Mark of the beast

On Friday the Dow shed 666 points. Mark of the Beast. Scary.

If the futures markets are right, there’s another one coming on Monday. So should you be worried?

Well, go right ahead if you think short-term movements foretell the future. But otherwise, this is all pretty predictable and routine. We’ve told you a few times to expect a correction. This might be it. That would peel 10-15% from the Big Board, or something like 3,000 points – taking it back to where it was in the middle of 2017. After all, a pullback’s overdue.

First, before anything else, let’s recap Friday. The stock markets lost 2.5%. Headline writers had a cow. And a balanced portfolio shed 0.8%. Yawn.

Now the context: In January the market gained close to 6%, the most in 21 years. In 2017 it soared 25%. Last year a boring balanced and diversified portfolio made about 11%. The S&P 500 (a broader measure of US equities) has risen for 15 months. It had been 404 days up to Friday before any significant (3% or more) selloff had occurred. That was the best showing in 90 years.

So is it all going to unwind?

That makes no sense. In fact the reason stocks are going down is because the American and global economies are going up. That growth brings inflation, higher incomes, wage demands, rising prices, swelling interest rates and popping bond yields. Stock investors dislike a lot of this because increased salaries and higher borrowing rates mean (a) corporations face increased costs and (b) suddenly the yield on bonds competes with the returns on stocks, so money flows there.

But at the same time, more expansion means companies can expect greater long-term growth; corporate profits remain extremely robust; and the giant US corporate tax cut has not even yet started to plumb bottom-line returns. In short, what happened Friday (and which seems likely to carry on a for a short while) is a classic risk-off thing. A technical correction. A healthy blowing-off of excess froth and investor euphoria. Deflating. Like the way guys feel when their prime minister says he “self-identifies as a feminist.”

Speaking of macho, testo-driven, suspender-snappers, here’s what portfolio manager and part-time Ryan had to say when I dragged him away from watching the Super Bowl on Sunday in the garage suite as he waxed his Lambo. No, the yellow one.

“We were way overdue for a pullback with the markets not experiencing even a 3% pullback since Brexit in mid-2016. The reason for the pullback is that investors are now pricing in more inflation and central bank tightening. This has caused the US 10-year to spike to nearly 3%. Bond yields are now very overbought and I see the 10-year being capped this year around 3.50%, so a good part of the run in bond yields is now priced in.” He paused to light another Havana with a crisp bill.

“But the reason this is happening is that the global economy and corporate profits remain very strong. We’re late in the cycle but I believe it can continue this year as the economy continues to accelerate. Nothing has changed over the last month with the economy and corporate profit outlook remaining bright so I think this is just a well overdue pullback.”

And what are the technical indicators telling my chartist buddy?

“They remain bullish” he said, texting his trophy wife to bring down more Swarovski. “Markets are still in clear uptrends and above the rising 200-day moving averages. Since we’re in the 9th year of this cycle and central banks are starting to tighten we need to remain vigilant and monitor conditions closely but for right now things still look good to me.”

There you go. Stocks got ahead of themselves. Inflation came back. Job creation surged. Wages expanded. Bond yields and rates jumped. Money moved. As one small Wall Street dude summarized on the weekend: “It’s kind of a strange time and we seem to be driven by a fear of what everyone wants, and that’s higher rates. Higher rates confirm a stronger economy, and the market was very afraid of that all week long. And that’s been a big reason for selling.”

Naturally, a stronger economy (global growth is expected to surge by 30% this year) inevitably means more wealth creation. Companies profit. Dividends increase. Investors gain. More people work. Incomes rise. Corporate revenues are expanding these days four times faster than at any time in the last six years. It all confirms the obvious – a continued bull trend.

That would suggest this is a healthy correction. No reason to sell. Perhaps reason to buy. If you have a properly balanced and diversified portfolio, just snooze right through it. Your investments will be just fine.

Wish I could say the same for your house.

191 comments ↓

#1 JohnnyJ on 02.04.18 at 2:56 pm

First!

#2 Buddy on 02.04.18 at 2:59 pm

If investors are moving out of equities into bonds – why are bond prices down and yields up? Shouldn’t bonds go up when equities go down? Can we expect bond yield to go down now that we finally touched this magical 3% milestone?

#3 Andrewski on 02.04.18 at 3:01 pm

Unfortunately if Ryan uses a crisp bill to light his Havana, the synthetic polymer will foul the taste.

#4 Buddy on 02.04.18 at 3:03 pm

And secondly, do the jobs reports consider how many people left employment when they say “XXXXXX amount of jobs gained this month?” How many jobs are getting sapped from the market due to retirement, technology, debt, global restructuring??

#5 Looney Baloney on 02.04.18 at 3:07 pm

So the marxist cucks in charge just passed a motion to neuter our national anthem. No consultation as usual. Just slip it under the radar asap, buy media silence, then derail post bill conversations by attacking and labelling anyone in opposition as a sexist pig.

Time for Canucks to grow some balls and elect someone who will drain the swamp of liberal swine that has infested the highest echelons of our once great nation.

In other news, BTFD.

#6 paulo on 02.04.18 at 3:07 pm

Steady as she goes: take of advantage of good discounts on instruments that fit your hopefully balanced portfolio!
not all days are sunny,good sailors batten the hatches and ride out the storm,and storms do happen. keep your eye on the horizon a your goals,never sell into a storm.

#7 InvestorsFriend on 02.04.18 at 3:09 pm

Pompous twit?

Yesterday LivinLarge called me a Pompous Twit.

When I responded “We are amused” he failed to get the joke despite me putting the word “We” in quotes at the start of my response.

Then he accuses me of promoting my own business. I think he is the only one who has been calling attention to that.

Then he says that I use multiple screen names. Yes, that would be two screen names in ten years, one being my full name the other the one I use here.

If Garth has any problem with me using the name InvestorsFriend, I will go back to using my name, Shawn Allen.

LivinLarge is a Johnny-come-lately to this site and is gaining a certain reputation here.

I come here for the discussion and feedback and I believe I have some knowledge to pass along. But anyone is free to scroll past my comments.

#8 leedium on 02.04.18 at 3:09 pm

first!!!

#9 Frenchy in the forest on 02.04.18 at 3:11 pm

Awsome read!
In Garth we trust

#10 OOFY on 02.04.18 at 3:12 pm

Soon will be perfect time to grab some nice cheap ETF s

#11 Smoking Man on 02.04.18 at 3:13 pm

Expect a huge rebound in the morning. No reason for the market to be selling off. The effects of lowering of personal and coporate taxes hasen’t even hit the engine yet.

#12 Post on 02.04.18 at 3:16 pm

Been a reader since 2008/2009. Garth always seemed to have recommendations for buying or selling something financial – like currencies or preferred ETFs. But I haven’t read any of these lately – how come?

Is EVERYTHING expensive, are there no veritable bargains, no obvious sure things??

#13 YK on 02.04.18 at 3:19 pm

First?

#14 akashic record on 02.04.18 at 3:28 pm

Is “healthy correction” and “sick growth” the two sides of the same coin?

#15 conan on 02.04.18 at 3:32 pm

Going out on a limb here:

I think I am going to wait for Dow 20 K and then take a look-see.

If I sense, good times, I will shift some money in. I am not married to that though. It is not just the indexes, there is also a currency play happening.

These are difficult investment times. It is not cookie cutter easy anymore.

Was a time when Bozo the Clown could sell a house in Toronto. Now, people will pay for top notch RE sales talent.

The time of investments always going up is now over. The pendulum will swing back to managed funds coming back into favor.

#16 TheDood on 02.04.18 at 3:39 pm

Homework done (reading this blog).

Time to settle in and watch the Eagles beat the Patriots!

#17 Butcher on 02.04.18 at 3:42 pm

Fly Eagles Fly!

#18 To the moon on 02.04.18 at 3:44 pm

Nonetheless, there remain important downside
risks. Disorderly financial market movements,
such as an abrupt tightening of global financing
conditions or a sudden rise in financial market
volatility, could trigger financial turbulence and
potentially derail the expansion. The adverse
effects of rising borrowing costs could be
particularly acute for those EMDEs with large
external financing needs, fragile corporate balance
sheets, and significant fiscal sustainability gaps. In
addition, escalating trade protectionism or rising
geopolitical risk could also negatively affect
confidence, trade, and overall economic activity.
Over the longer term, a more pronounced
slowdown in potential output growth in both
advanced economies and EMDEs would make the
global economy more vulnerable to shocks and
worsen prospects for improved living standards.

https://openknowledge.worldbank.org/bitstream/handle/10986/28932/Global-Economic-Prospects-Jan-2018-Ch1.pdf

#19 InvestorsFriend on 02.04.18 at 3:52 pm

Investor’s Powers versus Investors’ powers

2 Buddy on 02.04.18 at 2:59 pm asked:

If investors are moving out of equities into bonds – why are bond prices down and yields up? Shouldn’t bonds go up when equities go down? Can we expect bond yield to go down now that we finally touched this magical 3% milestone?

**************************
Good questions.

Any individual investor can sell equities and buy bonds. But investors collectively as a population cannot do so. One investor can only sell a stock by selling it to another investor.

Setting aside a few company buy-backs, every stock that was owed on Thursday was still owned by someone at the end of Friday.

Investors as a population through their trading with each other do not inject cash into or take cash out of equities by such trading but rather they simply bid prices up or down which does make the total of all stocks worth more money or worth less money on a given day.

Same applies in bond market and sometimes both increase in tandem or both stocks and bonds decline on the same day.

Most forecasters would say that if the ten year U.S. treasury bond goes firmly over 3.0% it will keep going. There are lots of reasons to expect rates to rise. But experience shows nothing like that is ever 100% certain.

#20 LivinLarge on 02.04.18 at 3:55 pm

There you go again IF, hauling a string from one post onto the following day’s post so more folks don’t miss your prognostications.

Stick with the post where it is and cry the river of tears there. Just self absorbed, narcissistic, pompous twit posting. You should be ashamed of your self.

#21 LivinLarge on 02.04.18 at 3:58 pm

“Is EVERYTHING expensive, are there no veritable bargains, no obvious sure things??”…hardly anything is expnsive..high priced yes but not expensive. There are lots of sure things but sure things rarely return much.

#22 AK on 02.04.18 at 4:01 pm

Eagles……..(+4.5)

Eagles…..Money Line….(+160)

#23 paul on 02.04.18 at 4:16 pm

Sometimes Garth you need to slow down,so the folks get it.

https://www.youtube.com/watch?v=1HvmtbZzA40

#24 I’m stupid on 02.04.18 at 4:19 pm

Lambo… piece of junk.

