominant—and risky—weighting doesn’t occur with a capped ETF.

4. Holding Canada at roughly one third of our equity weighting is still significantly lower than the average Canadian investor. According to Morningstar data, the typical Canadian investor weights almost two-thirds of their equities towards Canada. THAT is a substantial wager.

5. Currency is simplified. Most Canadians, naturally, utilize Canadian dollars, so holding Canadian equities in Canadian dollars is practical and reduces currency risk. Forecasting markets is hard enough, never mind currency direction. There are also tax benefits to holding Canadian equities such as the dividend tax credit.

6. We’re active portfolio managers. We get paid to overweight areas that we favour and underweight areas that we don’t. Right now we like Canada.

And there’s a lot to like. We recognize that the Canadian market has underperformed this year, but we have renewed confidence in our economy. Our annualized GDP growth rate is well above 3%, eclipsing virtually all other developed nations. And our impressive growth has not gone unnoticed: the IMF earlier this week stated that it expects Canada’s GDP growth rate this year to outstrip all other G7 nations. Our banks are enormously profitable and consistently raising dividends. The US economy is doing well and the US is, of course, our largest trading partner. And finally, our market valuations are reasonable with Canada trading at a meaningful discount to the US.

The S&P/TSX Composite was the only major stock market in the world that failed to advance in the first six months of 2017. We view this as an anomaly given our brighter economic outlook and the impressive profitability of the Canadian banks—the largest component of our market. We think a ‘catch up’ trade is possible in the second half.

There is some merit to the home-country-bias argument. We don’t, after all, want to sacrifice diversification simply to wave the flag. We’re also not blind to the fact that the energy sector hasn’t exactly been shooting the lights out. But all the anxiety that’s been layered on Canadian investors if they dare to have a portfolio with more than a 4% weighting to Canada is ridiculous.

We have a great country. Invest in it.

Doug Rowat, FCSI® is Portfolio Manager with Turner Investments and Senior Vice President, Private Client Group, Raymond James Ltd.

109 comments ↓

#1 Party on Garth on 07.29.17 at 3:52 pm

Household credit numbers for Canada (to the end of June, 2017) from the Bank of Canada:

http://credit.bankofcanada.ca/householdcredit

Business credit numbers for Canada (to the end of June, 2017) from the Bank of Canada:

http://credit.bankofcanada.ca/businesscredit

#2 For those about to flop... on 07.29.17 at 3:55 pm

CONFIRMED PINK DRAWS.

I don’t recall doing this before on a mass scale ,but I thought I would show you guys some of my cases I wouldn’t normally put up as I think it showcases the tug of war currently going on in Greater Vancouver at the moment.

Here are some recent confirmed sales that made less than 10% before expenses.

Some of them perhaps took a small loss , but observing from the outside let’s give them the benefit of the doubt that they got out o.k and can get on with their lives or if they are addicted to flipping,find a better target…

M43BC

8847 134b st Surrey paid 1.12 …sold1.17

505 -123 1st Ave w Vancouver paid 520 sold 550

14510 78 ave Surrey paid 885 sold 943

2220 No4 Rd. Richmond paid 826 sold 900

1805 Eighth Ave New Westminster paid 1.12 sold 1.18

8933 149th st Surrey paid 800 sold 860

2995 Fleet st Coquitlam paid 1.08 sold 1.17

10691 Seaward Crt. Richmond paid 860 sold 938

#3 Gasbag Boomer on 07.29.17 at 3:59 pm

Thanks Doug, I and perhaps, others, wanted to hear this from one who is a professional.

#4 unbalanced on 07.29.17 at 4:01 pm

Where oh where is Jimmy!

#5 Banned Canadian Millenial on 07.29.17 at 4:09 pm

All that GDP growth and 0 real wage growth.

Really makes you think.

#6 Joshua on 07.29.17 at 4:12 pm

Doug, great article as per usual. Just a quick question:

Have you ever hear the argument to forego emerging markets in one’s portfolio as Canada has performed very similar to emerging markets without the political instability and currency risk?

Keep up the great work!

#7 nick on 07.29.17 at 4:18 pm

I can see the TSX performing other indices, but do you think the TSX/canadian equities will move upwards when we’re raising interest rates?

#8 nick on 07.29.17 at 4:18 pm

I can see the TSX outperforming***

#9 Weird blog on 07.29.17 at 4:31 pm

Nearly EVERY balanced Canadian portfolio manager has Canadian exposure of minimum 20%. This ain’t new .

Unfortunately , it has hurt returns over the past 15 yrs . Badly .

In a non-registered exposure has tax advantages . Other than that it should be minimal exposure .

#10 espressobob on 07.29.17 at 4:35 pm

I respectfully submit, the only reason to overweight the TSX is in a non-registered account. There are tax advantages to be had.

It seems a waste to have a position in Canadian equity in a TFSA with the exception of a few side bets, while the contribution room is better used for foreign content.

RRSPs are fully taxable upon withdrawals and overweighting a sector or index is questionable.

Then again I could be wrong? It just makes sense to position oneself tactically and enjoy any relief the CRA allows.

#11 Thank goodness on 07.29.17 at 4:36 pm

We have a prime minster who can’t say no to a Magazine cover .

What a mug

#12 TSX on 07.29.17 at 4:40 pm

As long as she continues to stay below its 200 DMA will not touch it . Technically its a mess .

No thank you .

#13 Victor V on 07.29.17 at 4:56 pm

#1 Party on Garth

Truth lies in trends:

https://trends.google.com/trends/explore?date=today%205-y&geo=CA&q=Bankruptcy

#14 oncebittwiceshy on 07.29.17 at 4:58 pm

>>>>>>>>> For those about to flop… on 07.29.17 at 3:55 pm
CONFIRMED PINK DRAWS.

“I don’t recall doing this before on a mass scale ,but I thought I would show you guys some of my cases I wouldn’t normally put up as I think it showcases the tug of war currently going on in Greater Vancouver at the moment.”

Hey Flop, keep them coming. You are in a paper war right now with a whole bunch of unemployed/underemployed real estate agents that are trying to dupe buyers.

They come on here with fake stories of bidding wars, chinese buyers, failed renters and unlimited housing price growth.

It’s funny that in the last 8 yrs. the media did all their work for them and the only real bull we saw on this site was Devils Advocate and he didn’t lower himself to the nonsense that we’re seeing now.

As the markets continue to fall apart I expect to see a lot more realtors, specuvestors and the likes posting about unlimited house price growth.

The discerning reader will question the need to advertise big real estate gains when the media does an adequate job of that, unless …..

#15 young & foolish on 07.29.17 at 5:24 pm

God loves renters …. and Dividends :)

#16 crowdedelevatorfartz on 07.29.17 at 5:26 pm

My gawd.
BC finally rids its self of a vapid, narcissitic liberal Premier only to be replaced by a Prime Minister.
Is there nothing this man wont pose for?

