Why 60/40

RYAN  By Guest Blogger Ryan Lewenza

All it took was a bit of volatility and a 10% market correction to wake investors up from their low volatility induced stupor. Well a “bit of volatility” is maybe downplaying what we’ve witnessed in recent weeks with the VIX or “fear index” rocketing higher from a near historical low of 9 in early January to a peak of 37 in early February. And with the spike in volatility and market correction, out come the doom and gloomers once again peddling their fear based prognostications of an imminent bear market and further market carnage. Not surprisingly we’re fielding some queries from clients on whether our recommended asset mix of 60% in equities and 40% in fixed income is still appropriate in light of this increased volatility. The short answer is yes, and in this week’s post we examine some of the inputs and analysis that goes into our preferred 60/40 asset mix.

Let’s start with a review of bear markets to see how the 60/40 portfolio performed versus the TSX and other portfolio models. Using the S&P/TSX Total Return Index and the FTSE TMX Canada Universe Bond Index we analyzed portfolio returns in the four last major bear markets of 2007, 2000, 1990 and 1980.

On average the 60/40 portfolio declined 20% peak-to-trough in the last four bear markets, roughly half of the 38% average decline in the TSX. A 50/50 and 40/60 portfolio declined 15% and 10%, respectively.

So of course even with a balanced or conservative portfolio they will decline during bear markets, but as you can see the declines are far less severe than an all equity investor.
Now you may be wondering why not just move from a 60/40 to a 40/60 portfolio ahead of the bear market to reduce the potential downside. While we may tweak the 60/40 asset mix if we believe a bear market is coming, we generally will stick with the 60/40 asset mix since we recognize how difficult is to perfectly time the markets as it requires you to get both the sell and buy just right. For this reason we recommend investors stick with their long-term or strategic asset mix over time.

Performance during Bear Markets

Source: Bloomberg, Turner Investments

Below we show the last two bear markets of 2007 and 2000 to better illustrate how these different portfolios hold up much better than the overall TSX.

Performance for the 2007 and 2000 Bear Markets

Source: Bloomberg, Turner Investments

The second thing I looked at was how long it took to get back to even following a bear market. In the table below I show that on average it took the TSX 24 months to get back to even following the bottom of the bear market, versus 10.5 months for our preferred 60/40 portfolio. For the 50/50 and 40/60 portfolios they were back at even quicker at 9 and 6 months, respectively, since they declined far less during the bear market.

This is another factor supporting our preference for a 60/40 balanced portfolio

Number of Months to Get Back to Even

Source: Bloomberg, Turner Investments

Finally, I looked at historical returns with the analysis in the table below. Since 1980, the TSX has returned on average 10.2% annually, just above the 60/40 at 9.8%. However, this was during a time of record high interest rates, which then consistently declined helping to deliver nice capital gains for bonds. Well, those days are long gone and we see much lower rates of returns from bonds over the next decade.

I believe returns will be more consistent with what we’ve witnessed since 2000, with the 60/40 portfolio delivering an average annual return of 6.9%. The 50/50 and 40/60 portfolios returned 6.7% and 6.6%, respectively over this period.

Given our expectations for lower bond yields over the next decade we see the 50/50 and 40/60 portfolios delivering lower returns going forward of potentially 6.4% and 5.8%, respectively.

Historical and Future Portfolio Returns

Source: Bloomberg, Turner Investments

Wow, that’s a lot of data and analysis to take in. Here are the key takeaways:

  • The 60/40 portfolio declines far less than the TSX in bear markets which better helps investors control their emotions and stay committed to their long-term financial plan
  • The 60/40 model gets back to even far faster than the TSX but not as quick as the 50/50 and 40/60 models
  • The 60/40 portfolio has and should continue to deliver long-term returns of 6.9%, which is better than the 50/50 and 40/60 models but should return less than the TSX over the long-run

Put it all together, readers and clients, stick with the 60/40 asset mix for now and over the long-run!

Ryan Lewenza, CFA,CMT is a Partner and Portfolio Manager with Turner Investments, and a Senior Vice President, Private Client Group, of Raymond James Ltd.

 

138 comments ↓

#1 ww1 on 02.17.18 at 1:37 pm

https://www.weforum.org/agenda/2018/02/real-estate-bubbles-the-8-global-cities-at-risk

What else is there to say?

Your comment is awaiting moderation.

#2 For those about to flop... on 02.17.18 at 1:40 pm

Weekend Rewind.

This week in howmuch articles.

Bit of a light week,perhaps they were busy commuting from Mission to Surrey…

M43BC

Visualizing Why Banks Hate Cryptocurrencies

https://howmuch.net/articles/banks-vs-cryptocurrencies

Comparing Mexico’s Remittances to Every Other Country.

https://howmuch.net/articles/outgoing-remittances-from-usa

#3 Shawn on 02.17.18 at 1:48 pm

Thanks for the great post Ryan.

For individuals with a DB pension do you recommend sticking with a 60/40 portfolio or can these lucky folk take more risk with their investments? Conversely, could they even play it safer?

While I have a lay understanding of bonds and equities I have a hard time understanding preferreds.

#4 Screwed Canadian Millenial on 02.17.18 at 1:52 pm

ScotiaBank economics: There is little evidence to suggest a #minimumwage impact on jobs in Ontario, says #ScotiabankEconomics’ @JM_HerreraB. Job losses not concentrated in ‘minimum–wage’ industries.

https://twitter.com/ScotiabankViews/status/964603931820285953

Is ScotiaBank a bunch of socialists now?

Looks like I was right again and the pro-poverty, anti-worker crowd was wrong.

Remember boomers, facts don’t care about your feelings.

#5 Pears Morgan on 02.17.18 at 1:54 pm

Bonds return nominal, not necessarily real returns, after adjustment for inflation.

They fall when interest rates rise, i.e. now.

But what is the point of buying bonds when underlying currency is melting down?

https://ca.yahoo.com/finance/news/why-loonie-falling-doing-130104763.html

Suddenly over-indebted countries who tax over-indebted households will become rich and will start paying real returns instead of using central banks as buyers?

https://ca.yahoo.com/finance/news/why-loonie-falling-doing-130104763.html

And why would successful companies sitting on cash issue bonds at higher rates?

Your portfolio statistics does not account for the peak debt situation we have now. Bonds provided past returns from times when debt was accumulated.

The only way for TSX to provide 9 % returns in the future is high inflation.

#6 Stan Brooks on 02.17.18 at 2:01 pm

#1 ww1 on 02.17.18 at 1:37 pm
https://www.weforum.org/agenda/2018/02/real-estate-bubbles-the-8-global-cities-at-risk

What else is there to say?

——————————

So we are number 1 in insanity?

How surprising. There is much, much deeper hole to dig in order to utilize all that accumulated stupidity.

Something to be proud of. In addition to the most moronic and corrupted liberal government and the invention of transgender washrooms.

#7 D.D. Corkum on 02.17.18 at 2:04 pm

Personally I view 60/40 as a rule of thumb that needs to be tailored to the individual’s risk tolerance. Circumstances may dictate leaning toward greater or lesser risk: age, planned expenses, relative job security, etc.

Scenario A: you are getting older, this is your only nest egg, and you are in a precarious position with your employer where you could very well be laid off or asked to retire early. It might be prudent to go over-weight the safe stuff, and lean toward 50/50.