I get why someone would buy one instead of a Ferrari, more reliable. A Ferrari is like that hot date you wined and dined, then when you drive her home she says “I’m tired” when you try for sex. She’ll make you work for it but the ride is always spectacular.

A Lamborghini is more like the woman waiting on the docks for the ship to come in full of sailors. She’s fun but nothing worth working for.

Every line, on a Ferrari is there for aero dynamics, while Lambos are styled for looks. Either buy a Ferrari or stick with Porsche.

#25 Lisa on 02.04.18 at 4:19 pm

#5 Looney Baloney

WOW! What a surprise! Uncle Justin does something WITHOUT consulting Canadians.
That’s what we get when people vote for a narcissistic, self absorbed, know it all.

Ask Jordan Peterson:
https://youtu.be/f7bslrJ3vJU

#26 geez on 02.04.18 at 4:22 pm

Wish I could say the same for your house.

…………..

Garth, its not one or the other. Good grief

#27 Stan Brooks on 02.04.18 at 4:52 pm

The selfie photo-ops guy with always rolled up sleeves, working hard for Canadians.

https://ca.news.yahoo.com/dont-like-o-canada-change-everyone-wouldve-rejected-canadas-first-anthem-020121280.html

Loonie flushed down the toilet to 1 year low against the euro, 1.4 % down against USD as we speak.
No inflation though.

Stay away from TSX.

#28 Eyestrain on 02.04.18 at 5:01 pm

“It all confirms the obvious – a continued bull trend.
That would suggest this is a healthy correction.”

I though I saw inflation when house prices started exploding, but I must have been mistaken. In light of all these positive indicators, the historically massive, world-wide debt bubble is probably not worth mentioning. It will probably work itself out.

ETF liquidity will finally get its stress test this week. No idea which way the cookie will crumble, but I can make a sure bet on Brady when Gronkowski is healthy (enough). Enjoy the game!

#29 Stan Brooks on 02.04.18 at 5:01 pm

#25 Lisa on 02.04.18 at 4:19 pm
#5 Looney Baloney

WOW! What a surprise! Uncle Justin does something WITHOUT consulting Canadians.
That’s what we get when people vote for a narcissistic, self absorbed, know it all.

Ask Jordan Peterson:
https://youtu.be/f7bslrJ3vJU

———————-

Peterson is pretty smart man.

T2 is an absolute emanation of the cluelessness and stupidity of the average Canadian. What is T2’s IQ by the way?

#30 Cindy on 02.04.18 at 5:07 pm

Toronto is resilient like Bitcoin—Its value will always go higher.

As of now, anyone investing in Bonds are at the losers’ table. $100,000 in Bonds purchased last year is now valued at $94,400. Invest in Toronto. Support our troops. Support gender equality. Support the rights of gays. Those are the best investments!

#31 ANON on 02.04.18 at 5:08 pm

Nothing has changed over the last month with the economy […]

Except something did change with the stuff (besides promises of more in the future) that truly runs the economy. It’s price went up since the summer of last year.
I think that sound we’re hearing is: Pop!

#32 Cindy on 02.04.18 at 5:09 pm

Where did my comment go? Is it because I’m a feminist? How rude!

#33 unbalanced on 02.04.18 at 5:11 pm

To LL. I didn’t intend to rustle your feathers,scales, zits or whatever. But it sure looks like IF has. Do what I do. If I don’t like some comments, just scroll by the name. There are a few here to full of it. Remember the rules of the blog……..RESPECT. Final response. Dead material

#34 Ray on 02.04.18 at 5:20 pm

I looked at the “SPY.N”, an ETF that tracks the S&P 500, and that may be the largest ETF around. I placed a trend line on the valleys from the beginning of 2016 to now, and then placed a parallel trend line that hit most of the peaks. (weekly sticks). January’s movements were above the top channel trend line and still is after Friday’s decline. I think the SPY.N could lose another 5% to 10% and still be comfortably within the upward trend of 15% to 17% /yr growth.

#35 InvestorsFriend on 02.04.18 at 5:35 pm

Getting Attention

#20 LivinLarge on 02.04.18 at 3:55 pm said:

There you go again IF, hauling a string from one post onto the following day’s post so more folks don’t miss your prognostications.

Stick with the post where it is and cry the river of tears there. Just self absorbed, narcissistic, pompous twit posting. You should be ashamed of your self.

****************************************
LivinLarge, it is very kind of you to draw so much extra attention to my posts.

Could I ask though that you include more quotes from me and also the number of the post you refer to? That would be even more helpful.

#36 Capt. Serious on 02.04.18 at 5:35 pm

Something not discussed enough is that if you are a young saver you should get down on your knees and pray for a massive stock market sell off and a period of low returns. In the early years you want to be buying your stocks when future returns looks brightest (when prices are low). Later you want to compound a large some of money at high rates, so you prefer a period of high returns.
The reverse is true as you near retirement. You need to compound now, avoid blowing up the stack, and hope that there isn’t a market meltdown. The latter could put a bit of a dent in your retirement funds, because fewer earning years remaining to take advantage of lower prices.
Since we can’t control the sequence of returns we get, best to make sure you save enough.

#37 Honey Dripper on 02.04.18 at 5:50 pm

If you can’t handle 3-4% pullbacks 3-4 times a year then just get out of the stock market. I’ll be back buying more by the end of the week.
Lots of stocks on sale and just in time for RSP season. A wise investor also once said –
“If you want to buy stocks, why do you want them to go up and get more expensive?”

#38 The Toronto Dollar supports nude women on 02.04.18 at 5:56 pm

DELETED

#39 Sideshow Rob on 02.04.18 at 6:01 pm

Eagles = dumb money.

Speaking of dumb money…who was the brainiac who decided that women’s curling could compete with the Super Bowl? I’m a fan of curling and the women’s national championship is always a rating hit but scheduling the final to coincide with the Super Bowl??? That was so dumb you would almost suspect the government was involved.

#40 conan on 02.04.18 at 6:06 pm

#11 Smoking Man on 02.04.18 at 3:13 pm

I hope I am wrong, but the Dow dropping 750 points tomorrow would not surprise me.

Depends on the institutional sellers. Those morons from the managed money department. Damn them to Hell….

#41 EP on 02.04.18 at 6:08 pm

If anyone is wondering how low S&P500 can go this time around, just for entertainment value:
http://www.elder.com/newsletter/2018_01_248.pdf

The merchants of fear, selling newsletters and courses, are everywhere. Ignore them all. – Garth

#42 Andrew Woburn on 02.04.18 at 6:13 pm

There was some discussion yesterday about an article suggesting automated trucking will create perhaps as many jobs as it destroys.

That’s debatable but what I foresee is that trucking will become more competitive with rail transport over at least medium distances as the trucking cost per mile drops.

Since most goods shipped by rail have to be moved to and from the railhead by truck, the shipper has to pay to transfer the cargo on and off rail. This is why it rarely pays to ship by rail for less than say 1,000 miles.

Once trucks can roll 24/7 without a payroll cost their competitive range will be greatly extended. This could mean that many shippers who are now partly dependent on rail will cease to be or will be able to afford to be further away from a railhead which may affect their commercial real estate choices.

#43 Lost...but not leased on 02.04.18 at 6:14 pm

Super Bowl prediction:

Eagles will have a score of 66-0 at half- time.
……110 – O after 3rd quarter.

Brady (nudge nudge wink wink) mounts a comeback (NUDGE NUDGE…… WINK WINK) and Patriots win the game( more nudge nudge….. wink wink)

#44 Smoking Man on 02.04.18 at 6:20 pm

#40 conan on 02.04.18 at 6:06 pm
#11 Smoking Man on 02.04.18 at 3:13 pm

I hope I am wrong, but the Dow dropping 750 points tomorrow would not surprise me.

Depends on the institutional sellers. Those morons from the managed money department. Damn them to Hell….
……..

Tones of companies will be buying there own stock at a discount.

#45 Terry on 02.04.18 at 6:20 pm

“Like the way guys feel when their prime minister says he “self-identifies as a feminist.””

Wow, he said that? ………. our prime minister is quite a strange man.

#46 AlMac on 02.04.18 at 6:28 pm

IF/SA: I enjoy your informative posts and responses. Just skip over LL’s drivel.

I have kept cash on hand over the last 6 months waiting for a correction, and there appears to be some good opportunities on the way. On the other hand, I have also lost out on the run over this period. The old adage, you can’t time the markets is a lesson I am continuing to learn.

#47 US Citizenship ? on 02.04.18 at 6:30 pm

Re: Post #98 on Feb.3,2018 by Smoking Man

“Kid I’m an old washed up drunk”

I believe that you recently stated that you have moved to the United States on this blog. That’s not exactly the type of qualifications that the US are looking for. How did you manage to emigrate to the US or are you keeping your Canadian residence and only living in Cali 182 days or less a year? I’m not affiliated with any gov’t or law enforcement agency, just curious as to how you pulled it off.

#48 prairie person on 02.04.18 at 6:46 pm

They say you are never really on your own till your parents are dead, I can see that applying to millennial’s for sure, after all half the politicians, whether it be civil, provincial or federal are still living with there parents, ironic isn’t it ….

I picked this up on Facebook. Not sure if it is true. Anyone able to check?

#49 crowdedelevatorfartz on 02.04.18 at 6:49 pm

@#30 Cynthia
“Invest in Toronto. Support our troops. Support gender equality. Support the rights of gays. Those are the best investments!….”
++++++

Inheirited a new nom de plume I see.
Whatever.
Since I invest in stocks, bonds, etf’s, etc. and my return on investment is quantifiable.
Please explain, in financial terms, what my endlessly rising, onerous taxes(what you term “investment”)…. in social awareness programs will produce other than more people standing in line with their hands out waiting for more money….?
Vancouver has tried over 35 years that I’ve lived here to “end homelessness”.
Billions have been spent in welfare, rent control, subsidized housing, new housing, on and on and on.
The result?
Homelessness is up and, after the past 10 years of spending 100’s of millions, the Mayor is not seeking re-election.
Epic fail.
Go spew your economically unsustainable social “Justice” warrior swill on a blog that wants to hear it.

#50 Get a grip on 02.04.18 at 6:50 pm

Garth

Get a grip on the present reality. Women serve in the armed forces in case you hadn’t been informed. And they pay taxes at the same rate as men.
Why would they not be recognized equally in our national anthem?
Masking misogyny behind humour is still misogyny.