#17 Stan Broock on 07.29.17 at 5:31 pm

We appreciate you thoughts on TSX, Doug.
Thank you but I will pass.
—————————-
Garth, for a second before refreshing the screen I thought I saw another article from you discussing the new Rules for taxation of private corporations.

With a link to the Ministry of Finance proposal and some suggestion on where that piece of art should be showed.

While navigating to the link and reading the 63 pager, on my way back to greaterfool.ca I saw your article disappeared.

What really bothers me in their proposal/I started reading it/ is the arbitrary interpretation of reasonableness.

The have the guts to be the authority to determine how much your labour/or your spouse’s labour is worth.

I suffered from Premature Publication. The piece in question will unleashed tomorrow. — Garth

#18 Craig on 07.29.17 at 5:47 pm

Re #4 “Where oh where is Jimmy !” Sorry, couldn’t help myself.

https://www.youtube.com/watch?v=pqE66RltUaQ

#19 Timmy on 07.29.17 at 5:58 pm

Doug, for a non-registered account, does the tax benefit for holding CDN stocks outweigh the benefit of diversification, or would you still advise people to hold foreign stock in a non registered account despite the tax implications?

#20 For those about to flop... on 07.29.17 at 6:04 pm

I suffered from Premature Publication. The piece in question will unleashed tomorrow. — Garth

//////////////////////

You got your problems, I’ve got mine.

I might be a Flop,but as the realtors on here are discovering I’ve got staying power…

M43BC

#21 Tony on 07.29.17 at 6:06 pm

The only sector which could break to the upside is the golds but all gold stocks are unimaginably overvalued relative to the spot price of gold. The utilities should do well for the next couple of decades but the valuations in the U.S. stock markets will collapse the TSX. There are things like HZU and HBU which do trade on the TSX but do erode over time. You could buy Canadian stocks and hedge your positions which is what would be more than prudent.

#22 Dollarama nation on 07.29.17 at 6:07 pm

A veritable goldmine from crap.

#23 Doug Rowat on 07.29.17 at 6:09 pm

#9 Weird blog on 07.29.17 at 4:31 pm

Unfortunately , [Canadian equities] has hurt returns over the past 15 yrs . Badly .

In a non-registered exposure has tax advantages . Other than that it should be minimal exposure .

We get paid to flex weightings. No one would keep a constant underweight position for 15 years. There are times when Canada outperforms. Naturally, anonymous poster, you only pick the best performing markets and hold them for 15 years straight.

–Doug

#24 Chaddywack on 07.29.17 at 6:13 pm

I think I vomited a little in my mouth when I saw the picture on today’s article.

#25 Doghouse Dweller on 07.29.17 at 6:14 pm

Dear Doug,
home-provivce bias
Dazed and confused~~~~~http://tinyurl.com/ydzbbz8g

According to the National Post It`s raining money in Quebec http://tinyurl.com/ybc4xqxa

Even more amazing is that the Fonds de solidarité FTQ. Had 9.5% return last year and averaged 4.5 % over 10 years, since the MBS fiasco with a 35% tax break for Quebec investors.
Every Labour Sponsored fund in Canada promptly went belly up and into oblivion while this investment shined brighter than Garth`s new Harley.
So how did these Franco financial engineers make a fist full of cash
while the Bay Street Anglos went broke ?

#26 Boring on 07.29.17 at 6:17 pm

Dead boring.

#27 conan on 07.29.17 at 6:21 pm

I really like the Canadian markets. It goes up, and it goes down, in a predictable manner, and as a added bonus, has a currency schwing to it. Canada is great, but you have to be active. Buy and hold equals disappointment.

Re: Premature E-puplication,
I am pretty sure self employed peeps will still be able to use plenty of deductions. Just the emphasis will be on legitimate ones.

Want to split money with your spouse? Make sure he/she does something to earn the money. If not, then see ya later, deduction denied.

Want to get your children SIN numbers and pay them a salary/wage/dividend equal to the no tax threshold? Then, make sure they do something to earn that money. If not, see ya later, deduction denied.

These changes do not bother me. Sorry, not seeing the fury, and I use the detailed business activity tax form, when I file.

https://www.facebook.com/officialfsensitivity/videos/469865416723279/

#28 Doug on 07.29.17 at 6:30 pm

We get paid to flex weightings. No one would keep a constant underweight position for 15 years. There are times when Canada outperforms. Naturally, anonymous poster, you only pick the best performing markets and hold them for 15 years straight.

………..

no one would keep a constant underweight position for 15 yrs ? huh? what are you talking about. . Again, home bias is clearly affecting you. As if holding a Canadian position at 20% is ‘normal’, for WHOM? A CANADIAN? No other sane non-canadian would.

And yes, there is no way i’d hold a position in a country that contributes 4% to world GDP at 20% of portfolio (UNLESS significant given tax advantages…so i’m higher that 5%).

your last sentence was foolish

#29 Ace Goodheart on 07.29.17 at 6:35 pm

Hey dudes and dudettes. Right now you should be buying US and international equities. Why? Canadian dollar is high. So our exports will suck (suckaka) and our money is worth more so you get a deal when you buy international.

Dec 2017 will be a great time to get into US equities. High Canadian dollar and Trumpster will be crashing and burning (did Scara what’s his face really say Steve Gannon was sucking his own c#$K?).

Happy weekend!

#30 Dan.t on 07.29.17 at 6:36 pm

wonder how that works out in YVR? Buy a condo and pay it off now when you are 69. What the f***k i wrong with Canadians…. seriously. ok, i admit, I m a bit buzzed, just had a night on the town…beautiful european city, no one at all talked real estate, drunk, eat, all for about 35bucks canadian.

of course if I got my real estate licence in Canada, I’d be eating caviar and lobster (imported of course), while every one else, shackled in debt, pays off their 600k condo over the next 58 years.

I hope sentiment changes fast about re, but, wont happen. 24/7 HGTV, province news, Sun, has everyone brainwashed.

#31 OttawaMike on 07.29.17 at 6:42 pm

Oil is in the crapper and will continue to be for another year or two.
With $40 oil in the lens, how do you navigate Cnd exposure around that?
—————————————————————-
From the nation that brought us mimes, we now get mechanical spiders and horse dragon thingies. Very cool bit of engineering:
https://twitter.com/MidCenturyMike/status/891125993632653312

#32 Zen on 07.29.17 at 6:50 pm

Great post! I like to take full advantage of the dividend tax credit before worrying about holding too much Canadian equity. I am recently retired with substantial RSP. My wife is 10 years younger and doesn’t work. We’ve structured a portfolio under her name that is invested in Canadian dividend growth ETF and stocks. Her portfolio generates around $50,000 dividends annually, all tax free. I hold mostly foreign equities in my account. Dividend tax credit is a huge tax break we should not overlook.