Scenario B: you are young, with reasonable debt load and no major expenses in the next few years, performing well at a stable job with the promise of a defined-benefit pension, and the pension fund is adequately funded. You could arguably do just fine increasing toward 70/30.

Most people fall between these extremes, for most of their working-age life. So for most people, 60/40 isn’t a bad rule of thumb.

Notice none of my scenarios include timing the markets; all of the factors I mentioned are reflecting personal circumstances rather than market ones.

#8 Buddy on 02.17.18 at 2:05 pm

Can we get a recap of what comprises the current asset mix in the 60/40 portfolio? I’m interested more so in the allocation to bonds and preferred shares, as a percentage of the portfolio.

And second question – how do you protect against the possibility, yes its still a possibility that should at least be acknowledged, that interest rates will continue downwards and continue the decades long trend of interest rates declining (some might even say its a much longer trend if you look at historical interest rates over 100+ years).

#9 Blacksheep on 02.17.18 at 2:07 pm

Screwed # 189,

“1 word.

You guessed it.

BOOMERS”
———————
Enough already….

Generational cycles have being playing out like this for many centuries in North America.

Sample:

When little susie, (a millennial child) never understood why crazy great Grandma hoarded all that: Canned / jarred food, rubber bands, news papers, firewood and any clothes or shoes she could get hold of, all in her old root cellar?

Ole Grandma lived through, the Great depression….

If I you or I experienced the extreme hardship like she did, I can guarantee we would look the current wasteful existence we all enjoy (even those struggling) with great disdain.

Once you understand whats happening it all becomes so bloody obvious, you will stop blaming anyone for what is simply the cycle of a flawed human condition.

Unfortunately what comes next in the cycle, is not good and will leave it at that.

“The Fourth Turning”

Strauss & Howe circa 1997.

https://en.wikipedia.org/wiki/Strauss%E2%80%93Howe_generational_theory

#10 Mark on 02.17.18 at 2:09 pm

Its worth noting that bonds have been in a huge bull market since 1980. The response of policy makers since the early 1980s in response to economic slowdowns has been to lower short-term interest rates. The result of the inverse relationship between yields and bond prices. Thus when the stock markets fell, as they did in various episodes over the past 38 years, the bond market almost always rose as investors sought the apparent ‘safety’ of bonds.

Intuitively, what happens to the numbers if we model a long-term bond bear market into the equation?

Do any advisors in the financial planning community even conceptually understand what a long-term bond bear market looks like these days?

Are regulations around KYC and risk tolerance setting up managed investors for failure by inducing them into ever-increasing bond allocations in response to diminishing levels of stated risk tolerance?

Garth reminded us yesterday (or the day before) that bonds (and GICs, which are bonds by a different name) are severely overweighted in the self-directed “portfolios” of Canadians. Their previous behavior in reducing portfolio volatility aside, is piling into an already overweighted asset class not just asking for failure?

#11 mark on 02.17.18 at 2:12 pm

Ryan,
Nice article, what did a all equity Global Diversified portfolio return, yes I know not a good a idea, but alot of us are wondering!

#12 Mark on 02.17.18 at 2:15 pm

“The only way for TSX to provide 9 % returns in the future is high inflation.”

The TSX trades at roughly 15X earnings at the moment, which is in line with historic averages. The E/P is thus 6.7%. Usually the TSX can capture nominal economic growth at a rate of roughly 4% annually. So current valuations imply a rate of return of roughly 10.7%.

So 9% is a very conservative planning assumption at current valuations, is beneath the TSE/TSX index’s long-term average return, and an acceleration in inflation is not required to achieve such return. Of course, short-term returns could be considerably higher or lower due to multiple expansion — the TSX Composite has numerical earnings similar to the Dow, but trades at a 40% discount.

#13 Yanniel on 02.17.18 at 2:20 pm

Hi Ryan,

Could you share with us your thinking about Momentum Investing. I have been reading about this lately and it seems to be is very well acepted by the academic financial community.

In particular, there is a model known as Dual Momentum Investing which offers better returns while controlling the risk. This model allows you to limit the bloodbath in bear markets.

I know you put food on the table by using a different investing approach. I am not asking you to advocate one over the other. I would just simple appreciate your take about Momentum Investing. Thanks.

For reference. Just take a look at this numbers: https://www.optimalmomentum.com/gem_trackrecord.html

#14 Loonie Doctor on 02.17.18 at 2:25 pm

Thanks for the great analysis Ryan. The 60/40 split seems like the best compromise between volatility and still getting decent returns overall.

I am admittedly only about 70/30 with the 30 comprising of preferred shares (20%) with some REITs (5%) and High Yield Bonds (5%). I do plan to slowly change that over the course of the year by adding more of the safer bonds of various stripes to get the 60/40 mix . Honestly, you guys have converted me. I started even very aggressive when I was younger (100% equities) and have gradually phased into my current state. I am now getting to a stage where I don’t need to take as much risk to achieve marginally higher returns (I will hit my retirement/lifestyle targets no problem) and having preservation of capital along with some growth is more important. There is something to be said about not aggressively continuing to play the game and risk it when you’ve already “won”.

The 60/40 split seems the best balance overall for the vast majority of people. However, I also think that there is some room for variation depending on goals, age/income (ability to take risk), and self-discipline (to not deviate from the plan for emotional reasons). We all think that we are self-disciplined, but it easier to be so when you have more capacity to recover from risks that go bad making fear a bit less powerful.

Thanks again for sharing your insights and expertise with us. I found your comments about the future returns potentially being a bit different with rising interest rates particularly helpful. My struggle with that has been part of why I have been underweight bonds still.

#15 BS on 02.17.18 at 2:33 pm

You cite the 60/40 past performance but that is when the 40% is all bonds. Not 20% bonds and 20% prefs. Prefs tend to tank in major corrections like stocks. I do agree it is may be better to be in rate reset prefs now over bonds with rates rising but they will not have the same negative correlation when the next major bust happens.

You also have to consider what your return was prior to the correction. In the last correction my bonds were down year over year and then went down a bit more. My stocks were up year over year even after the correction they were still up double digits. I know it doesn’t always work that way but bonds right now have little upside and a head wind with rising rates. Bonds may go up in the next major correction but if they are trending down over the next few years you may end up worse off even after the next bust. Net return is more important than less volatility if you can stomach it.

#16 Ed. on 02.17.18 at 2:34 pm

#183 VICTORIA TEA PARTY on 02.17.18 at 11:36 am
#161 Ed.

I wrote what I meant and meant what I wrote.

“Despatch” was a written military communcation, for exmple, that would have been sent from WW1 trenches to field HQ.

The word “dispatch” is usually employed when one person sends another person to do something. That could include you, for example, being sent by a nearest and dearest to go and buy a multicoloured hot water bottle on a dark and storm night.

Commas are in their correct places.

God is good.

_—————–

That really stings. You are almost correct, and I had to look this one up. Brits do occasionally use “despatch”, but only as a noun meaning the act of sending. Are you, and did you? Also, spell-checking is next to Godliness.

“Used properly, commas make the meaning of sentences clear by grouping and separating words, phrases, and clauses.”

Bad example #2 :

“I also hope that if literacy was an impediment there was someone familiar with the English language, beyond the Twitter Space, who got her through the contract details and that she knows the new responsibilities upon which she has embarked to God knows where.”