#51 Cottingham a bargain on 02.04.18 at 7:02 pm

Not sure where or who posted comment about “ selling begets more selling and buying begets more buying” but that’s what I hate about financial assets. It’s how quickly and violently they drop when the selling starts . And no one really knows the bottom.

Nice thing about RE even in the seemingly slow period we are in now and marginal price declines is if you don’t have to sell just take your peoerpty off the market and wait . Ya I know , Al Sinclair advice but kinda true.

You can sell financial assets in seconds. Real estate can take weeks, months or years. – Garth

#52 Fly like a Beagle on 02.04.18 at 7:13 pm

#12 Post on 02.04.18 at 3:16 pm
Been a reader since 2008/2009. Garth always seemed to have recommendations for buying or selling something financial – like currencies or preferred ETFs. But I haven’t read any of these lately – how come?

Is EVERYTHING expensive, are there no veritable bargains, no obvious sure things??
_———–

Depends

#53 Figmund Sreud on 02.04.18 at 7:43 pm

The stock markets lost 2.5%. Headline writers had a cow. And a balanced portfolio shed 0.8%. Yawn.
__________________________

Fair enough, … but here is my view on the ETF-based balanced portfolio: … when the market is cheap, ETFing, on a risk/reward basis, is a very sensible way to go. But, … when the market is expensive, as it looks to be today, ETFing carries increased potential risk than, say, several feretted out goodly undervalued, or fairly valued, set of stocks does.

And so, following makes sense to me is:

° Cheap market – a larger percentage of a portfolio in indexes.

° Expensive market – a smaller percentage of a portfolio in indexes.

But that’s just me, … others may view this very, very differently.

Best,

F.S. Comox, BC.

It’s about balance and diversification, not ETFs. – Garth

#54 Nonplused on 02.04.18 at 7:45 pm

Wait… Ryan waxes his Lambo himself? Doesn’t he have any Amazons to do it?

#55 Go Kart Mozart on 02.04.18 at 8:07 pm

I’m not clear on the Stocks / Bonds see-saw. If auto sales are tanking , I should sell my GM/Ford/Chrysler stocks and buy a Detroit city bond?

#56 Pepito on 02.04.18 at 8:11 pm

….this is all pretty predictable and routine. -Garth
_______________________

There’s that cocky know-it-all arrogance again. It will be your undoing eventually.

I doubt it. – Garth

#57 the tooth fairy on 02.04.18 at 8:22 pm

The stock market is for insiders only. Show trials (Martha Stewart) and Freak Shows (Bernie Maddoff) are just psychological operations to dupe the rubes. aka retail ‘investors’.

#58 Long-Time Lurker on 02.04.18 at 8:23 pm

So what’s going on here? My guess: The US bond yield is going up. Some people pulled their money out of the stock market because they knew it’s overvalued and were afraid of a drop. They were afraid money would go into the bonds and wanted to exit ahead of the crowd. Next the algorithms and crowd noticed and followed along causing the big drop.

What’s next? It depends. If people spook there’ll be another drop. This will continue until people stop panicking. Eventually things stabilize until the next market shock comes along.

I’d say continued volatility for the next month. So it’s possible we’re in correction territory.

The U.S. economic fundamentals seem strong but the Sword of Damocles debt hangs over it. It’s basically a tightrope walk for them or at least for Powell. If interest rates go up too much relative to inflation Powell could trigger a recession.

I think Ray Dalio has been making good calls on his Twitter account. He said next year is riskier due to the widening gap between the top 40% and bottom 60% of the US population. He also said that rising bond rates would affect asset prices which is what happened.

By the way, stock markets dropped worldwide. So maybe everyone’s afraid of rising interest rates.

Garth’s right about the balanced and diversified portfolio. Things were very hard to call for the last year and even now everything is still uncertain.

#59 Smoking Man on 02.04.18 at 8:34 pm

#47 US Citizenship ? on 02.04.18 at 6:30 pm
Re: Post #98 on Feb.3,2018 by Smoking Man

“Kid I’m an old washed up drunk”

I believe that you recently stated that you have moved to the United States on this blog. That’s not exactly the type of qualifications that the US are looking for. How did you manage to emigrate to the US or are you keeping your Canadian residence and only living in Cali 182 days or less a year? I’m not affiliated with any gov’t or law enforcement agency, just curious as to how you pulled it off.
…….

Money has wings.

#60 Bill Grable on 02.04.18 at 8:36 pm

If the DOW and TSX, start to dive from the opening Bell, Monday – I think the correction is going to be stiff.

Mr. Turner has been warning and so has Ryan Lewenza, that we were in for a bump, or worse.

Trump is about to get it in the teeth.

#61 Paul on 02.04.18 at 8:40 pm

I doubt it, me too.
Lol

#62 conan on 02.04.18 at 8:41 pm

N.E. does the come back and takes it all.

#63 The Toronto Dollar is the reserve currency on 02.04.18 at 8:42 pm

Sir, why are you a hater? The Toronto Dollar will become the Reserve Currency of the world bypassing the US dollar by centuries!

#64 Nagraj on 02.04.18 at 8:43 pm

Blessed are the sons and daughters of the meek, for with their diversified and rebalanced portfolios they should indeed inherit a rather safe return. Woe to the cowboys for they shall . . . except maybe for tomorrow . . . And as for ye non-feminists: beware lest ye be changed into a woman whilst ye sleep.

#65 Buddy on 02.04.18 at 8:44 pm

InvestorFriend –

Thanks. Good reminder that bonds and equities aren’t always inversely correlated.

But I really hope that correlation still exists. Esp. For the balanced investor.

#66 Nelson from the Simpsons on 02.04.18 at 8:47 pm

Ha Ha!

Bitcoin BTC 7,998.9 $136.06B $7.02B -12.23%

From December -59%. – Garth

#67 crowdedelevatorfartz on 02.04.18 at 8:55 pm

@#63 The Toronto Dullard

Mdme. Misandrist why are you so predictable?
Boredom? Bulimia? Blocked bowel, Binary brainwashing?

Non-Torontonians …aka… the non center of the known Universe…. want to know.

On second thought.
We dont.

#68 ImGonnaBeSick on 02.04.18 at 8:56 pm

What is going on with InvestorsFriend and LivinLarge? What’s with the squabble? I enjoy both of your posts. You do realize you’re arguing over which is better and RRSP or a TFSA right? The important thing is that people save and invest their money, and by the sounds of it, you’re both passionate about convincing people to do that. Teaching a man to fish, at the end of the day, it doesn’t matter what reel he’s using as long as there’s food on the table.

#69 For those about to flop... on 02.04.18 at 8:58 pm

Super Bowl,Pooper Bowl.

Let’s play…

Are these guys in trouble?

Survey says…

M43BC

5691 Jaskow Dr. Richmond.

Picked up for 1.9 million in May 2017

Asking 1.69

https://www.zolo.ca/richmond-real-estate/5691-jaskow-drive

$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#70 stage1dave on 02.04.18 at 9:02 pm

Judging by what I see around north-central Alberta the last few months, the only “sure things” might be those for sale on Kijiji…

#71 Pete from St. Cesaire on 02.04.18 at 9:03 pm

Either buy a Ferrari or stick with Porsche.
—————————————————————-
Porsche 914, best little sports car ever made.

#72 Joe2.0 on 02.04.18 at 9:05 pm

Oh well, you can’t take it with you.
We need a big ole market crash to reprioritze what really matters.
Tic toc reality clock.

#73 For those about to flop... on 02.04.18 at 9:08 pm

Are these guys in trouble…

M43BC

6008 6th st ,Burnaby.

Paid 2.42 Feb 2017 asking 2.58 now 2.38

https://www.zolo.ca/burnaby-real-estate/6008-6th-street

$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#74 For those about to flop... on 02.04.18 at 9:14 pm

Are these guys in trouble…

M43BC

6250 Cedarhurst St. Paid 5.7 April 2016 were asking 6.38 ass 5.61 2017

On 5.98

https://www.zolo.ca/vancouver-real-estate/6250-cedarhurst-street

https://www.bcassessment.ca/Property/Info/QTAwMDAwMFRFVQ==

$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#75 MF on 02.04.18 at 9:15 pm

Okay so if this is the long awaited correction, then what is everyone buying??

Large cap US index ETF funds? Canadian XIU?
ENB.to? GE?

Are bonds down too?

MF

#76 For those about to flop... on 02.04.18 at 9:19 pm

Are these guys in trouble…

M43BC

941 Macintosh Street, Coquitlam paid 2.53 asking 2.48

Jul 4:$2,598,000
Jan 5: $2,488,000
Change: – 110000.00 -4%

https://www.zolo.ca/coquitlam-real-estate/941-macintosh-street

https://www.bcassessment.ca/Property/Info/QTAwMDAzWE5HMQ==

$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#77 For those about to flop... on 02.04.18 at 9:22 pm

Are these guys in trouble…

M43BC

6349 Elm st, Vancouver.Paid 11.38 January 2016 ass 9.23 2017

Asking 12.38

https://www.zolo.ca/vancouver-real-estate/6349-elm-street

https://www.bcassessment.ca/Property/Info/QTAwMDAwMFRKUw==

$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#78 For those about to flop... on 02.04.18 at 9:27 pm

Are these guys in trouble…

M43BC

13697 Malabar Avenue, Surrey paid 1.32 August 2016 ass1.17 asking 1.18

Jul 8:$1,350,000
Jan 2: $1,188,000
Change: – 162000.00 -12%

https://www.zolo.ca/white-rock-real-estate/13697-malabar-avenue

https://www.bcassessment.ca/Property/Info/QTAwMDA3NUZNQQ==

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#79 For those about to flop... on 02.04.18 at 9:32 pm

Are these guys in trouble…

M43BC

They paid 4.5 for this land with a 95y.o house ,now asking 4.58

3811 14th Ave Vancouver

Mar 1:$5,380,000
Mar 9: $4,980,000
Change: – 400000.00 -7%

https://www.zolo.ca/index.php?sarea=3811%20W%2014th%20Avenue,%20Vancouver&ptype_condo=1&ptype_house=1&filter=1

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMDM2MQ==

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#80 For those about to flop... on 02.04.18 at 9:37 pm

Are these guys in trouble…

M43BC

1356 Chartwell Dr,West Vancouver.

Paid 5.69 May 2017

Asking 5.48
Now asking 5.38

https://www.zolo.ca/west-vancouver-real-estate/1356-chartwell-drive

https://www.bcassessment.ca/Property/Info/QTAwMDAyOUQwSw==

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#81 For those about to flop... on 02.04.18 at 9:41 pm

Are these guys in trouble…

M43BC

1851 Moore ave, Burnaby.

Paid 1.6 March 2016 Ass 1.52

Asking 1.58

https://www.zolo.ca/burnaby-real-estate/1851-moore-avenue

https://www.bcassessment.ca/Property/Info/QTAwMDAzV1pNSw==

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#82 Lisa on 02.04.18 at 9:43 pm

#29 Stan Brooks
Justin T’s IQ? I can’t find it! Less than Steven Harper’s for sure..