#33 espressobob on 07.29.17 at 7:00 pm

This is where the rubber meets the road.

https://www.blackrock.com/ca/individual/en/products/239697/ishares-msci-world-index-etf

Not a perfect ETF by any means, but we live in a different era. No one can deny the long term performance from this puppy.

Commodity trends, though unpredictable are provided in all the major indices, not just the TSX.

Global index investors are in fact the benchmark.

#34 Sydneysider on 07.29.17 at 7:03 pm

“We have a great country. Invest in it.”

Looking at the data posted by #1 Party On:

Total household credit is similar to GNP, and rising at around 6% a year (annualised figures). However, GNP is rising only at 3% annualised.

So, it takes $2 of borrowing by Canadians to produce $1 increase in economic activity as captured by GNP. It ought to be the other way around (http://www.investopedia.com/terms/m/multipliereffect.asp).

#35 ANON on 07.29.17 at 7:09 pm

GO Canada!

#36 Howard on 07.29.17 at 7:19 pm

Funny how progressivist Canadians hate the US until it gives their Kardashian leader a little attention.

#37 Howard on 07.29.17 at 7:24 pm

#21 Tony on 07.29.17 at 6:06 pm
The only sector which could break to the upside is the golds but all gold stocks are unimaginably overvalued relative to the spot price of gold.

———————————–

Strange comment.

Barrick is down 60% from its highs. The other majors are at similar levels.

The mid-cap miners are down 80% from their highs.

The juniors are down 95%+.

“Unimaginably overvalued”?

#38 Howard on 07.29.17 at 7:25 pm

#11 Thank goodness on 07.29.17 at 4:36 pm
We have a prime minster who can’t say no to a Magazine cover .

What a mug

———————————

Or a “first lady” who can’t say no to a microphone.

Maybe Harper can teach her how to sing.

#39 Ace Goodheart on 07.29.17 at 7:26 pm

18 inch pvc pipe sunk into the lake bed and then dug down with a post hole digger hand shovel gets you a dock footing in three feet of water. Similar to how they built the Brooklin Bridge.

Another fun weekend at the cottage.

If I have enough red wine I might just buy another crappy roach infested rental building.

Prices are right and sellers are desperate and I have the cash…..

#40 Ace Goodheart on 07.29.17 at 7:41 pm

Oh if you guys want to make some serious cash. On a foolish and not to be relied on basis. California company that makes cars that don’t need gas. Screaming short. Foolishly yours. Ace

#41 OttawaMike on 07.29.17 at 7:46 pm

Ace Goodheart
Amatuer.

~Set up a piece of steel pipe with a cap end on it.
~The cap will have a 1/2 NPT fitting onto it.
~Use the pressure of a 3000 psi pressure washer to excavate the pipe into the lake bed once you have pounded the pipe in. as you wash away the mud the pipe will sink further with a bit of tapping.
~fill pipe with concrete to ice proof it.

#42 Have a few colleagues .. on 07.29.17 at 7:48 pm

South of the border . One is a DIY. He chuckles at the thought of having 23% of a portfolio in Canada .

Got me thinking . Guess folks in say England have likely 23% in the U.K.

Home bias is the real deal . Gotta come with tax advantages . Ours only do in a non- registered account

#43 AK on 07.29.17 at 7:52 pm

#11 Thank goodness on 07.29.17 at 4:36 pm
“We have a prime minster who can’t say no to a Magazine cover . ”
——————————————————————-
We have a prime minster that needs to be kicked out of office next election.

#44 Smoking Man on 07.29.17 at 7:54 pm

Repugnant Decadence. Not you Doug.

The creep in the Rolling stone cover.

#45 nobody on 07.29.17 at 8:15 pm

#6 Joshua
Emerging economies are concentrated on simply digging out oil and minerals or simple basic crops with minimal processing or value-add and them shipping them to china to be turned into valuable goods.

Nothing like Canada

#46 Sir James on 07.29.17 at 8:21 pm

Wow, nice article in RS.
Never knew Justin was an “advanced engineer”?

#47 crossbordershopper on 07.29.17 at 8:30 pm

the canadian market sucks, it really always has. there is little volume in many mid sized companies, little following of them, very borrowing.
the us market is the only market to trade, follow and invest in, canada is just a bunch of banks, insurance energy mining and few diversified, under that its a quck trip to bs mining, company. $.13 stock trading on venture, and you know where they all end up. reversed split, merger and then puff,
i see a recession in canada, i dont know where they get these stats, probably the same putz who is counting inflation at 1% year cook the books anyway you want, the truth is with very few exceptions, canada is a sub par place to run a business, any business, over regulated, employees paid too much, ($15 bucks min coming), safety rules bla bla bla. i can hired middle aged good people for $12 us in the usa every day of the week. some kid wanted 50 bucks cdn to cut my lawn, i was thinking how do i get willy up here from florida. unbelievable up here.
in term of investments, low liquidity in canada in general people dont trade stocks, people have diversified funds charged big fees for nothing,
much more dynamic market in the usa.

#48 Sir James on 07.29.17 at 8:34 pm

Welland inventory and prices climbing, lots of OK house still under $200K. Lots of saws buzzing and hammers pounding away at the renos.

#49 Tony on 07.29.17 at 8:35 pm

Re: #37 Howard on 07.29.17 at 7:24 pm

Yes unimaginably overvalued and the silver stocks are much more overvalued than the gold stocks relative to the spot price of silver. Suffice it to say the odds are near 100 percent that physical gold and physical silver will outperform the gold and silver shares over the long term.

#50 Paul on 07.29.17 at 8:36 pm

Doug,please put up some kind of warning when you post a photo like that. Just finished a nice dinner glad I ate first tho!

#51 Doug Rowat on 07.29.17 at 8:40 pm

#28 Doug on 07.29.17 at 6:30 pm

your last sentence was foolish

I would say the same about your entire comment. Great name though.

–Doug

#52 Smoking Man on 07.29.17 at 8:44 pm

I never knew who Hunter S Thompson was till I got my head free of the dog leash and strayed on to this pathetic wild dog run.

What an incredible discovery he was for me. He writes like me and we have the same appreciation for the worthyness of substance abuse in art.

If he wesen’t burned and shot out of a cannon he would be Rolling mad in his grave. That former rebalution of a magazine has gone elite main stream.

Hunter wasn’t right or left. He had great bull shit detection system. That’s why he hated Nixon.

If he was alive today he would be 100% Deplorable sporting a MAGA cap.