Where was the impediment? There?
Whose literacy? Hers?
“beyond the Twitter Space” is not a clause here.
“Responsibilities” cannot be embarked upon.

If you wish to criticise writing proficiency, learn the lingo first. Humour takes practice and devotion.

God is unreal.

#17 Screwed Canadian Millenial on 02.17.18 at 2:47 pm

#9 Blacksheep on 02.17.18 at 2:07 pm

Boomers are not the generation that lived through the Great Depression. Boomers were born between 1946-1964. They inherited the Golden Age of the middle class (thank you FDR) and absolutely p*ssed it away for future generations with not a concern in the world when it comes to the state of the economy, debt, wages, labour market, environment, air & water quality, pollution levels, national sovereignty, crap tier trade deals, wars, social cohesion, planet, I could go on. They wanted their tax cuts and big spending and plundered away vital public assets and resources. They are absolutely the worst generation to have ever lived and Gen X isn’t much better. They know how bad things are for millennials and gen z and they just don’t care.

2/2

#18 For those about to flop... on 02.17.18 at 2:56 pm

pm
Flop I appreciate everything you do for the blog. The stats are informative and helpful to get a sense of where things really stand.

If people don’t like your stats perhaps they should just skip them?! Very odd someone would take the time to post negative comments for no reason.

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

Thanks

Perhaps the most bizarre claim is that my links are useless.

Each Pink Snow post usually contains three links.

A Zolo link to confirm the new asking price, or if sold the date of the sale while we wait for confirmation.

A B.C assessment link to confirm when and how much the seller paid ,and for a CONFIRMED PINK SNOW post it shows the final results.

A link to The Terry Fox Foundation to anyone who wishes to make a donation as a way of showing appreciation for the effort that I make.

I get hate mail but the encouragement and the appreciation that people express to me far outweighs the negative feedback,although if they give constructive criticism I try to accommodate this into my posts.

I get tonnes of suggestions and it’s hard to keep everyone happy.

I’ll keep trying to make the impossible possible…

M43BC

#19 Ca$h money on 02.17.18 at 3:02 pm

Ryan I was looking at preferred shares during the 2008 crash and it appears to me that they are just as volatile as stocks dropping in similar amounts. Do you have any analysis that supports that preferred shares are less volatile and ‘safer?

I was looking at preferred ETFs when I saw how volatile they Are.

#20 mark on 02.17.18 at 3:25 pm

Screwed Canadian Millenial on 02.17.18 at 2:47 pm

Hey Screwed just wanted to say thanks for funding my retirement :)

#21 Andrew Woburn on 02.17.18 at 3:27 pm

#18 For those about to flop… on 02.17.18 at 2:56 pm
Perhaps the most bizarre claim is that my links are useless.
===============

Maybe eyes wide shut, possibly factophobia. The rest of us are fans.

#22 McLovin on 02.17.18 at 3:29 pm

Your prediction for 60/40 going forward is 6.9% vs 5.8% for 40/60. But what about the effects of volatility and investor behaviour to stay the course. How do the 60/40 vs. 40/60 compare in terms of standard deviation, downside capture, and risk to return (Sharpe)? Many investors would probably be more comfortable over time in a 40/60, and it would be a much smoother ride up.

#23 Karma on 02.17.18 at 3:31 pm

Good lecture on the difference between “Justice” and “Social Justice”.

https://www.youtube.com/watch?v=xkDMVdEci4Q&t=651s

#24 Lost....but not leased on 02.17.18 at 3:31 pm

#18 Flop…

A lot of us have your back….forget the trolls…Keep up the good work.

Suggestion..rather than Pink Snow..perhaps look at “melting snow”price rises up the Valley.

It seems Non Foreign buyers are flocking there(Garth’s Last Post). Andy Yan had a graphic showing the spread of “$I Million” properties going east to Chilliwack.

IMHO, that is the warning sign of a desperate (and soon to collapse) market.

#25 Stan Brooks on 02.17.18 at 3:32 pm

#10 Mark on 02.17.18 at 2:09 pm

Do any advisors in the financial planning community even conceptually understand what a long-term bond bear market looks like these days?

——————————————–

The plan on forever bull market with ZIRP. So your negative yielding bonds become more expensive as the nominal interest rates dives deeply into the negative territory . So you have ‘capital gains’ by buying a bond today for $ 100 that will give you back $ 90 ten years down the road as if you buy it tomorrow as then it will give you only $ 80 10 years from now.

Crazy, eh?

———————————

#12 Mark on 02.17.18 at 2:15 pm
“The only way for TSX to provide 9 % returns in the future is high inflation.”

Russian oil companies have P/E of 6.
and yet nobody is buying them.

TSX has and will under-perform due to:

1. lack of interest by foreign investors due to idiotic monetary policies, and the weak loonie.
Do you believe that a serious foreign investor will consider a country run by the likes of T2, wild bill,
the poloz, (higher taxes and regulations are actually pretty certain) and the uncertainty that they bring?

Our protected by the media finance minister, who never created a business but inherited his dadyy’s one is sitting like a deer in headlights and is unable to even comprehend the impact of US tax cut on Canada.

2. Indebted population that has no money to invest, with indebted consumer and higher taxes who impact profits and investors as well.

Risk/profit for Canada is very, very negative at the moment.

You will earn some money in depreciating currency if you invest in TSX, so what?

Why not buy Chinese stocks, their economy grows 7 % and the yuan straightens against the loonie?

Note the divergence of the loonie from WTI prices and emerging correlation with dirty oil that is worth less and less.

#26 Stan Brooks on 02.17.18 at 3:35 pm

#19 Ca$h money on 02.17.18 at 3:02 pm

Hedge stock market with gold.
Forget about bonds and TSX

90 % stocks and 10 % gold stocks.
Period.
It has worked marvelous for me.

#27 Andrew Woburn on 02.17.18 at 3:35 pm

“Neither carrots nor sticks have swayed China as predicted. Diplomatic and commercial engagement have not brought political and economic openness. Neither U.S. military power nor regional balancing has stopped Beijing from seeking to displace core components of the U.S.-led system. And the liberal international order has failed to lure or bind China as powerfully as expected. China has instead pursued its own course, belying a range of American expectations in the process.”

US governments are obsessed with the belief that every other country wants democracy and Coca-Cola while many just want Coke. It’s sort of like how the Soviets believed the workers of the world wanted communism.

US style free trade only works if the other players agree on the rule book. In my view this is the real problem with western concepts of globalized trade. China won’t play the game we expect it to.

https://www.axios.com/the-failure-of-americas-china-policy-1518874526-3e174bd7-d2ac-417f-ae42-473c9079728e.html

#28 crowdedelevatorfartz on 02.17.18 at 3:36 pm

@#4 Simplistic Churlish Mandate
“Remember boomers, facts don’t care about your feelings.”
++++++
Horrors!
In this touchy feely world of “peoplekind”.

Remember SCM, boomers dont care about your feelings

#29 Blacksheep on 02.17.18 at 3:43 pm

Screwed #17,

#9 Blacksheep on 02.17.18 at 2:07 pm

Boomers are not the generation that lived through the Great Depression. Boomers were born between 1946-1964.”
———————————
What? Never claimed they did.

Didn’t read enough of the supplied link, before you assumed you new what it was about, did you?

How do I know?

Cause every word you typed in your last post, misses
the mark by a friggin mile. I was only trying to share what I see, as some insights.