#83 For those about to flop... on 02.04.18 at 9:50 pm

Are these guys in trouble…

M43BC

1650 Waterloo Street, Vancouver paid 5.39 ass4.74 now asking 5.19

block of land

Jan 12:$5,900,000
Jun 20: $5,698,000

Change: – 202000.00 -3%

https://www.zolo.ca/vancouver-real-estate/1650-waterloo-street

https://www.bcassessment.ca/Property/Info/QTAwMDAwMDVEWA==

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#84 LivinLarge on 02.04.18 at 9:51 pm

“You do realize you’re arguing over which is better and RRSP or a TFSA right?”…Good lord, that was back in October and it was actually what was better, a non registered portfolio started early in one’s career or an RRSP started at the same time and some straight forward tax math showed that the non reg portfolio will always give better net net net wealth than an RRSP if calculated using real life scenarios because of the contribution limit for RRSPs being a proportion of income (less RPP if you have one). No such limit imposed on non reg accounts, thank god.

The TFSA is just an incredible bonus.

I find it incredibly tacky for someone, anyone, to promote a self serving agenda (to drive traffic to their own online presence using someone else’s blog especially after being repeatedly given the facts otherwise. The “Disclosure” schtick earlier was just too pompous to leave alone on a slow Sunday in the boonies.

#85 Fake News Again on 02.04.18 at 9:56 pm

#120 crowdedelevatorfartz on 02.04.18 at 11:05 am
@#95 Fake News
“you Global Warming tards…”

++++++

Denial is not just a river even when it dries up.
8 0f the last 10 years the hottest ever recorded globally and you stubborn fools still think its “fake news”.
Good to see industry propaganda is working.

When you’re fighting for the last bottle of water tossed off the back of an army truck …..remember this conversation.

________

Oh…you mean the puny, tiny, insignificant army that Canada does not have? In a country that is raining/snowing/below zero 6 months a year?

But I forgot according to your “GOVT FUNDED” scientist friends…..the science is settled. Sorry….but I would rather believe the tens of thousands of “Private Sector” scientists that call your Global Warming….Global BS.

PS: how was that canoe trip around the Ice Free Arctic Circle that Al Gore promised us 12 years ago? WHOOPS !!

#86 Steerage steward on 02.04.18 at 10:25 pm

Let he who has invested 15% of his take home since his was 20, as well as never carried a CC debt throw the first stone

#87 crowdedelevatorfartz on 02.04.18 at 10:26 pm

@#84 Fake news

You should refrain from alcohol during the Super Bowl.
You’re embarrassing yourself.

#88 My dog has issues on 02.04.18 at 10:31 pm

If I had a large pool of other people’s money I’d buy manulife, valeant, csx, ford, cenovous, high arctic energy services, Snapchat, maybe some mosaic. There’s some others too…..but since nobody wants to give me their money I’ll just keep adding and dripping to my 4 main funds.

#89 Tccontrarian on 02.04.18 at 10:42 pm

I’m a nobody, but I have very good sources. I can’t emphasize enough that the current bear market will make the last seem tame. Anyone buying the dip will regret it.
History repeats- or rhymes. And I have great respect for the market’s ability to fool the vast majority. That’s why I’m a contrarian!

TCC

And, thus far, a loser, with ‘very good sources’. – Garth

#90 Gravy Train on 02.04.18 at 10:47 pm

#2 Buddy on 02.04.18 at 2:59 pm
“If investors are moving out of equities into bonds, why are bond prices down and yields up? Shouldn’t bonds go up when equities go down? Can we expect bond yield to go down now that we finally touched this magical 3% milestone?”

Hint: Bonds are monetary assets, but stocks are nonmonetary assets!

Do you need another hint? :)

#91 Lost...but not leased on 02.04.18 at 10:53 pm

#25 Lisa

Re: Turdeau…

Just checked on WIKI re last Federal Liberal leadership convention.

Turdeau won over 80% of delegates on first ballot.

Other (5) candidates were:
(4) females
(1) male

World according to Justin should be either :
–surrendering male privelege
–surgery
–and/or designating himself as another of 100 + other legal gender designations

#92 Sam the Sham on 02.04.18 at 11:00 pm

“Like the way guys feel when their prime minister says he “self-identifies as a feminist.””

I’m waiting for Trudeau to show up in a dress and high heels and tells us he self-identifies as LGBT!!

#93 Lost...but not leased on 02.04.18 at 11:13 pm

Re: crowdedelevatorfartz

I have successfully applied to the courts to take control of his affairs.

The clinching argument was submission of his last few blog posts….any more and the judge(aka” Enough already”) was going to claim contempt.

#94 T2LGBT on 02.04.18 at 11:15 pm

#91 Sam the Sham on 02.04.18 at 11:00 pm

“Like the way guys feel when their prime minister says he “self-identifies as a feminist.””

I’m waiting for Trudeau to show up in a dress and high heels and tells us he self-identifies as LGBT!!
…..

This close enough??

http://www.dailymail.co.uk/news/article-4722580/Justin-Trudeau-meets-cross-dressers-gay-pride-parade.html

#95 Welcome to Slurrey on 02.04.18 at 11:36 pm

This blog has been preaching real estate correction for more than 8 years …………….. so if anyone here thinks they are gonna see 2010 prices ( inflation adjusted) , lol dont count on it , especially in the yvr, everyone loves real estate down here , there will always be a high demand, FOMO is real and it happened to You

#96 Fortune 500 on 02.04.18 at 11:39 pm

Some people wonder why I like Greaterfool so much considering housing prices have remained high for much of its life. I have to say this post here is one of the big reasons. It is nice to get a realistic, well explained and yet humorous summary of broader market movements and sentiment. This is something Garth does very well. Cheers sir!

#97 Fake News Again on 02.04.18 at 11:53 pm

#86 crowdedelevatorfartz on 02.04.18 at 10:26 pm
@#84 Fake news

You should refrain from alcohol during the Super Bowl.
You’re embarrassing yourself.

_______

The Super what? Oh….that game that nobody watches anymore because they are sick of the LEFT marxist brainwashing BS it represents.

And it was the coldest Super Bowl on record by the way. Ha….Gotcha.

#98 so you said on 02.05.18 at 1:10 am

https://www.youtube.com/watch?v=zJs9p-VNORw

I would like to purchase a condo for 300K?

#99 Rexx Rock on 02.05.18 at 1:29 am

Really, the global economy is great.Yeah for low paying jobs for someone who can live at home.Low to interest rates for the last 10 years with many developed countries near zero or negative.Trillions in debt with stock buybacks to the moon.A strong economy means a strong currency.Lets see top 6,Kuwati diner,Baharani Dinar,Omani Rial,Lativan Vat,Jordanian Dinar,Gibralter Pound.
https://networthvisa.com/highest-currency-in-the-world/

#100 Midnights on 02.05.18 at 1:38 am

Invest in Toronto. Support our troops. Support gender equality. Support the rights of gays. Those are the best investments!
————————————————————————————————

http://www.alt-market.com/articles/3362-a-post-mortem-on-the-corpse-of-social-justice

#101 steerage steeward on 02.05.18 at 2:12 am

We are waiting to say I told you so, but I think when that time comes

we will be sad to be right

https://www.youtube.com/watch?v=8of3uhG1tCI

Garth on the left

#102 steerage steeward on 02.05.18 at 2:26 am

https://www.youtube.com/watch?v=SBgeCZW3upg

https://globalnews.ca/news/3995184/toronto-real-estate-sales-prices/

#103 NoName on 02.05.18 at 3:04 am

Interesting read

https://www.fastcompany.com/40508725/people-arent-having-babies-because-the-rent-is-too-damn-high?utm_content=buffer3bae4&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

#104 NoName on 02.05.18 at 4:05 am

https://youtu.be/Gg5SwyTvAHw

Addendum to my previous post.
https://youtu.be/Gg5SwyTvAHw

#105 Howard on 02.05.18 at 4:07 am

This might be old news by now but for those who haven’t yet seen the now-famous Jordan Peterson / Cathy Newman debate:

https://www.youtube.com/watch?v=aMcjxSThD54

Doesn’t it seem that, were Ms. Newman Canadian, she is exactly the kind of low-intelligence sloganeer that Trudeau would put in Cabinet?

#106 FLHTK on 02.05.18 at 5:30 am

Nice article! Good read tonight.

#107 Rhymin' Simon on 02.05.18 at 6:47 am

When I think back
On all the crap I learned in high school
It’s a wonder
I can think at all
And though my lack of education
Hasn’t hurt me none
I can read the writing on the wall

Mama don’t take my Kodacoin© away
Makes you think all the world’s a sunny day

Mama don’t take my Kodacoin©
Mama don’t take my Kodacoin©
Mama don’t take my Kodacoin© away

(P. Simon)

#108 Artful Dodger on 02.05.18 at 6:53 am

#95 Fortune 500 on 02.04.18 at 11:39 pm
Some people wonder why I like Greaterfool so much considering housing prices have remained high for much of its life. I have to say this post here is one of the big reasons. It is nice to get a realistic, well explained and yet humorous summary of broader market movements and sentiment. This is something Garth does very well. Cheers sir!
*************

Whazzat? Repetition?

Garth puts the “Kool” in “Kool-aid”

#109 Black Swan Alert! on 02.05.18 at 6:56 am

Patriots Loose!

#110 Victor V on 02.05.18 at 7:10 am

Bitcoin slides for fifth day amid stocks rout

https://www.bnn.ca/bitcoin-slides-for-fifth-day-amid-stocks-rout-1.988246

Bitcoin declined for a fifth day and led cryptocurrencies lower as a global equities selloff deepened and investors migrated to havens.

The biggest digital currency sank 10 per cent to US$7,722 at 10:51 a.m. in London, according to composite Bloomberg pricing. It has tumbled 22 per cent since the start of the month, and by last week had erased more than half of its value from a record high US$19,511 in December. Rival coins Ripple, Ethereum and Litecoin also retreated, according to data compiled by Bloomberg.