#53 Doug Rowat on 07.29.17 at 8:48 pm

#6 Joshua on 07.29.17 at 4:12 pm

Doug, great article as per usual. Just a quick question:

Have you ever hear the argument to forego emerging markets in one’s portfolio as Canada has performed very similar to emerging markets without the political instability and currency risk?

Indeed, the standard deviation chart for emerging markets would look significantly different versus global equities than Canada does, so you have to be comfortable with the risk. However, at times, such as periods where the US$ underperforms or there is strong global demand for commodities, which often go hand in hand, emerging markets have considerable merit and would likely outperform Canada.

–Doug

#54 Cdn Mom on 07.29.17 at 9:08 pm

“#156 oncebittwiceshy on 07.29.17 at 1:35 pm

>>>>>>>>>>CDN Mom: “I can back this up, and have mentioned it before.
Until June 1, I had 4 mortgages with Scotia…my home (2003), my soon-to-be home (waterfront/rec property) (2015),and two rental properties (2012 and 2014). Every single mortgage initiation qualified (stress-tested) on the 5 year posted rate. <<<<<<<<<

Wow, my brother in law had the exact opposite experience with Scotiabank. He has purchased 3 properties over the last 4 yrs and 2 of them had 20% down and the other was CMHC.
When I asked about the amount of debt he was taking on he was nonchalant about it and said if the bank wasn't worried, why should he be?
When I asked about stress testing he chuckled.
Yea right, perhaps the amount of time these real estate agents have available now is spent trying to convince Garth's followers that things aren't changing.

*You might want to spend more time on Linkedin and find something worthwhile to pay those 4 mortgages. I believe that part of your story.*"
………………….

Whatever. I am not now, nor have I ever been, a RE agent. Not married to one, not related to one.

You keep talking about what OTHERS have TOLD you about their experience with mortgages and banks over the last few years. I have LIVED it first-hand.

I'm a 50+, former SAH mother (and recent empty-nester), with a blue collar husband. Before staying home with kids for 22 years, I worked as a bookkeeper or accounting clerk. For 5 years I've also been a landlord.

I WISH I sold RE. If I did, I wouldn't have had to pay commission on 4 purchases, or the sale of our personal residence June 1. Besides, if I had a job, we would have bought the newer, $300,000+ house down the road on Lake Superior, instead of the $150,000, 1970s bungalow on Lake Superior (that we gutted ourselves, and renovated). Or not. I'm cheap like that.

Sunset over the water from our house looks the same, though, as the $300,000+ house. Loons sound the same, too. Can you hear the waves? Or are you too busy being bitter and calling people liars? I'm sure Garth could verify my location for you based on my IP address.

I have used the same Scotia branch, and the same loans officer since 2003, for all mortgages. The posted rate qualification, and information and documentation required of us has not changed since 2003, except for the addition of rental lease copies for additional income verification. THIS despite they can clearly see EXACTLY what rent I accept each month by etransfer into the rental bank account, and my husband's direct deposit pay. As a matter of fact, one tenant's initial lease term was up, but was still a tenant (month to month under Ontario law), and had to supply us with a letter stating he was STILL a tenant with the same rent amount. Bank would not accept a lease where the locked-in period had expired. 2014. Word.

#55 Fish on 07.29.17 at 9:11 pm

Doug, cbc TV wedding dresses and 30k soc away for retirement, nice real nice

#56 MF on 07.29.17 at 9:11 pm

Didn’t read. Couldn’t get passed the picture today. Sorry.

….

MF

#57 ancodia on 07.29.17 at 9:20 pm

#48 Sir James on 07.29.17 at 8:34 pm

Welland inventory and prices climbing, lots of OK house still under $200K. Lots of saws buzzing and hammers pounding away at the renos.

Given the high unemployment in the region they are probably the only people working. Good thing credit is still cheap .. for now ..

#58 Howard on 07.29.17 at 9:26 pm

#49 Tony on 07.29.17 at 8:35 pm
Re: #37 Howard on 07.29.17 at 7:24 pm

Yes unimaginably overvalued and the silver stocks are much more overvalued than the gold stocks relative to the spot price of silver. Suffice it to say the odds are near 100 percent that physical gold and physical silver will outperform the gold and silver shares over the long term.

—————————–

I see. So gold and silver will do well (according to you) but miners, some already down 95%, will not. Interesting buy-high/sell-low strategy you have there. And 100% odds, goodness.

#59 For those about to flop... on 07.29.17 at 9:32 pm

Robax, I didn’t understand one word of your post, but luckily for me Dr Hook dropped by and was able to explain it to me…

M43BC

https://m.youtube.com/watch?v=-Ux3-a9RE1Q

#60 Lee on 07.29.17 at 9:56 pm

#43AK,

JT will win in 2019. Too much support in Ontario and Quebec and he goes 33-0 in the Maritimes and the three territories. There is also the Bloc in Quebec blocking the Cs. Maybe Trudeau wins minority if Cs can win 20 more seats in Ontario. Rising economy will drown out his other gaffs.

#61 Al on 07.29.17 at 9:59 pm

Boom!

I agree. Canada Rox. Our banks have the best balance sheets and best operating and profitability ratios of any in the world.

Doug , I like your posts. Your a solid guy and funny too.

Also likes how u told that one Doug Rowan imposter to stfu like a boss.

Good stuff !

#62 espressobob on 07.29.17 at 10:02 pm

Commodity plays based on the Eric Sprott mentality are nothing more than concentration plays leaving the naïve in a world of hurt.

Not a good space to be in.

#63 Lonely in Montreal on 07.29.17 at 10:04 pm

Something doesn’t add up: The Canadian economy is going gangbusters, but we are hugely overleveraged and our housing market is crashing…how long can the fun last??

#64 Troy on 07.29.17 at 10:28 pm

Hey……where is point number 3??????

I like the post……but I don’t wanna get ripped off either.

#65 Doug on 07.29.17 at 10:29 pm

Powerful rebuttal .

Better to quit when you have none .

#66 crowdedelevatorfartz on 07.29.17 at 10:49 pm

@#63 Lonely Montrealer
“we are hugely overleveraged and our housing market is crashing…how long can the fun last??”
********
When our Prime Minister Justin Trudeau is sporting a man bun on the front page of the Globe and Mail…….run screaming for the exit…….

#67 acdel on 07.29.17 at 11:17 pm

Hey all you Alberta haters; looks like the resilient bunch is turning a corner.

http://calgaryherald.com/business/local-business/alberta-passes-b-c-to-reclaim-lead-in-canadian-growth-survey

#68 GenXBorderline on 07.29.17 at 11:22 pm

The tie on his overshirt, pointing suggestively to something bulging underneath…. I really hate the guy, particularly as an ‘American’ abiding in Canada for decades. Wondering if the HRT is worth all the tension…I mean he is repulsive…sort of….