No need to respond, you clearly have no interest in opening your mind to the possibility, that you don’t already know everything.

#30 Nikita on 02.17.18 at 3:47 pm

Hello, I have just recently started reading your blog as recommended by a patient of mine who has created his own self directed portfolio and earned 12% returns last year, beating the market trend.

The hour I spent with this gentlemen gave me the impression he was smart and knew how to invest wisely. He inspired me to learn more about the stock market and I quickly realized I knew nothing.

Your blog has helped me grasp the idea of investing and making profit however with this predicted bear market approaching is it still a good idea to start investing into the stock market.

Currently have 40,000 in savings accounts at 23 yrs old, debt free and a paid off 2015 car. My spouse and I do not plan on buying a house in this market and are content saving/investing are money while renting. We just want to make smart choices and be confident in our investments.

Any advice from anyone would be greatly appreciated.

#31 Mike in Airdrie on 02.17.18 at 3:58 pm

Thank you for this Ryan. Very useful and timely information. Much appreciated!

#32 JSS on 02.17.18 at 4:00 pm

It has been nearly ten years since I purchased a series of dividend growth stocks – mostly Canadian and some US.

Dividend growth stocks are mostly in the following: RBC, CN Rail, TD bank, P&G, McDonald’s, Sunlife, Enbridge, and Fortis.

My observations have been:
– I have experienced low volatility similar to a balanced series of stock and bonds
– dividend income has grown between 6-8% annually
– not that much growth potential as most of the individual stocks I own are mature companies
– I sleep well at night
– none of these companies cut their distribution in 2008/2009 meltdown

I used to own dividend growth etfs and had expected that the distributions would grow annually. However, the distributions would be up one month, then down another month, and so on. By owning separate dividend growth stocks, I have spreadsheets that show straight forward growth.

#33 For those about to flop... on 02.17.18 at 4:04 pm

CONFIRMED PINK SNOW.

These guys got more than what they paid but it wasn’t enough.

The details…

Paid 1.8 March 2017

Sold 1.85 September 2017

And so just a small dusting of Pink Snow resulting from a quick turnaround.

With the remaining expenses and a little for opportunities lost ,probably fair to say this was a 65k mistake…

M43BC

2863 Southcrest Drive, Burnaby. Paid 1.8 March 2017 ass1.70 sold September 18

Oct 15:$1,998,000
Jun 17: $1,950,000
Change: – 48000.00 -2%

https://www.zolo.ca/burnaby-real-estate/2863-southcrest-drive

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

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

Feel free to make a donation.

Flop For Fox Fund…

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

#34 Andrew Woburn on 02.17.18 at 4:05 pm

If you know more about cryptocurrencies than this guy, go back to sleep.

“Ethereum founder warns cryptocurrencies ‘could drop to near zero at any time'”

https://flipboard.com/@flipboard/-ethereum-founder-warns-cryptocurrencies/f-3ff86ccb53%2Fbusinessinsider.com

#35 MF on 02.17.18 at 4:05 pm

Lol. Just lol. The markets have been so accustomed to “stimulus” that if they happen to go down for a day or two everyone believes it’s a buying opportunity and calls it a “correction”.

Stocks only go up post 2008, didn’t you know?

The reason the doomers come out during periods of volatility is because the artificially induced bull is old, history is NOT on its side, and the level of complacency is a hilarious joke.

When the next bear hits, and it will, a lot of people will be upset balanced or not.

MF

#36 Pay Attention on 02.17.18 at 4:11 pm

The portfolio mangers that work with Garth have explained all over the months with facts and great accuracy. You who complain were not paying attention and lost out with a balanced portfolio going forward.

#37 crowdedelevatorfartz on 02.17.18 at 4:23 pm

@#17 Staked Christlike Martyr
“Boomers are not the generation that lived through the Great Depression. Boomers were born between 1946-1964. They inherited the Golden Age of the middle class .
++++++++

Actually.
Once again. You’re historicly biased agenda is wrong.
The generation born in the late 20’s early 30’s was dubbed “The Golden Generation”
The Parents of Boomers
They were too young to really remember the Great Depression. Too young to go to World War II. Young enough to have full employment after the war….for life.
The old joke was “If you had two feet and a heartbeat…you had a job for life”.
So, with full employment, WWII over, and jobs, jobs jobs they had babies, babies and more babies.

The beloved, much maligned, Boomers

#38 Ryan Lewenza on 02.17.18 at 4:28 pm

Shawn “Thanks for the great post Ryan. For individuals with a DB pension do you recommend sticking with a 60/40 portfolio or can these lucky folk take more risk with their investments? Conversely, could they even play it safer? While I have a lay understanding of bonds and equities I have a hard time understanding preferred.”

Even with a DB pension we would recommend the 60/40. For us it’s the sweet spot of decent returns and lower volatility. But you can have a higher equity weight in your TFSA. We tilt those accounts more towards equities, usually with 70-80% in equities, and a smaller weight in prefs and bonds. Preferreds are pretty straight forward. The main reason you buy them is for their dividend income rather than capital gains. There are two types – fixed resets and perpetuals. Perpetuals pay a fixed dividend in perpetuity while fixed resets pay a set dividend for 5 years then they are reset. If rates are higher on the reset date the dividend is increased. If rates are lower then the dividend is reset at a lower rate. Basically preferreds are all about those 4-6% dividend yields. – Ryan L

#39 Ryan Lewenza on 02.17.18 at 4:34 pm

Buddy “Can we get a recap of what comprises the current asset mix in the 60/40 portfolio? I’m interested more so in the allocation to bonds and preferred shares, as a percentage of the portfolio. And second question – how do you protect against the possibility, yes its still a possibility that should at least be acknowledged, that interest rates will continue downwards.”

Currently we’re at 15% in prefs, 23% in bonds and 2% cash. If rates continue to decline then our 23% weight in bonds will do well since as rates decline bond prices rise. But this would then weigh on our preferred shares which are driven by the 5-year GoC bond yield. That’s the beauty of investing in different assets. Generally one asset class is always working. – Ryan L

#40 mark on 02.17.18 at 4:38 pm

Some dont have the funds/money or started late and have no use for a balanced portfolio.
Some are in our 20’s.

There risk is no money in later years.

We need a detailed example of a Global All Equity Portfolio!! For maximum returns, screw volatility with the reality it may take 5 years for our all equity portfolio to come back to even. Give a Maximum Return Portfolio example i ask.

Bring it on!

#41 For those about to flop... on 02.17.18 at 4:42 pm

CONFIRMED PINK SNOW.

Well ,this one worked out worse than I thought it would but that why I follow up to see the end results.

The details…

Paid 2.99 March 2016

Sold 2.64 January 2018

It is probably better for someone else to forensically dissect this one ,but it is by the basic math that I usually employ to keep things simple a 550k mistake after known expenses and a little for opportunities lost.

Assessment of 3.17 counted for little in this case.

Shock and Thaw…

M43BC

Sold on November 10th 2017

5930 CONDOR PL WEST VANCOUVER paid 2.99 ass 2.92 2017 ass 3.17

Sep 14:$3,288,000
Oct 20: $2,998,000
Change: – 290000.00 -9%

Sold on November 10th.

https://www.zolo.ca/west-vancouver-real-estate/5930-condor-place

https://www.zolo.ca/index.php?sarea=5930%20Condor%20Place,%20West%20Vancouver&ptype_condo=1&ptype_house=1&filter=1

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

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

Feel free to make a donation.