#111 crowdedelevatorfartz on 02.05.18 at 7:43 am

@#96 Flake News
“it was the coldest Super Bowl on record by the way. Ha….Gotcha.”
++++++

Wow. A whole 52 years of weather records. That clinches it. Hundreds of years of worldwide meterlogical records mean nothing based upon the observations of “the coldest Super Bowl on record”.
Which by the way IS another odd weather occurance, another record of bizarre, huge, weather pattern swings all pointing to how skewed the wethaer Patterns are bcoming less and less predictable. Hotter summers, colder winters, heaviest snow fall, heaviest rainfall. Inevitably the world wide temps, precipitation measurments keep swinging violently year after year after year.
Trudeau’s kids will deal with a weather world gone mad while he focuses on gender equality and Trans Mountain pipeline…

Sorry Flake, your simplistic obstinance is boring me.

I no longer wish to engage in a battle of wits with an unarmed man.

#112 Price (spiral) Fixing on 02.05.18 at 7:44 am

Today’s % drop in the Nikkei exactly matches Friday’s drop in the Dow. Coincidence surely.
Honest Abe is hanging onto his half share of the Nikkei, but is he buying? I’m hoping to pickup some US bargains today.

Sayonara,
Kamikaze Wanabe

#113 Jorge on 02.05.18 at 7:45 am

One duplex on our street listed for $500k but in deplorable condition sold very quickly! Most likely to a flipper since a full renovated duplex can go for close to a million. Meanwhile another duplex listed at $799k, in OK shape but unrenovated, has been languishing on the market with apparently zero interest.

As for single family detached, there’s no slowdown in sight. Here in Montreal many people need to give their three-month notice by the end of March to cancel their lease which ends in July, so these people are being aggressive in their buying. Every single open house we’ve went to, easily multiple offers from multiple buyers and the houses are often going for over asking.

Alas, I don’t see much impact by B20 on the local market here, maybe because even our inflated prices are “only” 500-600k in the suburbs, still affordable for dual-income families. Hopefully it will cool down after March so that we can actually pick up something decent.

#114 Millmech on 02.05.18 at 7:46 am

Interesting read that the financial markets are worried about the Fed raising interest faster than they have anticipated.I see .5 rate hikes on the near horizon,I hope the investors in real estate are ready for 2.6 per annum uptick on mortgage rates.The government will remove the B20 regulations within a year because there is a good chance five year fixed will be at 6%.Remember investors that the banks always add a bit of juice before each hike.

#115 Yoohoo, Bitcoinnaire? on 02.05.18 at 8:19 am

7600.

Please come off the ledge. It ain’t worth it.

#116 Stan Brooks on 02.05.18 at 8:54 am

#94 Welcome to Slurrey on 02.04.18 at 11:36 pm
This blog has been preaching real estate correction for more than 8 years …………….. so if anyone here thinks they are gonna see 2010 prices ( inflation adjusted) , lol dont count on it , especially in the yvr, everyone loves real estate down here , there will always be a high demand, FOMO is real and it happened to You/

————————————

Oh, we absolutely will see that correction in real terms – as compared to the cost of productive capital/ international stocks, gold and stable currencies i.e. Euro.

We might even see reversion to prices from 2006 however strange that might sound.

Since the early 2000 we were pretty much living on huge credit subsidies burning the savings at a very fast rate and piling on new huge credit in order to reach the current situation where no one has any money (including to invest, so we see dismal TSX performance), prices skyrocketing but you get negative return on savings.

We recorded some nominal GDP ‘growth’ but if you calculate real inflation you will see that we were in depression pretty much for 8-10 years with real inflation outpacing ‘growth’ despite the rise in debt.

Of course the herd is stupid and complacent, this is why we reached such extremes.

But at some point we will see that gravity actually works and we can not levitate pretty much on farts and verbal diarrhea of the BOC and financial ministry.

The ‘benefits’ of higher house prices will be:
– higher property taxes
– higher insurance
– inflation
– inability to have kids due to inflation
if you have kids you will have troubles running them through university only to find out that they won’t have
a chance for a decent job after that due to competition automation, outsourcing, cheap foreign temporary labour.
You kids will never be able to afford a home

– you will lose young professionals who will just move out to different places/countries, just watched on YouTube video showing 2 doctors with no kids who can not afford a home in Vancouver and are moving out/to the states.
– you will never ever retire and pass anything to you kids if you have any.

We witness the cannibalization and demise of the work force with all the consequences,

– the wealth effect from high house prices leading to boom of HELOC and people living beyond their means.

The economy is just one giant gas bag based on debt that can explode at any point in time with devastating consequences.

So stay away form anything priced in CAD, including TSX, except some gold stocks, maybe some energy companies (with no exposure to oil sands), some mining companies and that’s it.

service, financial and debt can not provide for a productive economy.

GTA and Vancouver are not better places than Minneapolis/St Paul but somehow 4-5 times more expensive while Canadians have less before tax income.

It is all delusional, at some point the music will stop and we will see who will be left holding the bag,

Sure, progressive and fair liberal leadership might demand some premium as well as the bad weather but hey, people stupidity has some limit, and even if it does not, the ability of stupid people to survive individually and as a group will be severely limited in the open world we live in.

#117 Buddy on 02.05.18 at 9:03 am

#89 Gravy Train

Yes. Money is used to buy/sell both and the price is represented in a currency so how can one be a non-monetary asset? The price of an equity is representative of the business I get that but it’s still a price and the price still represents value.

#118 Keith in Rio on 02.05.18 at 9:06 am

If Ryan was waxing his Lambo, he must be a big investor in gold bullion as well………Lambo driver’s like their neck chains, you know.

#119 NotLegalAdvice on 02.05.18 at 9:17 am

My Father’s had me reading this “pathetic” blog since 2008, he used to print it and bring it home. I was 18 then. I’ve continued to read it since, but now voluntarily.

So….looks like a I made an amateur mistake.

Invested in the weed and crypto market at it’s peak. FOMO at it’s finest. Lost a bit of money there, yikes!

However, I’m glad I did not make the mistake of investing in the real estate market at it’s prime, now that would have been foolish.

Hold on folks, I heard the world’s biggest roller coaster is being built here in Toronto, and we get to experience the ride first.

#120 Tater on 02.05.18 at 9:24 am

#65 Buddy on 02.04.18 at 8:44 pm
InvestorFriend –

Thanks. Good reminder that bonds and equities aren’t always inversely correlated.

But I really hope that correlation still exists. Esp. For the balanced investor.
—————————————————————-
Well, it’s really only existed for the last 25 or 30 years so I wouldn’t count on it.

Investors with preferred shares are reaping the benefits right now. That’s how the FI portion of a balanced portfolio works best. – Garth

#121 young & foolish on 02.05.18 at 9:30 am

What we are finding out is that in the age of instant communications and free flowing capital there are no markets …. its just one ….

#122 Duke on 02.05.18 at 10:04 am

The key sentence of the entire article is;

“Wish I could say the same for your house.”

#123 Tater on 02.05.18 at 10:05 am

Macro Man took on the stock-bond correlation issue today. https://macro-man.blogspot.ca/2018/02/old-correlations-die-hard-stocks-and.html

#124 Rooster on 02.05.18 at 10:21 am

#115 Stan Brooks on 02.05.18 at 8:54 am

people stupidity has some limit
———————————-

Another fine mess, Stanley…..

“Two things are infinite, the universe and human stupidity, and I am not yet completely sure about the universe.” (attrib. to A. Einstein, but prob. FS Perls, or even SJ Perelman ;-)

#125 Old Ron the Realtor on 02.05.18 at 10:30 am

No stock crash, no real estate crash, hardly any doom. Of course no boom either. “Hokey Pokey” markets this year folks. “Ya put yer right foot in ya takes yer right foot out……”

Lotsa time on your hands, I guess… – Garth

#126 Doug in London on 02.05.18 at 10:33 am

As I said some time in the last 3 days, stocks are ON SALE now. Boxing Day in February? Sure, why not?

#127 Shortymac on 02.05.18 at 10:34 am

I’m happy my home team, the eagles (iggles) won last night! It’s a good start to the year!

#128 Mattl on 02.05.18 at 10:36 am

#121 Duke on 02.05.18 at 10:04 am
The key sentence of the entire article is;

“Wish I could say the same for your house.”

Ya sure. Houses in YVR go on an insane bull run, double in price and then slowly melt single digits and its a catastrophe. I mean look at Flop “report”, an investor in Richmond lost 4 percent after expenses, wow investors losing single digits on a 6 minth bet, who would have ever thought that possible lol. Stocks give back 2.5% in a DAY and it a yawn.

For most folks both are a yawn. Who cares what my house is doing, we wake up every morninq in it. And if anyone does care, we started in RE with 15k down in 2008 and turned that into close to 400k over the past ten years. House will be paid off in ten more years. Borrowing money at 2% and never paying more then comparable rent. Since money was so cheap, we were still able to fully fund investment vehicles.

So ya, don’t feel too smug when Garth tells you about us poor homeowners getting killed in the market. Sure, late entrants might get killed – same way a guy that just entered equities a few weeks back is getting smoked – but for most of us the RE correction is a huge yawn. Insane gains followed by a correction that creates more buying opportunities. Maybe I will buy the neighbours place if he gets in trouble (which he won’t, because he is up 600k and mortage free). Whats the problem here again?

It’s blinded people who put all their net worth into a single asset then go on blogs to try and defend it. Good luck with that. – Garth

#129 Mike in Toronto on 02.05.18 at 10:46 am

RE: #119 Tater

“Investors with preferred shares are reaping the benefits right now. That’s how the FI portion of a balanced portfolio works best. – Garth”

My preferreds and Fixed Income are very flat or negative (including the monthly or quarterly returns). But then, they’re indexes.

It would be nice to find a way to get a fee-based advisor without being hit with the percentage-of-portfolio fees. Pay somebody a lump of money to help balance the portfolio, identify exposures, tax efficiency and opportunities to diversify. These things have tangible value to me, whereas a nebulous percentage-of-portfolio fee is difficult for me to justify. There is of course no guarantee that things will be appropriately balanced… but the percentage of the portfolio… that’s certainly lost.

Ah well, it was nice to have an all-green portfolio for a while. Those days were short lived.

Now only my lottery ticket holdings are in the black. BBD, pot stocks and bitcoin.