#69 GenXBorderline on 07.29.17 at 11:29 pm

Hate was a strong word. I don’t hate him. I don’t know who he is. I just know that he betrayed me, as someone who has been Canadian since the day I was born to my Canadian parents, yet treated by our current Liberal government like a foreigner simply because I was born on US soil. Shame on me for commenting on our elected Prime Minister of Canada with regard’s to his sex appeal, but frankly I have no other use for him.

#70 Rexx Rock on 07.29.17 at 11:32 pm

Its funny T1 was the ugliest PM and T2 is the best looking to date.How ironic.Both are idiots and now T2 is carry on the legacy of destroying Canada.Good times are coming.

#71 GenXBorderline on 07.29.17 at 11:32 pm

ooops….regard not regard’s

tie got me excited

#72 Oft deleted much maligned never politically correct....insensitive to BS whine....stock picker on 07.29.17 at 11:58 pm

Trudeau is just paid for advertising…..anyone who doesn’t get that is woefully……dumb. Media is a business. The sycophants buy space in magazines etc and without a disclaimer a lot of people think Edgar R Morrow us still at the helm of an honest ship called….Journalism……it’s not that way folks. Since the Great Recession and leaps in internet ad space traditional media is scraping the bottom of the barrel for revenue. Once good reporters are now writing fluff pieces for real estate developers and happy to have the work. Tremendous amounts of foreign money…especially out of the Democratic Wing in the US is using Canada as a foil against Trump……our political capital is for sale….bottom line.

Investing in Canada…..index investing has sucked…..while individual companies have soared….so….great to be a stock picker….sucks to be an index investor. Just about every bank and Telecom has doubled over the last few years…..fish…..barrel….ka ching. Great issues like CP have gone from $80 range to over $200…..Gib.a from $15 to $60’s…..anything with a good div has trebled as return hungry investors flooded in…..the time to buy was three years ago…..now it’s just a cruise…looking for great companies advancing smartly….and finding them…..you name it…..there have been a lot of individual four to ten baggers on the stodgy and much maligned TSX over the past few years.

#73 YVR - 60% crash on 07.30.17 at 12:37 am

The picture on today’s article give me a diarrhea otherwise your article is useful as always Doug.

#74 Mark on 07.30.17 at 4:03 am

The other day, Investorsfriend posted a link to Canadian rail traffic, and argued (paraphrased), that the Canadian economy was back on track (literally), producing large amounts of goods and services.

And in the strictest sense, yes, Canada’s economy is back to 2014 levels in terms of rail shipments. Rail shipments which presumably arise from production in various industries such as resources and manufacturing.

However, is this actually ‘growth’? If your house goes down 50% in the upcoming market crash, it takes a 100% return to even reach ‘even’. Not many homeowners will have reason to celebrate after a 50% crash unless they achieve at least a subsequent 100% return. Many will find themselves so scarred by the experience of such volatility that they’ll never take out a mortgage loan again.

The same problem arises with Garth’s comment with respect to someone who wrote that the TSX has been a terrible investment for the past 9 years, only returning dividends. He stated, again paraphrased, that the TSX had a double digit return last year. But that was coming off of a serious slump in years prior. TSX investors hardly have any reason to celebrate the past decade, as, quite uncommonly, a 10-year GoC zero coupon bond bought a decade prior and held to maturity actually outperformed. When you incorporate the inflation rate (1.54% annually in the past decade), and typical management fees/performance lag, TSX investors have done nothing other than preserve their principal in real terms.

The stock market is also forward looking to some extent. Industrial production, per Investorsfriend’s link, certainly can return to 2014 levels, but firms have to hire exceptionally few technical staff to accomplish this. Hence, the comatose IT and engineering employment environment that exists in Canada. If production is to expand beyond, for instance, those 2014 levels, then hiring, particularly of engineering and tech professionals, would have to accelerate. There is little to no evidence of this happening. When there is evidence of this happening, it might be time to jump on the train of believing that Canada is about to witness a meaningful and sustainable economic expansion beyond just what we’ve mostly observed recently in, short and medium term cyclicality.

#75 Mark on 07.30.17 at 4:15 am

further to my previous comments: Does this make Canada a ‘bad’ investment? Certainly not. If economic growth isn’t sustainable, and production doesn’t expand beyond current levels, the TSX still has an after-tax earnings yield in excess of 5% (probably closer to 7% once you adjust the earnings slump of last year out and use more updated ‘current’ numbers). Considering that individuals can obtain after-tax money at rates approaching 1% these days, theoretically the TSX could go up by 700% before an investment in with debt no longer is accretive. Contrast this with cash-flow negative real estate (LOL!) that is commonly and owned on a widespread basis, particularly in the GVR/GTA, and a TSX investor could do incredibly well.

That’s not to say that the TSX is on its way to 100,000 anytime soon, my own personal modelling indicates that an index level in excess of 50,000 is certainly a possibility in 2024. TSX = 50,000, 3-4% BoC rates (on the strength of a strong enough economy), and some actual much needed wage growth outside of the public sector and FIRE sectors. Unlike the 1990s, where the precious metals sector went into a depression, acting as a headwind against TSE growth, this time around I expect such sector to outperform. Perhaps quite substantially. There’s literally no other sector on the stock market you can buy today that’s priced at the same nominal levels as it was in 1984!!!

#76 A Reply to #72 stock picker on 07.30.17 at 6:46 am

His name was Edward R. Murrow (not Edgar R. Morrow), arguably the greatest broadcast journalist who ever lived. Show some respect by spelling the man’s name right! Sheesh!

#77 Howard on 07.30.17 at 6:47 am

#70 Rexx Rock on 07.29.17 at 11:32 pm
Its funny T1 was the ugliest PM and T2 is the best looking to date.How ironic.Both are idiots and now T2 is carry on the legacy of destroying Canada.Good times are coming.

—————————————–

You mention T1’s ugliness. Indeed he looked like a cross between Austin Powers and Count Dracula.

Recently, the CIA declassified some documents from the 70s and within it there’s a mention of how odd it is that the Liberal Party is holding up the repulsive Pierre Trudeau as some sort of playboy. Really speaks to the shallowness and stupidity of the party’s base.

It’s mentioned here: http://nationalpost.com/news/canada/beware-of-canadian-sensitivity-declassified-documents-reveal-what-the-cia-really-thinks-about-us/wcm/6af6ca63-a85c-4387-be8e-6f12bbb7fe4f

Re: T2 being the most handsome, might have something to do with the fact that he’s (a) the youngest PM in history and (b) has led a stress-free life.

#78 A Reply to #34 Sydneysider on 07.30.17 at 8:40 am

“So, it takes $2 of borrowing by Canadians to produce $1 increase in economic activity as captured by GNP. It ought to be the other way around.”