Flop For Fox Fund…

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

#42 Lost....but not leased on 02.17.18 at 4:44 pm

I see our much “debated” poster (*&%) is at it again with post #17.

A local broadcaster discussed the topic of “best of all time” with respect to athletes He commented that is impossible…..one could only be rated in the context of the era..all things being equal.

Extrapolating that, each generation is somewhat beholden to what torch the previous generation has passed on. Leading edge Boomers..ie born say 1945 were barely adults when the national disaster called Pierre Trudeau became PM.

By the time closet communist Turdeau left office in early 1980’s , he set in motion a number of policies we are ALL still reeling from such as massive deficit spending. Inflation was rampant under his Gov’ts.

His “Constitution” was another sham..effectively non elected bodies ie Courts will have the ultimate say in what laws etc. are valid.

No one of any generation had a vote on this pre se, as Turdeau made it clear that MP’s were useless and only there as puppets and clapping seals to rubber stamp whatever Turdeau and his inner circle desired.

Pierre set the tone and template for successive PM’s to effectively run the country as a dictatorship.

Now we have Justin Turdeau…who seems hell bent of finishing Daddy Turdeaus legacy, which appears to be turning Canada into some sort of quasi- communist country.

In essence,”DEMOCRACY” only exists(for now) in that 30 seconds or less that you mark your ballot.

#43 Danny on 02.17.18 at 4:59 pm

Ryan

Your presentation took me back to those learning days in University when occasionally I would score it lucky and find a very well knowledge based professor.

This is refreshing compared to the cheap simple shots coming out of “Don Donald ” and yesterday’s constant waving to the press with a thumbs up wave to the press when asked about the FBI Indictments of Russian spies in the USA. Really he was giving the press, in his simple vindictive mind, the ” middle finger ” because his secret Russian friend Putin has something over Trump.

#44 dakkie on 02.17.18 at 5:05 pm

Oh Canada! Now where have we heard about people borrowing heavily against their rising home values before?

http://investmentwatchblog.com/oh-canada-now-where-have-we-heard-about-people-borrowing-heavily-against-their-rising-home-values-before/

#45 tccontrarian on 02.17.18 at 5:09 pm

So, if I can stomach the volatility, buy the TSX index (for instance), and come out ahead of any ‘mix’, by at least 0.5%!
Personally, I enjoy a hands-on involvement with investments as I seek higher returns (>15%). Besides, each ‘mistake’ I make provides me with a learning opportunity as I’m fully accountable to myself (and wife, who supports me in my endevours).

To each his own, of course!

TCC

#46 Ryan Lewenza on 02.17.18 at 5:22 pm

Mark “Its worth noting that bonds have been in a huge bull market since 1980. Intuitively, what happens to the numbers if we model a long-term bond bear market into the equation? Do any advisors in the financial planning community even conceptually understand what a long-term bond bear market looks like these days?”

While I see rates slowly moving up over the next year or two as the economy and inflation pick up, I see rates remaining low for sometime as declining population growth, lower productivity and massive government debt should help to put a cap on rates. Therefore I don’t see a big bear market in bonds coming. I see low returns (say 3%) from bonds, but not large negative bond returns given this outlook. But if you’re right then be sure you have a good amount of preferred shares since they benefit from rising interest rates given the high percentage of fixed resets in the Canadian preferred share market. – Ryan L

#47 Ryan Lewenza on 02.17.18 at 5:38 pm

Yanniel “Could you share with us your thinking about Momentum Investing. I have been reading about this lately and it seems to be is very well acepted by the academic financial community.”

Momentum investing is not as easy as it sounds. It requires a great understanding of technical analysis, isolating assets with strong relative strength, constant monitoring and changing of the portfolio, a disciplined approach to stick with the strategy and not second guess it, and results in high turnover/costs. It generally requires computer programming, complex excel formulas, and having access to lots of data (i.e. Bloomberg) which costs a lot of money. This is why momentum investing is more prevalent with institutional investors rather than the average retail investor. But as a strategy and if executed well, yes momentum investing has shown it can yield solid results and occasionally, outperform a buy and hold approach. While we incorporate technical analysis and relative strength in our process, we are not momentum investors and this is not what our clients are looking for. – Ryan L

#48 TurnerNation on 02.17.18 at 5:39 pm

Get. Out.

Pepsico is smart closing this AB plant. They well know the dangers of operation under an anti-business Kommunist government. Was it the threat of carbon taxes, soaring electrical prices, or does their analysis show a tide of orange coming more:

http://www.cbc.ca/news/canada/calgary/spitz-factory-alberta-1.4540237

“PepsiCo shuts down Alberta Spitz sunflower seed factory. The company is a made-in-Alberta success story”

– Of not wishing to be on the hook for hurt feelings and dour faces and righteous entitlement? It’s coming.
We are to revert to the mean: the lowest IQ, worst behaved and ugliest lazy attitudes are to be celebrated.

http://www.cbc.ca/news/politics/jagmeet-singh-convention-ndp-speech-1.4540597
“Housing, taxes, healthcare, wages and first-past-the-post voting are all flawed systems breeding inequality among Canadians, he said.”

#49 ImGonnaBeSick on 02.17.18 at 5:39 pm

Well unfortunately we has hu”people” beings were not blessed with foresight, only hindsight. It seems like our resident troll suffers from presentism, which I see a lot of in society right now. We can only learn from our mistakes and try to correct them after the fact. Good judgement comes from experience, and experience comes from bad judgement. Baby boomers have given us a lot, and gen xers have expanded on technologies, millenials havent given us anything yet. Wait until you see how you screw the world up. Hopefully it’s not socialism that you give us.

#50 technical analysis? on 02.17.18 at 5:41 pm

Ryan, how would your 60/40 split do in an inflationary environment? when bond prices get massacred for years and stocks go nowhere?.. you know.. like the 70’s

#51 John Dough on 02.17.18 at 5:41 pm

Hi Ryan,

Reassuring numbers for sure.

When the TSX CAGR is calculated, how are the corpses (Bre-Ex, Nortel, Sino-Forest ….) accounted for ? Are they just replaced with fresh bodies and the new capitalization replaces what disappeared ? That would skew the real CAGR a bit, sometimes a lot.

#52 Buddy on 02.17.18 at 5:43 pm

#39
This is pure gold and invaluable advice. Thanks Ryan, Garth.

#53 Shawn on 02.17.18 at 5:46 pm

The persistent media narrative over the past several years has been lower equity returns going forward. A contrarian view would be to assume higher than average equity returns for the next 1 to 2 decades. This would be consistent with the post 1930s, 1970s and 2000s secular bear markets. On average the S&P500 has returned 15-20% annualized for 2 decades AFTER every decade of zero returns. Why assume it will be different this time?

#54 Ryan Lewenza on 02.17.18 at 5:50 pm

Mark “Nice article, what did a all equity Global Diversified portfolio return, yes I know not a good a idea, but alot of us are wondering!”