You find it difficult to justify paying someone for consistent returns while moaning about substandard ones? Either get help or DIY. But don’t whine. – Garth

#130 Midnights on 02.05.18 at 10:46 am

Bitcoin…
OUCH!!!!!!!!!

I told ya before Christmas to bail. – Garth

#131 Mattl on 02.05.18 at 10:57 am

Well ya, if someone has all of their net worth in their home that a losing strategy. Not sure how they would pay the upkeep in retirement, much less all the other expenses required when work income turns off.

I also think long term, middle class renters that have all their eggs in financial assets are going to be in trouble. In 25 years rents are going to be 25-60k a year. A renter will need over a million just to service rent payments. Or they will need to move to Mexico or Winnipeg.

If you have a properly constructed portfolio, returns generally increase with inflation. – Garth

#132 IHCTD9 on 02.05.18 at 11:28 am

#102 NoName on 02.05.18 at 3:04 am
Interesting read

https://www.fastcompany.com/40508725/people-arent-having-babies-because-the-rent-is-too-damn-high?utm_content=buffer3bae4&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
__________________________________________

Nice article, makes perfect sense too. But they pay zero homage to the fact that the same thing is happening in totally affordable areas outside the big Urban areas as well. Essentially no one has 5-6 kids anymore. 3 is about the most you’ll see anywhere.

This is a Western Wealth effect, it’s going on all over the planet. Even new Canadians I know [who have 10 siblings] – have been here 20+ years, married here, and had kids here – ended up with 1-2 offspring, that’s it. It has to do with money yes – but lifestyle is just as important.

The above should drive fear into the hearts of government as aging demographics with a dearth of youth is a revenue and economic dead end. That’s why Canada is importing loads of 20-30’s youth trying to keep balanced. But these are exactly the folks who don’t want kids – they want money, and a lifestyle.

Think this is fixable? (not really)
Think this will increase taxation (yep – 100% guaranteed)

#133 Nurses in Negligees on 02.05.18 at 11:39 am

We are just here to stress test your heart.

#134 Midnights on 02.05.18 at 11:44 am

The Global Warming Swindle Movie…

https://youtu.be/52Mx0_8YEtg

Read Armstrong’s work and others. They back up all they say…
Just saying.
Ps. Follow the money.

#135 For those about to flop... on 02.05.18 at 11:47 am

Home is where the half price home is…

M43BC

“Suburbs Really are the Best Places to Live in America

Algorithms help us make almost every decision—they can even decide court cases and predictlegislation—but is it possible to objectively calculate the best places to live? The answer depends on which factors are included and how the different metrics are weighted against each other. Luckily, MONEY has already done the hard work in creating the data behind our new map.

MONEY incorporates more than 170,000 data points into its ranking, such low crime rates, the quality of education systems, and public amenities. In short, they conduct a robust analysis. We wanted to simplify things, so we focused only on median household income (which corresponds to the size of the dot on the map) and future job prospects (which relates to the color of the dot). Mapping the data in this manner creates an easy snapshot of the most desirable places to live in the country.
Let’s look at the data one step at a time. There are eight cities where the median household income cracks $100K (see the list below). Paradise Valley, AZ tops the list with an incredible median income of $138,192. Second place is a full $10,000 lower in Mercer Island, WA, where the typical family brings home $128,484. Lower Merion, PA takes third place with a respectable median income of $117,438, a full $11,000 lower than Mercer Island. There’s not as much separation from one place to another further down the list.

Median household income is a good metric for understanding how well-off communities are right now, but projected job growth serves as a leading indicator for how the economy will change in the future. Taking a look at only job growth reveals a very different list, with St. Augustine, FL leading the pack at an incredible 18.2% projected growth. We hasten to add the median income is only $47,748, but that will only increase if labor remains in high demand. Allen, TX comes in second place with projected growth topping 17% and median income at $104,524. That’s more than twice as much as St. Augustine. These numbers indicate the labor market is going crazy in certain parts of the country.

Ideally, the best place to live would have both a high median income and strong projected job growth. In other words, looking at our map, the best place would be a large green dot—Allen, TX. As a matter of fact, there’s a clear cluster of green dots stretching from Allen to Fishers, IN, indicating a buoyant economy in certain parts of the mid-South. The Northeast meanwhile continues to boast some of the highest median incomes but comparatively little in the way of robust job growth.

If we have to pick one and only one metric for a ranking, median income is a good choice. Here’s a simplified list of the top ten places to live, ranked in order of the median household income. We included the expected job growth rate for each location as a reference.

1. Paradise Valley, AZ: $138,192 and 9.1%

2. Mercer Island, WA: $128,484 and 7.6%

3. Lower Merion, PA: $117,438 and 4.5%

4. Lone Tree, CO: $116,761 and 7.9%

5. Hockessin, DE: $115,124 and 4.3%

6. Reston, VA: $112,722 and 3.1%

7. Allen, TX: $104,524 and 17.0%

8. Rockville, MD: $100,158 and 5.8%

9. Woodbury, MN: $99,657 and 4.8%

10. Valley Stream, NY: $88,693 and 3.6%

Almost all the best places to live are suburbs, located outside large urban centers. These places have all the hallmarks of ideal places to buy a home and start a career—access to large legacy employers, good school systems, and proximity to the amenities of big cities. And with millennials starting to buy homes in the burbs, we’re guessing many of these places will have a bright future too.”

https://howmuch.net/articles/best-cities-to-live-in-every-state

#136 Midnights on 02.05.18 at 11:48 am

I told ya before Christmas to bail. – Garth
…lol
Never touched the stuff.
Crazy though, nothing backed by nothing except a greater fool.

#137 LivinLarge on 02.05.18 at 11:49 am

On top of Fearless Leader’s “either get help or DIY” comment, “It would be nice to find a way to get a fee-based advisor without being hit with the percentage-of-portfolio fees”…there is no difference in the end. It’s just how you visualize the expenditure for advice. It’s all just money and money is just numbers.

If you just fixate on the fee % then you likely think you pay a lot but no matter what you actually pay, it can always be displayed as a % of portfolio value. And if the fixed fee advice charge delivers an under performing return then the fixed fee becomes a higher % every year.

Would you whine if your mechanic said they had to charge you more for a brake job this year because your car is a year older? I think I would.

Paying a reasonible fee to a true, experienced professional to plan your trip through the financial mine field is a sentient plan. The fixed fee advisor has no skin in the game for your personal wealth accumulation. At least the % fee based advisor is always subject to losing everything you pay them if they gamble and lose with your wealth.

#138 Capt. Serious on 02.05.18 at 11:50 am

#128 Mike in Toronto on 02.05.18 at 10:46 am

It would be nice to find a way to get a fee-based advisor without being hit with the percentage-of-portfolio fees. Pay somebody a lump of money to help balance the portfolio, identify exposures, tax efficiency and opportunities to diversify. These things have tangible value to me, whereas a nebulous percentage-of-portfolio fee is difficult for me to justify.

And? If you want that it’s available. They’re called fee based planners. They work on an hourly fee basis, and depending on what you need, you would be looking at a few to 10s of hours. You should be able to find people in your area who work on that basis through the CFP org, but I would not work with anyone who does not have a CFA designation.
http://www.fpsc.ca/find-a-planner-certificant

Pay-for-some-advice advisors sound good but for most people are a disaster. Be careful. – Garth

#139 robert james on 02.05.18 at 11:59 am

It would seem to me that if the banks do not want to give a person a mortgage , going to a CU or loan sharks to get money is a really bad idea.. Interest rates going up , house prices probably coming down, are people really that stupid ?? I guess some are.. https://www.castanet.net/news/Business/218071/Mortgage-rejections-soar

#140 @POTUS My Tombs are bigger than Grants's on 02.05.18 at 11:59 am

Nothing much happening on the markets today.

If you need some entertainment check out “Dirty Money – The Confidence Man” available now on Netflix.

#141 technical analysis? on 02.05.18 at 12:00 pm

I told ya before Christmas to bail. – Garth
________________________________________

too bad you didn’t tell us all this time last year to buy…

Never buy a speculative asset. How many times do you need to be told? – Garth

#142 conan on 02.05.18 at 12:01 pm

Mr Market made it to lunch time without going into Grand Canyon mode.

The Trump Effect?

https://youtu.be/I0KrLaaCkPQ?t=5

#143 Old Ron the Realtor on 02.05.18 at 12:03 pm

Lotsa time on your hands, I guess… – Garth

______________________________________________

Time enough to read this blog I guess.

Just not too worked up about the Stock market. NY FED “Plunge Protection Team” has it covered.

AAPL (Apple) up 2% today, amid brutal sales predictions ??? I mean how many i-phones does it take to order a pizza ? Answer : 1, and everybody has 1 .

or How about AMZN (Amazon) A buddy of mine fills his mini van at Walmart and Costco, then sells the stuff on Amazon for more money. Sooner or later consumers will figure it out., but until then the stock is worth 300 x earnings. Got $1,446. USD to spare- then step right up and own a piece of a flea market.

As for Real Estate, it will be fine. Cause at the end of the day, you need some place to hang your hat. I helped out a friend who was laid up by sitting her Open Houses in December. New Builds south Scarborough. I was not inspired, and traffic was light. Wouldn’t you know they both sold this week for asking ($1.25 Mil)

Like I said Garth (the Venerable), No crash. No boom Goldilocks is finally happy with her porridge.

#144 Johnnyboy on 02.05.18 at 12:10 pm

#59 Smoking Man on 02.04.18 at 8:34 pm

#47 US Citizenship ? on 02.04.18 at 6:30 pm
Re: Post #98 on Feb.3,2018 by Smoking Man

“Kid I’m an old washed up drunk”

I believe that you recently stated that you have moved to the United States on this blog. That’s not exactly the type of qualifications that the US are looking for. How did you manage to emigrate to the US or are you keeping your Canadian residence and only living in Cali 182 days or less a year? I’m not affiliated with any gov’t or law enforcement agency, just curious as to how you pulled it off.
…….

Money has wings.
____________________________________
Yes and pigs fly! Go piggy, go. Please go and MAGA with your money.

P.S. Don’t ever return here we don’t need your anti-Canadian sentiment.

#145 conan on 02.05.18 at 12:19 pm

It would be nice to find a way to get a fee-based advisor without being hit with the percentage-of-portfolio fees. – Mike in T.O.

Don’t forget they need to have a nice down town office. Staffed exactly like an expensive Dentist would staff their office.

They need an excellent back office with on the money tax receipts that also have intergalactic tax efficiency.

I need to see this fee only person about 4 times a year, and I want them coming to my home.