The link attached to your comment refers to the money multiplier (which has nothing to do with the above quote). For greater clarity, the above quote does not refer to a multiplier.
https://en.m.wikipedia.org/wiki/Multiplier_(economics)
https://en.m.wikipedia.org/wiki/Money_multiplier
https://en.m.wikipedia.org/wiki/Fiscal_multiplier
https://en.m.wikipedia.org/wiki/Transfer_payments_multiplier
https://en.m.wikipedia.org/wiki/Multiplier-accelerator_model
https://en.m.wikipedia.org/wiki/Complex_multiplier

Debt is not money, nor is it part of the money supply.
https://en.m.wikipedia.org/wiki/Debt
https://en.m.wikipedia.org/wiki/Money
https://en.m.wikipedia.org/wiki/Monetary_base
https://en.m.wikipedia.org/wiki/Money_supply

Flopster and M—F—, don’t confuse erudition with pedantry! :)

#79 Doug Rowat on 07.30.17 at 8:40 am

#63 Lonely in Montreal on 07.29.17 at 10:04 pm

Something doesn’t add up: The Canadian economy is going gangbusters, but we are hugely overleveraged…

Agreed. Dismissing every risk is what salesmen do. No market is ever perfect. We have to look at the balance of risks and rewards, hold our nose and then make a decision. Lucky for us this blog isn’t a public record and no one would ever remind us of our mistakes.

–Doug

#80 Arctic Gringo: Qalunaaq on 07.30.17 at 9:20 am

Re: #60, Lee

In 2019, there will be zero, yes zero, strong Liberal candidates for Nunavut. So far, Senator Dennis Paterson has acted more like an MP than the former Minister, now back-bencher Hunter Tootoo, as he has stayed on the slide lines since his actions in Winnipeg during the early months of this Liberal regime. People DID NOT particularly like that he withheld the real truth behind his resignation.

The revolving door of Liberal MP candidates for Nunavut will most likely continue – Jack Anawak or Paul Okalik. Jack is more human than Paul, but Paul’s voice (vindicated for directing the word “b7tch” to a female at a public event) may be too strong for a 50/50 gender cabinet representation.

Nunavut hated Harper, but tolerated Leona Aglukaq more-or-less because she did bring some good things to her constituents.

Unless new Liberal blood appears in Nunavut (possibly Jerry Natannie riding the coattails of the recent National Energy Board ruling), that could mean one less Liberal seat in 2019.

-AG:Q

#81 Shawn on 07.30.17 at 9:42 am

The TSX began a new cyclical bull market in Feb 2016 along with the vast majority of other global markets. The chart looks very similar to 1984 – expect a big move higher over the next 3 years.

However, USD is significantly oversold ($CAD overbought) – $CAD could decline

The S&P500 is currently a contrarian long relative to other global markets.

Best to just buy the S&P500 (VFV in $CAD) and/or Nasdaq (QQQ).

It’s unlikely we see significant EM or TSX outperformance similar to the commodity bubble if 2002-2011. It’s time to move on.

Why take a chance?

#82 TurnerNation on 07.30.17 at 9:43 am

Toronto’s changed. Follow the money. Early in week was on a King St. West patio.
Ferrari parked nearby. In span of 1 hr three more Ferrari’s, a Lambo and a large AMG trimmed coupe with a barking exhaust note motored by.
These mainly are driven by young local guys.
No idea source of funds.

(No more Drive your Chevy to the levee stuff here.)
Great exhaust notes. Boomers will remember hot cams in V8s which would burble and pop their discontent at being asked to idle or spool down.
Today’s rides seems to imitate the same using variable valve timing trickery .

#83 Shawn on 07.30.17 at 9:54 am

Investors need to realize that we are in the early stages of an echo technology boom secondary to the 1st tech boom from 1974-2000. This next cycle will likely continue until the 2030s and perhaps beyond.

The S&P500 has a 22% technology weighing. The Nasdaq is the dominant technology index.

The TSX has a 2.7% technology weighing.

Buying the TSX means you’re going long:

50% banks & financials (at the beginning of the most significant housing deleveraging in Canada to date)

20% oil and gas (oversold but not a leading sector or industry)

10% materials & mining (oversold but not a leading sector or industry).

Using a capped ETF is even worse because you won’t benefit from the outlier Canadian tech company that pulls the entire index while other sectors drag on it.

The dividend tax credit is the only reason why investors buy Canadian ETFs. All it takes is a small legislative change for this benefit to disappear.

A global ETF has enough Canadian exposure. No need to overweight beyond that.

#84 maxx on 07.30.17 at 10:02 am

#25 Doghouse Dweller on 07.29.17 at 6:14 pm

“So how did these Franco financial engineers make a fist full of cash
while the Bay Street Anglos went broke ?”

In much the same way that its power generation was handled? Long-range vision underpinned by dogged determination.

Kinda like saving and investing – exactly like saving and investing.

Shines like a diamond.

#85 Millennial Realist on 07.30.17 at 10:19 am

You ancient Boomers are so unaware of the change that is coming at us like a freight train on steroids.

Bashing T2?

Good luck with that.

The last 40 years of Boomer excess, the increasing gap between rich and poor is about to come to an end. Brutally.

Enjoy your little distraction, picking on Justin’s looks and charm.

(Do you even remember how your guy, Harper, wore lipstick and mascara? LOLOL!)

As ye sow, so shall ye reap.

Get ready for mega change, Boomers.

Or get ready to be run over by it.

#86 Yuus bin Haad on 07.30.17 at 10:33 am

So, I Google “jump the shark” and up pops a cover of the Rolling Stone.

#87 For those about to flop... on 07.30.17 at 10:37 am

A reply to #72 stock picker on 07.30.17 at 6:46 am
His name was Edward R. Murrow (not Edgar R. Morrow), arguably the greatest broadcast journalist who ever lived. Show some respect by spelling the man’s name right! Sheesh!

#78
Flopster and M—F—, don’t confuse erudition with pedantry! :)

//////////////////////////////

Do whatever you want ,but you could endear yourself to a few more of us a bit more if you did your business with slightly more warmth.

If I was going to bother with correcting Stock Picker for example, in my style I might have written something like this…

“.Hey Stock picker, I think you’ll find the guys name was Edward instead of Edgar.In my estimation he was the finest broadcast journalist that ever lived .”

Or something like that.

Just show your wisdom with a bit more character and warmth and leave it alone if you are pretty sure that autocorrect or whatever interfered.

I have written over 5000 posts on here ,many trying to help people see what is going on with Vancouver real estate and I bet over 95% of them have some form of written mistake in them ,but I don’t fret as long as the fine folk on here can understand what I’m getting at most of the time.

At the very least show me your GAP Code or something.