I didn’t run that analysis but I would venture it holds up even better in a bear market since the TSX is higher beta (moves more than overall equities) given it’s concentration in resources. Also when you include US stocks for example, you bring in the US dollar which often rallies during downturns so this benefits a Canadian investor. We’re big believers in a globally diversified portfolio and we see benefits of this all time in client portfolios. – Ryan L

#55 Shawn on 02.17.18 at 5:51 pm

Compound annual returns by decade for the S&P 500:

1930s: -0.1%
1940s: 9.2%
1950s: 19.4%
1960s: 7.8%
1970s: 5.9%
1980s: 17.6%
1990s: 18.2%
2000s: -0.9%
2010s: ~15%
2020s: ?

#56 Stone on 02.17.18 at 5:58 pm

#40 mark on 02.17.18 at 4:38 pm
Some dont have the funds/money or started late and have no use for a balanced portfolio.
Some are in our 20’s.

There risk is no money in later years.

We need a detailed example of a Global All Equity Portfolio!! For maximum returns, screw volatility with the reality it may take 5 years for our all equity portfolio to come back to even. Give a Maximum Return Portfolio example i ask.

Bring it on!

——-

Those are big words there, cowboy. I don’t believe you’d have the nerves of steel necessary to hold yourself back from selling when the markets inevitably tank into recession and you lose your $400 saved. This blog has already discussed what you’ve asked here. It appears your subconscience erased it from your mind as it anticipated you didn’t have the capacity to handle it. I would pay attention to your subconscience if I were you. It’s trying to protect you from your own s_____y.

Another $30,000 millionaire in the making.

#57 Ryan Lewenza on 02.17.18 at 5:58 pm

Ca$h Money “Ryan I was looking at preferred shares during the 2008 crash and it appears to me that they are just as volatile as stocks dropping in similar amounts. Do you have any analysis that supports that preferred shares are less volatile and ‘safer?”

Yes during that market crash they were down big and did track closer to equities than bonds. This is partly due to the fact that credit spreads blew out to historic highs which weighed on corporate bonds, high yield and preferreds. Also 2008 was a financial crisis where confidence in the financial system plummeted so this weighed disproportionately on bank preferred shares. But 2008 is an outlier. Going forward I would expect preferreds to decline more than bonds, but far less than stocks in future bear markets. – Ryan L

#58 Ryan Lewenza on 02.17.18 at 6:05 pm

technical analysis “Ryan, how would your 60/40 split do in an inflationary environment? when bond prices get massacred for years and stocks go nowhere?.. you know.. like the 70’s”

Yes a high inflationary environment like the 70s is bad for bonds, stocks and balanced portfolios. Let’s hope we don’t see that! As I covered in an earlier comment, I see interest rates remaining low for a while given low population growth and productivity and massive government debt. So I’m not too worried right now about a high inflationary environment. – Ryan L

#59 millmech on 02.17.18 at 6:20 pm

#17
King Nothing!

#60 Bytor the Snow Dog on 02.17.18 at 6:21 pm

Sucky Canadian Millennial sez:

“They are absolutely the worst generation to have ever lived and Gen X isn’t much better. They know how bad things are for millennials and gen z and they just don’t care. “

Sorry did you say something? Too busy not caring.

Seriously though, what’s it like going through life being a perpetual victim?

#61 Bytor the Snow Dog on 02.17.18 at 6:22 pm

PS- I regret my YES vote.

#62 MF on 02.17.18 at 6:26 pm

#49 ImGonnaBeSick on 02.17.18 at 5:39 pm

” Baby boomers have given us a lot, and gen xers have expanded on technologies, millenials havent given us anything yet. Wait until you see how you screw the world up. Hopefully it’s not socialism that you give us.”

^^Might possibly be the dumbest comment ever.

Ever heard of social media? Do you think it has impacted the everyday lives of people at all?

..And not every millennial is a socialist. They are just the most vocal and not unlike the “flower power” of the 60’s, or “grunge rebellion” of the 90’s.

MF

#63 For those about to flop... on 02.17.18 at 6:49 pm

CONFIRMED PINK SNOW.

One of the requests I often get is can I show something more affordable to the average person.

I think this case fits the bill

The details

Paid 875k June 2016

Sold 840k January 2018 ( the deal was done in early November 2017)

And so after known expenses and a little for opportunities lost this would appear to be a 100k hiccup…

M43BC

10648 Santa Monica Dr,Delta. Ass 823 2017

Paid 875 June 2016

Asking 799

Sold on November 5th 2017 for 840k

https://www.bcassessment.ca/Property/Info/QTAwMDA1VzEzWQ==

https://www.zolo.ca/delta-real-estate/10648-santa-monica-drive

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

Feel free to make a donation.

Flop For Fox Fund…

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

#64 Stan Brooks on 02.17.18 at 6:51 pm

#53 Shawn on 02.17.18 at 5:46 pm
The persistent media narrative over the past several years has been lower equity returns going forward. A contrarian view would be to assume higher than average equity returns for the next 1 to 2 decades. This would be consistent with the post 1930s, 1970s and 2000s secular bear markets. On average the S&P500 has returned 15-20% annualized for 2 decades AFTER every decade of zero returns. Why assume it will be different this time?

——————————-

Very precise observation.

Of course they need you off the gravy train.

As I said, 90 % stocks, 10 % gold stocks.
Game On.
Stay away from TSX and bonds. They are for suckers.

#65 Spock on 02.17.18 at 6:59 pm

SCM will not be able to sleep tonight based on what you said.

Not sure why GT allows this boomer blaming to go on but the clown sure is getting frustrated looking for stories on how the minimum wage does not affect jobs.

The traffic at the food bank and the donations that come in will tell the story in a years time and SCM being at the food bank each day will be in a good position to observe (we hope though that SCM finds some new country in a years time. Seems to be incompetent even at moving nations).

————————————————

#20 mark on 02.17.18 at 3:25 pm
Screwed Canadian Millenial on 02.17.18 at 2:47 pm

Hey Screwed just wanted to say thanks for funding my retirement :)

#66 Yanniel on 02.17.18 at 7:29 pm

“Could you share with us your thinking about Momentum Investing. I have been reading about this lately and it seems to be is very well acepted by the academic financial community.” Yanniel

“Momentum investing is not as easy as it sounds.” Ryan

Thanks Ryan for your answer. However, I have been reading “Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk” by Gary Antonaccy and his Dual Momentum Strategy does not have any of the negatives you just mentioned.

It is extremely easy to implement even by the dumber DYI investor. As for the returns of the strategy and its potency to avoid large drawdowns, I am super impressed. This book is backed by a ton of research done by VIPs in the academic financial world. Gary even won prestigious awards for his papers on the topic.

Are you familiar with Gary’s Dual Momentum strategy? If you are, I would love to hear your opinion.

Thanks.

He gave it to you. – Garth

#67 northvaneng on 02.17.18 at 7:32 pm

Great post.

Re-balancing is always a challenge for me. I tended to overthink things and flirt with single stock ‘darlings’.

Thanks again for the great and timely advice. ’tis the season.

#68 Anna Karenina on 02.17.18 at 7:34 pm

What bond ETFs would you recommend? Both CAD and USD.

Thanks

#69 ImGonnaBeSick on 02.17.18 at 7:36 pm

#49 MF – sure. Try a bit harder. Maybe go upstairs and ask your mom if we’ll count your crayon drawings as a worthwhile contribution to the world…

#70 Shawn on 02.17.18 at 7:38 pm

Stan Brooks.

I agree with your 90% stock (ie S&P500) allocation but disagree that gold miners are a hedge. They’re not necessarily inversely correlated with the stock market. Sometimes they go up when stocks are going up, sometimes they go down when stocks go down. Better off with a broad bond index than gold stocks. Say 90% stocks, 10% cash or 10% bonds.