They need to be available 24-7 for any and all financial problems that happen in my life. Regardless of the complications or work involved, I need to know that you will do this for me, for gratis.

Where the hell are these fee only people that will manage my millions for $79.99?

#146 M on 02.05.18 at 12:21 pm

..unless the machines go ka-boom..the slide will stop.
The final count down follows in the 3rd qtr.
Too much debt will implode the bonds, rates will explode and the market will go tits up 85-90%. Pada-boom will happen over a year or so.
This is not your regular “healthy correction”.
Too much debt. Pension funds go belly up…
Welcome to eastern europe 1995 (that yes…it was a financial crisis…even commies had that).
“western” narrative is different…for now…but it’ll allign with the facts.

#147 Rifles on 02.05.18 at 12:30 pm

Really? Taking comfort in the musings of a chartist inspires more fear than hope. Perhaps we could have a reading of the greater fool tea leaves later to see if they corroborate this information? LOL

#148 guru on 02.05.18 at 12:39 pm

Anybody hear multiple rumours about buyers forming groups to demand refunds on projects around the GTA in order to create a louder voice in getting partial refunds from developers as prices have gone down by 10-15% on newer releases?.

#149 fancy_pants on 02.05.18 at 12:44 pm

“Higher rates confirm a stronger economy” …

… or not. Venezuela has been running rate @ 21% for a number of years. Lots of muscles flexing in that economy. I hear anorexics are thriving there.

#150 The Technical Analyst, CSTA, CPD on 02.05.18 at 12:59 pm

Sorry, I would have responded sooner, but I have been busy moving money around to buy into the dip and seek out new positions.

Remember before you BUY into this or any dip:

ALWAYS WAIT FOR CONFIRMATION of a few days.

#151 n1tro on 02.05.18 at 12:59 pm

#30 Cindy on 02.04.18 at 5:07 pm
Toronto is resilient like Bitcoin—Its value will always go higher.
As of now, anyone investing in Bonds are at the losers’ table. $100,000 in Bonds purchased last year is now valued at $94,400. Invest in Toronto. Support our troops. Support gender equality. Support the rights of gays. Those are the best investments!
———————
Invest in Toronto – by buying overpriced real estate to pay double land transfer tax while being told what you can or can’t do with the property?

Support our troops – like sending them to afghanistan to die while getting rid of the taliban to watch the new government legislate in laws which continue the raping/killing of women.

Support gender equality – by putting women in positions of power just because of their sex on the premise of a mythical wage gap meme?

Support rights of gays – i havent kept up with Gay monthly, but what rights do non gay people have that gays dont right now?

———————-
#32 Cindy on 02.04.18 at 5:09 pm
Where did my comment go? Is it because I’m a feminist? How rude!
————————-
Note the time between posts. A whole 2 minutes and already being triggered.

#152 fancy_pants on 02.05.18 at 1:00 pm

hot off the press:
20% more mortgages are being denied by big banks, sending borrowers down the credit ladder

http://business.financialpost.com/real-estate/mortgages/new-mortgage-rules-sending-borrowers-down-the-credit-ladder-to-alt-lenders

#153 Fake News Again on 02.05.18 at 1:14 pm

#110 crowdedelevatorfartz on 02.05.18 at 7:43 am
@#96 Flake News
“it was the coldest Super Bowl on record by the way. Ha….Gotcha.”
++++++

Wow. A whole 52 years of weather records. That clinches it. Hundreds of years of worldwide meterlogical records mean nothing based upon the observations of “the coldest Super Bowl on record”.
Which by the way IS another odd weather occurance, another record of bizarre, huge, weather pattern swings all pointing to how skewed the wethaer Patterns are bcoming less and less predictable. Hotter summers, colder winters, heaviest snow fall, heaviest rainfall. Inevitably the world wide temps, precipitation measurments keep swinging violently year after year after year.
Trudeau’s kids will deal with a weather world gone mad while he focuses on gender equality and Trans Mountain pipeline…

Sorry Flake, your simplistic obstinance is boring me.

I no longer wish to engage in a battle of wits with an unarmed man.

____

Typical Lefty…….they “flee” the room when they have been bested……

#154 Smoking Man on 02.05.18 at 1:26 pm

This is coming to Ontario.

Home School them. If the hormones sentence dosent scar you do death. Then your insane.

http://dailycaller.com/2018/02/04/policy-let-kids-choose-gender-race-without-parents-knowledge/

#155 Stan Brooks on 02.05.18 at 1:35 pm

#130 Mattl on 02.05.18 at 10:57 am
Well ya, if someone has all of their net worth in their home that a losing strategy. Not sure how they would pay the upkeep in retirement, much less all the other expenses required when work income turns off.

I also think long term, middle class renters that have all their eggs in financial assets are going to be in trouble. In 25 years rents are going to be 25-60k a year. A renter will need over a million just to service rent payments. Or they will need to move to Mexico or Winnipeg

——————————-

Or they can move to Spain and live decently with half of that money.

Life in big Canadian cities makes sense only if you make more net than you spent and that is mission impossible for the average folks living there in the last 10-15 years.

So they persist driven by hope with reduced lifestyle, no kids, until they deplete savings/and that of their relatives and then move out.

Hope is a good book seller but bad strategy in a hopeless place.

#156 First Day Jitters on 02.05.18 at 1:40 pm

Steady as she goes, lads …… Powell’s got the mop now, and a plunger.

Wait till Garth capitulates, then buy.

#157 RentYVR on 02.05.18 at 1:52 pm

Hey, why did my post get blocked?

Misleading information from someone unqualified to dispense it. – Garth

#158 Stan Brooks on 02.05.18 at 2:02 pm

#131 IHCTD9 on 02.05.18 at 11:28 am

This is a Western Wealth effect, it’s going on all over the planet. Even new Canadians I know [who have 10 siblings] – have been here 20+ years, married here, and had kids here – ended up with 1-2 offspring, that’s it. It has to do with money yes – but lifestyle is just as important.

The above should drive fear into the hearts of government as aging demographics with a dearth of youth is a revenue and economic dead end. That’s why Canada is importing loads of 20-30’s youth trying to keep balanced. But these are exactly the folks who don’t want kids – they want money, and a lifestyle.

Think this is fixable? (not really)
Think this will increase taxation (yep – 100% guaranteed)

—————————-

Except that they are running out of fools to move here.

No one from Europe will move here at the moment, or from China or even India, hell even Iran, except non educated folks, or people from war torn countries.

There are no more doctors from India driving taxis in Canada.

Many of the new immigrants are temporary low skill workers getting residency.

And they come to the big expensive cities, can not afford kids etc.

Native Canadians can not afford kids either.

If country with high standard means that everything is so expensive so people ca not afford to reproduce and have kids while in supposedly third world countries like Turkey people have 5 and they can go to universities and find decent work after that..

Thank you, I think I will pass.

BTW I mentioned Turkey as there is currently migration back to Turkey from Canada and even US, I know quite a number of families going back.

#159 Penny Henny on 02.05.18 at 2:10 pm

#149 The Technical Analyst, CSTA, CPD on 02.05.18 at 12:59 pm
Sorry, I would have responded sooner, but I have been busy moving money around to buy into the dip and seek out new positions.

Remember before you BUY into this or any dip:

ALWAYS WAIT FOR CONFIRMATION of a few days.
//////////

Please let me know when it is safe to play again.
Sincerely Penny Henny

#160 Stan Brooks on 02.05.18 at 2:19 pm

BTW it was funny when Toronto submitted the bid for 2nd Amazon headquarter, low salaries in GTA were mentioned as a pro.

Considering current prices and salaries it seems Amazon engineers would need if Toronto is selected (negative chance due to many reasons) to compete with temporary labour from India for basement or multi-tenant dwellings, hell even garage dwelling!

Such a delusional place. sad, really sad.

#161 NoName on 02.05.18 at 2:37 pm

#131 IHCTD9 on 02.05.18 at 11:28 am

ended up with 1-2 offspring, that’s it. It has to do with money yes – but lifestyle is just as important.

—-

Life/keeping up with Jones was pleased there but coast of raising kids skyrocketed in last little while, probably in time when mother joined work force. If you google for cost goes as high as 250k per kid, and I remember reading that reusing special needs children cost as 10x more I don’t know how they come to that big multiplayer but when I think of it could be that much.

I know that this is not “cost” of reusing child but in last two years I probably give up 150k cad in ot because of baby sitting issues for my son. Anyway… If I think in terms of money I did get dealt very sheeti hand, but when I see all shenanigans we do around home i know we do good. Wife managed to donate some of her time.to salvation army last year. Have more kids people, and teach them not to vote __________(insert your word).

#162 Cottingham a bargain on 02.05.18 at 2:40 pm

Cottingham a bargain on 02.04.18 at 7:02 pm
Not sure where or who posted comment about “ selling begets more selling and buying begets more buying” but that’s what I hate about financial assets. It’s how quickly and violently they drop when the selling starts . And no one really knows the bottom.

Nice thing about RE even in the seemingly slow period we are in now and marginal price declines is if you don’t have to sell just take your peoerpty off the market and wait . Ya I know , Al Sinclair advice but kinda true.

You can sell financial assets in seconds. Real estate can take weeks, months or years. – Garth
————-

Yes true but on a day like today on the financial markets, I much prefer the illiquidity of RE you speak of as it keeps people planted and doesn’t give them the easy option to do something stupid ,unlike what financial asset investors are doing today .

Triplexs and quad plexs look better and better to me all the time

#163 Stan Brooks on 02.05.18 at 2:49 pm

This is getting embarrassing.

Steve Paikin, TVO ‘The Agenda’ Host, Accused Of Sexual Harassment By Sarah Thomson

https://ca.news.yahoo.com/steve-paikin-tvo-apos-agenda-152900968.html

I guess all married man are sexual harassers now, if they popped the question?

#164 jess on 02.05.18 at 3:07 pm

smokingman rlly the daily caller?