I’m not saying you have to embarrass yourself on here daily like I do for the greater good,but at the moment you come across like Mark’s Mum.

At the moment you are showing the personality of a fence post…

M43BC

#88 xic on 07.30.17 at 10:42 am

a capped etf;
ytd- +.45
10 yr- + 3.76

i get passive investing, historically a money manager has the odds stacked against him. Studies show us this. With Doug and Garth, they don’t choose stocks. Only hope to come close to a comparable index is with timely asset allocation choices. Add the 1% management fee and odds are nearly out the window. Unless you have data to share otherwise , Doug?

however, NOT all money managers are equal. Certain firms time and time again beat the index. No need to post them , its out there for public viewing….including sharp ratio/beta/alpha.

#89 Ret on 07.30.17 at 11:14 am

#74 “The other day, Investorsfriend posted a link to Canadian rail traffic, and argued (paraphrased), that the Canadian economy was back on track (literally), producing large amounts of goods and services.”
—————————————————————–
Our Blog Dog, Deep Throat source inside National Steel Car in Hamilton reports that a third shift is being talked about and maybe starting soon. Their yard is loaded with bright blue K+S Potash painted rail stock awaiting delivery.

Not frenetic, but steady orders on the books. NSC is one of the few survivors on Nikola Tesla Blvd., formerly Burlington Street.

#90 For those about to flop... on 07.30.17 at 11:28 am

To the above post ,I will probably embarrass myself a bit more by admitting to my formal education qualifications on here since people were arguing about degrees and diplomas the other day.

Perhaps one of the people you wrote to called me a Simpleton the other day.

I did not waste my time arguing this point as the poster was perhaps correct, I only argued that I could pronounce a certain persons name.

I graduated high school at the age of 15 and a few months later while all my high school buddies went to college( grade 11/12 where I come from)I started an apprenticeship and four years later was at the age of 19 was handed a trade certificate.

Probably to this day perhaps one of the youngest persons in Tasmania to have bothered doing this.

The rest of what I know was learnt from the street.

Also there is perhaps a few other facts that I might as well spill about myself as well being confessional Sunday and all.

I got my real estate fastination over and done with earlier than most people on here I would imagine.

By the time I left high school I had 10k AUD in the bank.

From the age of about 10 I had a paper round befor school and after school I delivered medicine for a pharmacy to old people on my bmx for few years which I think paid 20 bucks a week in the mid eighties and later on I got an after school job at a concrete company, sweeping the yard and stocking stuff for 50 bucks a week.

Which brings me back to real estate, by the time I was eighteen or nineteen,my parents said they were moving to the other side of the city.

I did not want to move as all my childhood friends lived within a few blocks.

I had a 35k down payment by then and I bought my childhood home from my parents for roughly 55k ,not really a discount as real estate is relatively dirt cheap there.
I sold it 5 or 6 years later for roughly 70k just before thinks took of a little bit.

It was a long time ago but I think it only took another 2 or so years to pay off the mortgage.

I was earning 22/23 bucks and hour way back then so it was a piece of cake and all these years later I don’t earn much more than that.

I do t recall how long but for a while I was also being paid $200 a week as a semi professional footballer.

I am estranged from my parents but a little birdie told me that my parents who bought that their new house all them years ago for 100k just recently sold it for 300k and downsized and bought a condo on the Gold Coast despite living in it for 20 years and doing some amazing renovation work even blowing up rocks to level out the back yard.

I don’t even think they would have broke even after expenses even though it went up 100k a decade.

I hope they will be alright for retirement, but I don’t know.

They definitely can’t blame me brother and I if they don’t as they were empty nesters before their 40th birthdays

My mum had my brother one day before her 18th birthday.

I came out 20 months later and that was the end of that.
Apparently I have always been stubborn and resilient as I spent the first three months in hospital fighting for my life.

I am still here 43 years later, making lots of mistakes as I go.

The one lesson I would like to pass on to the young and impressionable on here is buying and owning real estate does not make you a better person.

All your troubles do not suddenly go away,and in a lot of cases can be the start of trouble.

As the boss of this blog has stated, buy real estate when the numbers work for you and if it is your life’s desire move to where it does and a lot of other things might not be as scary as you think they will be.

Right now in Australia they have a lot of the same things going on as here but somebody is living in my parents old 4 spilt level ,beautifully landscaped yard overlooking a river for 300k not a thing to be done except hang a few pictures.

I will perhaps buy again one day, but only if and when it makes sense…

M43BC

#91 Growth from reduced base on 07.30.17 at 11:48 am

#74 Mark
However, is this actually ‘growth’? If your house goes down 50% in the upcoming market crash, it takes a 100% return to even reach ‘even’.

Sure.
Then again, if something goes down 2.00% it takes a mere 2.04% growth to reach even.
So don’t exaggerate this effect at smaller growth levels please.

Also: I doubt there will be a -50% in nominal terms. Maybe a -50% in real terms if inflation really gets going at some point, though. But that will take a while to materialize.

#92 Doug Rowat on 07.30.17 at 11:54 am

#82 Shawn on 07.30.17 at 9:54 am

The dividend tax credit is the only reason why investors buy Canadian ETFs.

Ironically, you detail all the other reasons why an investor might want to buy a Canadian ETF: a favourable view of our banks and financials or a favourable view of commodities.

Yep, no technology, but that’s why the other two thirds of our equity exposure is US and international.

–Doug

#93 LS in Arbutus on 07.30.17 at 12:09 pm

2796 W 21st

https://tinyurl.com/y96toow3

Bought $2.598 June 2016
Asking $2.999
Assessed $2.637

FLOP, this is a loss in the making.

#94 A Reply to #86 Flopster on 07.30.17 at 12:26 pm

Are you referring to the self-styled “Oft deleted much maligned never politically correct….insensitive to BS whine….stock picker”? Are you kidding me, Flopster?

You know, Flopster, when you’re right, you’re right! Educating these deplorables is like draining the ocean, one teaspoon at a time!

From now on, I’ll just read the blog, and ignore the comments! Happy now? :)

#95 joblo on 07.30.17 at 12:30 pm

Doug in his youth?

https://youtu.be/hashPaU7Dpk

#96 Lee on 07.30.17 at 12:48 pm

#80 Arctic Gringo,

Yes, I heard he was possibly going to lose Nanuvut, but he’ll still take 29/29 in the Maritimes. He’s got a 15 seat majority and it’ll be hard to lose that.

#97 Smoking Man on 07.30.17 at 1:09 pm

This getting serious.

I was curious to see what I was tweeting about last night. Seams I did a live broadcast on periscope that I have zero recollection of doing. But it’s me.

Perhaps the next book should be about a board code smith who inveted an online ulter ego Character only discover years later the character took over his body and mind.