The TSX will lag the S&P500 because it lacks a significant weighing in technology – the largest sector in the S&P500 and the leading sector globally.

#71 Westcdn on 02.17.18 at 8:00 pm

I find Mr Market gives me an escalator ride up and an elevator ride down. After a few days of heady returns, I just met the floor again. Just saying because I like the owners of this website and want it to keep going. If people can gain from my experience, I will keep contributing my 2 cents worth.

#72 Yanniel on 02.17.18 at 8:06 pm

Re: “He gave it to you. – Garth”

Mr Garth, Your answer is rather disappointing and disrespectful. You should not assume such things. I was sharing what I think is a valid point. I got this book myself and I was not influenced by anybody to get it.

You are being disrespectful towards the work of others (Gary) even without looking at it. Not to mention you are being disrespectful towards me. And yes, I use my real name.

Yanniel.

PS: you should read the book. Seriously.

#73 Grey Dog on 02.17.18 at 8:07 pm

Screwed Canadian Millennial: talk to me about living through the depression…I volunteered to do laundry for a neighbour born during the depression, yup, I discovered their socks were hand darned…at least 1M$+ net worth with darned socks…now I know what to get them for Christmas next year! WHY?!!?

#74 Yanniel on 02.17.18 at 8:10 pm

Actually, my apologies Mr Garth. When you said “He gave it to you” I thought you were implying Gary gave me the book. I missed your point. I apologize. It was me who was quick to judge. Deeply sorry.

Yanniel.

#75 KLNR on 02.17.18 at 8:10 pm

@#49 ImGonnaBeSick on 02.17.18 at 5:39 pm
…Baby boomers have given us a lot, and gen xers have expanded on technologies, millenials havent given us anything yet.
____________________
lol, take your blinders off fella.

https://www.theatlantic.com/national/archive/2014/03/here-is-when-each-generation-begins-and-ends-according-to-facts/359589/

#76 BillyBob on 02.17.18 at 8:12 pm

#17 Screwed Canadian Millenial on 02.17.18 at 2:47 pm

They are absolutely the worst generation to have ever lived and Gen X isn’t much better. They know how bad things are for millennials and gen z and they just don’t care.

===================================

Part of the reason no one cares about you or your feelings, SCM, is because you are quite possibly one of the least likeable, least sympathetic internet trolls who posts here. For an anonymous persona, that’s quite a feat – kudos.

I understand completely why you choose to blame everyone who came before you for your woes – you’re too young to have anyone come after you. Perhaps it would help you to have children so you could blame not only your ancestors but your successors? I’ve yet to see an ounce of personal responsibility claimed in a word of your drivel.

Or, perhaps you could quit obsessing about demographics and trying to assign all blame for your extremely-apparent unhappiness on all those around you. Move on with your life and make something out of it in spite of the challenges that ALL people face.

Like the rest of us did.

Either way, please, just stop with the constant victimhood, self-pitying, whining nonsense. Your constant attempts to pit mythical generations against others is a waste of time and energy. You come across as a caricature, just another internet meme.

#77 Mark on 02.17.18 at 8:13 pm

“The TSX will lag the S&P500 because it lacks a significant weighing in technology – the largest sector in the S&P500 and the leading sector globally.”

Aren’t you forgetting what occasionally happens to “technology”? Besides, what has the US tech sector produced lately? Not a lot, most of the action and innovation for the past 20 years has been in Asia, not the USA. If anything, the US tech sector has become dangerously reliant upon, and correlated to consumer spending through its dependence on advertising as a revenue source and will suffer alongside the consumer.

The TSX looks far nicer than the S&P500 in comparison, and the valuation is ridiculously cheap given what typically happens to the US markets in long-term rising interest rate environments compared to the TSE/TSX. Throw in the far higher quality and more stable leadership and political climate in Canada, and you have a real recipe for Canadian outperformance.

#78 AB Boxster on 02.17.18 at 8:14 pm

#62 MF on 02.17.18 at 6:26 pm

Ever heard of social media? Do you think it has impacted the everyday lives of people at all?

—————————————–
Social media?
Just because an entire generation is now defined by how many times they can SnapChat in a day, or how much skin thay can show on Tinder, dont ever think that this somehow counts as anything that is actually important in the world today.

Most of the impact of social media is arguably negative.
Social media is mostly just another way for advertisers to sell you more crap that you don’t need, or feed you manufactured information that reinforce the version of the world they want you to see.

Try doing something that actually improves the state of the world, or the conditions of life. Try improving your local community.

Having the ability to post inane pictures and comments of your ‘first world problems’ with your legions of ‘friends’ only goes to show how incredibly shallow you actually are.

If the best that Millennials can claim is social media, your argument is lost already.

#79 acdel on 02.17.18 at 8:24 pm

Good post Ryan; whether right or wrong in the long run; who fricken knows nowadays! This is what I have done it so far (knock on wood) I am happy with it.

Poor Felix, not getting the respect he/she demands that they deserve; good puppy!

#80 crowdedelevatorfartz on 02.17.18 at 8:24 pm

@#62 MF
“They are just the “most vocal” ….”
++++++

Is that the new euphemism for “whining”?

Gotcha.

#81 MF on 02.17.18 at 8:43 pm

#78 AB Boxster on 02.17.18 at 8:14 pm

My post didn’t address whether social media is positive or negative, but simply that we have contributed something massive to peoplekind. It was a direct rebuttal to the ridiculous statement ImGonnaBeSick made at #49 who said that we have not done “anything” yet.

Social media has changed permanently the way all humans interact with one another, how we interact with companies/businesses, and how we interact with Governments.

To me that is a pretty big deal.

Oh and by the way, blogs are a form of social media as well.

MF

#82 MF on 02.17.18 at 8:52 pm

#80 crowdedelevatorfartz on 02.17.18 at 8:24 pm

“In the late Twenties, when I was a sophomore at USC, I was a socialist myself — but not when I left. The average college kid idealistically wishes everybody could have ice cream and cake for every meal. But as he gets older and gives more thought to his and his fellow man’s responsibilities, he finds that it can’t work out that way — that some people just won’t carry their load …”

-John Wayne, 1971.

Were there any millennials alive in 1971 fartz?

MF

#83 ImGonnaBeSick on 02.17.18 at 9:01 pm

#75 KLNR – not sure what you’re trying to show me in this link? The graph of generations? Thanks… I’m pretty sure no one will die if someone shuts off your social media (thanks millenials for assuming Facebook invented social media that was good for a laugh.) However, you will die if your artificial heart stops, or the defribulator doesn’t work. Pretty sure there would be no social media had the www not been invented, or ethernet, or the PC, or the cell phone, or the tablet… But yay social media! I think you should put your glasses on.. or maybe you could use boomer created laser eye surgery?

#84 Russ on 02.17.18 at 9:05 pm

Screwed Canadian Millenial on 02.17.18 at 2:47 pm

Boomers are not the generation that lived through the Great Depression. Boomers were born between 1946-1964. They inherited the Golden Age of the middle class (thank you FDR) and absolutely p*ssed it away for future generations with not a concern in the world when it comes to the state of the economy, debt, wages, labour market, environment, air & water quality, pollution levels, national sovereignty, crap tier trade deals, wars, social cohesion, planet, I could go on. They wanted their tax cuts and big spending and plundered away vital public assets and resources. They are absolutely the worst generation to have ever lived and Gen X isn’t much better. They know how bad things are for millennials and gen z and they just don’t care.