False prostitution allegations

In March 2013 The Daily Caller posted interviews with two women claiming that New Jersey Democratic Senator Bob Menendez had paid them for sex while he was a guest of a campaign donor.[23] The allegation came five days before the 2012 New Jersey senate election. News organizations such as ABC News, which had also interviewed the women, the New York Times, and the New York Post declined to publish the allegations, viewing them as unsubstantiated and lacking credibility.[24][25][26] Subsequently, one of the women who accused Menendez stated that she had been paid to falsely implicate the senator and had never met him.[24][27] Menendez’s office described the allegations as “manufactured” by a right-wing blog as a politically motivated smear.[28]

https://www.washingtonpost.com/politics/dominican-official-links-daily-caller-to-alleged-lies-about-menendez/2013/03/22/d81470d0-930a-11e2-8ea1-956c94b6b5b9_story.html?utm_term=.e6510abf24c1

Fox News controversy

In March 2015 The Daily Caller columnist Mickey Kaus quit after editor Tucker Carlson refused to run a column critical of Fox News coverage of the immigration policy debate.[32] Carlson, who also works for Fox, reportedly did not want The Daily Caller publishing criticism of a firm that employed him.[33] Journalist Neil Munro quit two weeks later.[34]

https://en.wikipedia.org/wiki/The_Daily_Caller

#165 Screwed Canadian Millenial on 02.05.18 at 3:07 pm

#159 Stan Brooks on 02.05.18 at 2:19 pm

Boy you said it.

Amazon would save $1.5B a year in salaries if new HQ in Toronto area: Ed Clark
http://www.cbc.ca/news/business/amazon-headquarters-clark-gta-1.4360079

What a joke this country is. I’ve never seen a so called developed 1st world country screw over its own people like Canada does. Canada deliberately keeps its people poor, broke and hopelessly mired in debt while they’re stuck working harder and harder for absolute crap tier wages all the while cost of living and taxes fly through the roof.

———-

Dow down 1000 points. Unreal. That GOP TAX SCAM bill sure is working its magic. The Trump economy is kicking into high gear now.

RIP

#166 Entrepreneur on 02.05.18 at 3:09 pm

The scientist in the 90’s said that they did not know what is going to happen next as in what kind of weather. The weather pattern has been interrupted or shifted. And one does not need to be a scientist to know that is what is happening. We see it through lifelong experience outside. And what we were taught when younger and we didn’t believe it but now we do.

I also believe we should refine our oil here in Canada because then we can see and control the outflow. Sending it to other countries is only turning a blind eye to the problem. And then when we see it we will move to other avenues.

#167 TorontoBull on 02.05.18 at 3:12 pm

@SM
“Expect a huge rebound in the morning.”
SM are you losing your predictive powers?

#168 april on 02.05.18 at 3:14 pm

$161 – He doesn’t get it, Garth.

#169 Headhunter on 02.05.18 at 3:18 pm

we have all noticed the explosion of dogs in the last few years. The new kids they are, as real kids.. your offspring are too expensive to have. But your house sure is nice.

“Except that they are running out of fools to move here.

No one from Europe will move here at the moment, or from China or even India, hell even Iran, except non educated folks, or people from war torn countries.”

truer words have never been spoken

#170 Doug in London on 02.05.18 at 3:46 pm

@Cottingham a bargain, post #161:
Do something stupid you say? What, like take advantage of this recent pullback to buy stocks or ETFs that are on sale now?

#171 LivinLarge on 02.05.18 at 3:47 pm

“Never buy a speculative asset. How many times do you need to be told? – Garth”….I think history has proven to us that some folks can never learn by being told. They just have to feel the hurt from sinking with the speculative asset for a while…sort of like dogs when you think about it. Not much point explaining something to a dog and expecting that they will absorb it…well, any dog but a pure bred English border collie.

#172 For those about to flop... on 02.05.18 at 3:52 pm

Hey NoName,since you’re on here I might as well thank you for sticking up for me the other day.

You’ve got language problems but there is absolutely nothing wrong with your heart.

Probably should thank Cloudy and Lost as well ,I just stayed out of it because I no longer respond to that poster.

There are organizations that seemingly won’t be satisfied until they tip upside down and shake the last dollar out of every British Columbians pocket and they don’t want people to share any information.

Yet they imply the information belongs to them and anyone who tries to share information is the bad guy…

M43BC

#173 Johnnyboy on 02.05.18 at 3:52 pm

#153 Smoking Man on 02.05.18 at 1:26 pm

This is coming to Ontario.
Home School them. If the hormones sentence dosent scar you do death. Then your insane.

http://dailycaller.com/2018/02/04/policy-let-kids-choose-gender-race-without-parents-knowledge/
________________________________________
WTF do you care “Little Smoking Turd Man”. You don’t live in Ontario let alone Canada anymore. You left, gone, vamoose, sayonara. So do yourself a favour and stay the [email protected]*k out of incursions that no longer pertain to you by putting your unbalanced cerebral twist on them. Now if you wish to make a dictum on the market or the weather in Liberal Cali go ahead.

#174 jess on 02.05.18 at 3:52 pm

affordable?

https://www.therecord.com/news-story/8109535-study-highlights-a-downside-of-the-lrt/

#175 Stone on 02.05.18 at 3:57 pm

Garth, I think the blog post you put out tonight will be very interesting and somehow related to market volatility. I pity the fool not in a balanced and diversified portfolio at this time.

I wrote that blog yesterday. – Garth

#176 morrey on 02.05.18 at 4:03 pm

dropped again on Monday. a good sign

#177 Penny Henny on 02.05.18 at 4:03 pm

dow down 1178 pts

how many bought the dip this morning?

#178 Russ on 02.05.18 at 4:07 pm

For Toronto Bull.

Smoking Man still correct.

You have the wrong morning.

#179 Screwed Canadian Millenial on 02.05.18 at 4:08 pm

#11 Smoking Man on 02.04.18 at 3:13 pm
Expect a huge rebound in the morning. No reason for the market to be selling off. The effects of lowering of personal and coporate taxes hasen’t even hit the engine yet.

——————–

DOW TANKS 1200

Jesus Christ Smokey.

You got any more of those herdonomic predictions? I want to make some money on the inverse.

#180 Blackdog on 02.05.18 at 4:35 pm

WOW! What happened to the DOW? I thought “Smoking Man” said it was going to rebound today.

#181 paul on 02.05.18 at 4:47 pm

#172 Johnnyboy on 02.05.18 at 3:52 pm

#153 Smoking Man on 02.05.18 at 1:26 pm

This is coming to Ontario.
Home School them. If the hormones sentence dosent scar you do death. Then your insane.

http://dailycaller.com/2018/02/04/policy-let-kids-choose-gender-race-without-parents-knowledge/
________________________________________
WTF do you care “Little Smoking Turd Man”. You don’t live in Ontario let alone Canada anymore. You left, gone, vamoose, sayonara. So do yourself a favour and stay the [email protected]*k out of incursions that no longer pertain to you by putting your unbalanced cerebral twist on them. Now if you wish to make a dictum on the market or the weather in Liberal Cali go ahead.
—————————————————————–
Oh Jonnyboy You protest to much? But then considering your– oh never mind!

#182 follow the money on 02.05.18 at 4:48 pm

Sure, markets were due for a pull back. Losing 10% in a week is not just a pull back, it’s a disaster.

Where’s the money going? My bet is that the Dems gave out the memo to their bank buddies to sell off or else. The Dems crashed the markets in ’08 / ’09 to usher in the age of the Obama. Their hero from out of nowhere who would stop climate change, reduce the carbon and just about bring back the Dodo.

None of that can be controlled by any of us. We can only go with the flow. But I’ve seen this script play out only 10 years ago and to some extent in ’89 and early 2000’s. Does it have to always be the same bullshit?

Everyone is now in the market. There is no place to hide at this point. So where are the funds going that are leaving the market? Bonds are stalling and reversing a bit. Maybe that’s the intention as per usual. But do they have to let the markets go to that extent?

Just rebuilding from today will probably take all year. Gave the Missus and the kids already the order to stop all spending and planning of vacations this year. Stock up on canned beans, rice and pastas. Cut up all but one credit card and reduce the data usage on the phones.

Cancel club memberships by Friday and start selling the bling in 2 weeks if this trend doesn’t reverse!

What a shit show!

Exaggerate much? – Garth

#183 irent2018 on 02.05.18 at 4:50 pm

Hi Garth,

If I don’t have cash in hand to invest, is it wise to use LOC to invest.

Thanks!

#184 Cottingham a bargain on 02.05.18 at 4:53 pm

#167 april on 02.05.18 at 3:14 pm
$161 – He doesn’t get it, Garth.
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April, I get it, I’ve gotten it and have it in abundance .

#169 Doug in London on 02.05.18 at 3:46 pm
@Cottingham a bargain, post #161:
Do something stupid you say? What, like take advantage of this recent pullback to buy stocks or ETFs that are on sale now?
————

No Doug , but shopping for more doors also on sale. How about you ?

#185 Millmech on 02.05.18 at 5:06 pm

#164 SCM
I’m starting too buy,good to see everything on sale,interest rates are heading up too.Woohoo loving it!
Loving it!!!

#186 Tater on 02.05.18 at 5:23 pm

#178 Screwed Canadian Millenial on 02.05.18 at 4:08 pm
#11 Smoking Man on 02.04.18 at 3:13 pm
Expect a huge rebound in the morning. No reason for the market to be selling off. The effects of lowering of personal and coporate taxes hasen’t even hit the engine yet.

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DOW TANKS 1200

Jesus Christ Smokey.

You got any more of those herdonomic predictions? I want to make some money on the inverse.

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Smokey is a putz. He seems to have confused his tech role on a trading desk for actually sitting in a big boy chair.

#187 Janusz Onyszkiewicz on 02.05.18 at 5:29 pm

Welcome to The Show Muppets! It has just began. Maybe Kermit has some advice for us? Oh please wise Kermit, tell us what to do???!!! Please!

#188 El Joko on 02.05.18 at 5:32 pm

I presume today’s post will be titled “Mark of the Beast gains 76%, please look up before walking down sidewalks on Wall Street”?

#189 young & foolish on 02.05.18 at 5:55 pm

… get ready to catch a falling knife blog dogs … hehe

#190 crowdedelevatorfartz on 02.05.18 at 8:04 pm

@#152 Flake News
“Typical Lefty…….they “flee” the room when they have been bested……”
+++++

Lefty?
Bwahahahahaha.
No just a person with the ability to reason unlike the brainwashed parrots out there in Fake News Land.

I was busy today at work.
Clinching the 6th huge contract of 2018 for the company.
I’ve locked in more money in contracts in the last 5 weeks than the useless slob that preceded me all last year.

Lefty……ahahahahahahahahahahahahahahahhaa

#191 Doug in Port Hope, not London on 02.06.18 at 4:44 pm

@Cottingham a bargain, post #184;
How about me? I scooped more ENB and PPL at fire sale prices yesterday and today. I don’t have any need for doors, I have enough to keep the heat in while I search the stock market in comfort for more bargains.