Human beings are completed is my conclusion.

#98 Shawn on 07.30.17 at 1:14 pm

The reason the TSX has lagged EMs so dramatically recently is its complete lack of technology exposure.

#99 For those about to flop... on 07.30.17 at 1:29 pm

Pink Lemonade stand in Surrey.

These guys thought that it was a good decision to drop 2.22 million on this 22 year old house in Surrey in Feb 2016.

The assessment is not a problem,but if people choose to they can get a newer house for less in some parts of Vancouver proper.

A big haircut to get some action, but they might be up Morgan Creek without a paddle…

M43BC

16133 Morgan Creek Crescent, Surrey

Jul 1:$2,588,000
Jul 26: $2,199,000
Change: 389,000. 15%

https://www.zolo.ca/index.php?sarea=16133%20Morgan%20Creek%20Crescent,%20Surrey&filter=1

https://evaluebc.bcassessment.ca/property.aspx?_oa=QTAwMDA3NllQWQ==

#100 WUL on 07.30.17 at 1:41 pm

#84 Millennial Realist on 07.30.17 at 10:19 am

wrinklewrinklewrinkle…

This Boomer (1956) tends to agree with you and in the inter-generational fracas that is brewing, I am firmly on the side of the youngsters (what with a 23 year old and 22 year old child). While not uniformly so, of course, my cohort has more than it share of selfish, money grubbing greedheads deserving of contempt and disdain. See you at the barricades.

Also, I have said it before and will say it again although it is likely to fall on deaf ears. So many ridicule T2’s education and career experience before his entry into federal politics. Yet he stacks up as at least the equivalent or the better to Andrew Scheer, the glam boy of many here. Scheer brings with him a B.A., and an insignificant and minor stint as an insurance agent in Regina before becoming a career politician at the age of 26.

With their words, they ridicule both. Probably undeserved in both cases.

#101 For those about to flop... on 07.30.17 at 1:43 pm

Pink Lemonade stand in Burnaby.

As soon as I saw the street name ,I thought please be a recent buy and it duly delivered.

This case goes perfect with today’s picture as these guys spent 1.4 on this place in January 2016 and the assessment came in slightly lower.

Once a year the people in Trudy Crt and Harper Crt have a big pillow fight in the cul-de-sac.

The people in Trudy Crt worry about their hair, while the people from Harper Crt don’t worry about such things as they have built in helmets…

7192 Trudy Court, Burnaby

Mar 15:$1,790,000
Jul 26: $1,555,000
Change: – 235000.00 -13%

https://www.zolo.ca/index.php?sarea=7192%20Trudy%20Court,%20Burnaby&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAzVlFKRg==

#102 For those about to flop... on 07.30.17 at 1:55 pm

Flopster on 07.30.17 at 12:26 pm
Are you referring to the self-styled “Oft deleted much maligned never politically correct….insensitive to BS whine….stock picker”? Are you kidding me, Flopster?

You know, Flopster, when you’re right, you’re right! Educating these deplorables is like draining the ocean, one teaspoon at a time!

From now on, I’ll just read the blog, and ignore the comments! Happy now? :)

////////////////////////

I tried to get you to be a bit more warm and personable,not try and shove the South Pole up my backside…

M43BC

#103 jess on 07.30.17 at 1:56 pm

concentration
Today’s monopolies are yesterday’s startups
Published on May 11, 2017

review.chicagobooth.edu | Competition is the essence of a capitalist economy, says Chicago Booth’s Luigi Zingales. But he cautions that in the United States, industry concentration is growing, and an increasing number of academics are concerned about the ramifications. Companies such as Google, which benefited early on from antitrust enforcement against Microsoft, are now themselves corporate powers, exerting enormous influence over regulators. This, he cautions, could have consequences.
https://www.youtube.com/watch?v=O4yONaEK4G0

———————————-
Promarket
The blog of the Stigler Center at the University of Chicago Booth School of Business

https://promarket.org/stigler-center-talk-deutsche-bank-whistleblower-sec-revolving-doors/

#104 For those about to flop... on 07.30.17 at 2:08 pm

Pink Lemonade stand in Vancouver.

This one is really a Possible Pinkie at the moment but since my blog buddy LS is on the prowl I will do them justice and put it on file.

2796 w 21st Ave Vancouver was picked up for 2.59 in June 2016 and being a 40s build there is a good chance at some stage that it ends up with Orange Death Mesh wrapped around it.

Located on a busy street,I have no doubt driven by this house on the way to work countless times and that particular part of the Westside is definitely not that high end.

You never know I could end up working on the replacement…

M43BC

https://www.zolo.ca/index.php?sarea=2796%20W%2021st%20Avenue,%20Vancouver&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwME1LMg==

#105 Howard on 07.30.17 at 5:24 pm

#85 Millennial Realist on 07.30.17 at 10:19 am

Right, freight-train change. You mean like Occupy Wall Street? That thing fizzled almost as soon as it got off the ground.

I’m no Boomer. 37. I think T2 is the most unqualified, least intelligent PM in Canadian history. But he is a puppet. The real players are Gerald Butts and associated leftist hacks that turn his head.

In case you haven’t noticed, your beloved T2 wants to swing the doors open to more TFWs that will compete directly with YOU and your friends and bring your wages way down. This is exactly what the oligarchs and billionaire globalists want. And you voted for it.

If you have any friends in your age group who are doctors or med students, cherish this time with them because they’ll be headed south before long.

#106 acdel on 07.30.17 at 8:57 pm

#85 Millennial Realist

Ha, be prepared to pay dearly for your “Rolling Stone” idol, this is just too easy! These guys like Millennial just do not get it! Good-luck!!

#107 M on 07.31.17 at 12:55 pm

Laughable.
This post should be re-read in 3 months.
Unfortunately it won’t be possible to be re-written.

#108 AGuyInVancouver on 07.31.17 at 3:56 pm

#70 Rexx Rock on 07.29.17 at 11:32 pm
Its funny T1 was the ugliest PM and T2 is the best looking to date.How ironic.Both are idiots and now T2 is carry on the legacy of destroying Canada.Good times are coming.
__________________
Yeah, G7 leading growth, that Justin is ruining us alright. Where’s the rolleyes emoticon. I’m surprised at the selfcontrolof posters that only lead to about a hundred posts of vitriol.

Newsflash: it is not the PM’s job to be the smartest guy in the room or the Minister of Everything. It is the PM’s job to represent the values and brand of the party, and set the tone of government. Justin has succeeded pretty well there. The Party of Dour (aka Conservatives) could do well to take some lessons.

#109 espressobob on 07.31.17 at 7:19 pm

Dear Doug,

You dropped the ball on this one. With all your experience and knowledge base, your A game is better suited next time.

Bring it on!