2/2
======================

Hey Girl,

I can assure you that your view of all Boomers living in the Golden generation is a fallacy.

I have endured a number of recession and multiple “mill closures” and the wife & I keep a significant hoard of food… just in case.

We are later boomers, early 60s, and lived in the shadow of the ones you worship.

When you realize how much alike you are the Nemesis, I believe some will hear you scream.

Neil Young, Old Man – 1972, listen & weep
https://www.youtube.com/watch?v=SYUgGs9IStY

#85 MF on 02.17.18 at 9:09 pm

#69 ImGonnaBeSick on 02.17.18 at 7:36 pm
#49 MF – sure. Try a bit harder. Maybe go upstairs and ask your mom if we’ll count your crayon drawings as a worthwhile contribution to the world…

-Facebook is valued in the billions. It’s creator is one of the wealthiest humans on the planet. There are currently 2.2 billion users with profiles.

Go ask millennial Mark Zuckerberg (don’t care if you like him or not) if HIS crayon drawings have contributed anything to the world.

MF

#86 IHCTD9 on 02.17.18 at 9:15 pm

Plenty of Millennials are doing great, I know many – mostly tradespeoplekind.

As they should be:

Never in the history of the planet have consumer goods been so cheap.

No generation has benefited so much from globalism and automation as the Millennials.

No generation has started work with such high wages compared to the cost of living. A young couple these days can work at a minimum wage that will cover both a mortgage payment AND investing.

Never has a generation had such a wide diversity of financing and credit options literally thrown at them as the Millennials.

Never has a generation had such low interest rates backing their consumption as the Millennials.

Never has a generation benefited from technology so greatly as the Millennials. The web has made literally everything easy as pie. Ask us what a job hunt used to look like.

Just because you took out a massive loan for a liberal arts degree and then decided to move to the GTA doesn’t mean every millennial is as stupid as your dumb ass.

If I were a millennial, I’d literally be dancing for joy at my good fortune. I’d also be pointing and laughing alongside my millennial co-workers at the urban hipsters who are 100k in school debt, and slogging through a 7 figure mortgage. The millennial tradespeoplekind I know freely admit they have it made in the shade.

I wish I was born 10 years later so I could have had such an easy time as the Millennials are right now.

It’s as easy as making good decisions champ.

#87 ImGonnaBeSick on 02.17.18 at 9:24 pm

#85 MF – If you think Mark Zuckerberg invented social media then I’m sure you mom still reads you picture books before tucking you in at night. Make sure you hold off on that extra glass of water, don’t want you wetting your jammies.

#88 Karma on 02.17.18 at 9:26 pm

The Value of Nothing…

“A cynic is a man who knows the price of everything and the value of nothing”
— Oscar Wilde

https://medium.com/@arnoldkling/the-value-of-nothing-914400e9ce4c

#89 akashic record on 02.17.18 at 9:40 pm

#85 MF on 02.17.18 at 9:09 pm

-Facebook is valued in the billions. It’s creator is one of the wealthiest humans on the planet. There are currently 2.2 billion users with profiles.

Go ask millennial Mark Zuckerberg (don’t care if you like him or not) if HIS crayon drawings have contributed anything to the world.

—-

It certainly did.

His company built the technical platform for 2.2 billion morons to create and continously update with more data their own personal profile without fully understanding the consequences, to be datamined for profit and on the side it also serves as the foundation of the most perfect totalitarianism in history.

And this is before AI, which will be able to utilize this data most effectively.

In the future the world’s safest, most valuable regions will be the areas that facebook and other social media outlets could not penetrate.

#90 Cloudy on 02.17.18 at 9:45 pm

Ryan,

Great post today. Do you have any hard numbers or just feelings on how other 60/40 mixes do compared to yours? The two trains of thought I have are people with less money invested in a smaller basket of ETFs vs someone with more money and spread over more ETFs and also someone that might different ETFs) vanguard vs ishares vs RBC etc?

Thanks

#91 Long-Time Lurker on 02.17.18 at 9:55 pm

#30 Nikita on 02.17.18 at 3:47 pm

He inspired me to learn more about the stock market and I quickly realized I knew nothing.

>Start here:

http://www.greaterfool.ca/2013/09/27/investing-101/

Investing 101 by Garth Turner
September 27th, 2013

Most people suck at investing. The banks know this. Mutual fund salesguys depend on it. Insurance hawkers, too. Plus the cowboys who flog gold and silver. The vast majority of us make two one of two mistakes. We get greedy and end up taking huge risks. Or we get scared and bury money in dead-end GICs. Either way, we lose….

#92 For those about to flop... on 02.17.18 at 10:01 pm

CONFIRMED PINK SNOW.

This is another relatively affordable one that took a big hit.

I already knew the result and now it has been confirmed.

The details…

Paid 830k February 2016

Sold 715k December 2017

So obviously in dollar amounts not breaking any of my records but after we factor in expenses and a couple of percent for opportunities lost we are up to over 20% loss and approximately 175k lighter after this detour…

M43BC

Sold on December 12th 2017

3550 Pearkes Pl,Coquitlam.

Paid 830k in February 2016

Currently asking 780k ass 853 2017

https://www.zolo.ca/port-coquitlam-real-estate/3550-pearkes-place

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

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

Feel free to make a donation.

Flop For Fox Fund…

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

#93 Keith in Rio on 02.17.18 at 10:02 pm

Stay long in government bonds and you can sleep at night. Countries are an easier bet to control than companies.

#94 MF on 02.17.18 at 10:04 pm

#87 ImGonnaBeSick on 02.17.18 at 9:24 pm

-Just what I thought. No response.

By the way, if you think boomers invented the internet than maybe you should do some reading.

MF

#95 For those about to flop... on 02.17.18 at 10:19 pm

CONFIRMED PINK SNOW

This one is the next step up the ladder.Lets see what happened to these guys.

The details…

Paid 1.32 November 2016

Sold 1.23 January 2018

After we factor in expenses and a little for cost of opportunity they probably are 180k worse off after this experience…

M43BC

Sold on December 12 2017

899 50b Street, Delta paid 1.32 November 2016 ass1.21 asking 1.29

Aug 30:$1,550,000
Oct 25: $1,490,000
Change: – 60000.00 -4%

https://www.zolo.ca/delta-real-estate/899-50b-street

https://www.bcassessment.ca/Property/Info/QTAwMDA1VlBMUQ==

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

Feel free to make a donation.

Flop For Fox Fund…

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

#96 Leo Trollstoy on 02.17.18 at 10:28 pm

Boomers and GenX don’t care about Millenials or GenZ

Millenials and GenZ don’t care about Boomers and GenX

What’s the problem?

I already got mine

Lol

#97 BillyBob on 02.17.18 at 10:39 pm

#85 MF on 02.17.18 at 9:09 pm
#69 ImGonnaBeSick on 02.17.18 at 7:36 pm
#49 MF – sure. Try a bit harder. Maybe go upstairs and ask your mom if we’ll count your crayon drawings as a worthwhile contribution to the world…

-Facebook is valued in the billions. It’s creator is one of the wealthiest humans on the planet. There are currently 2.2 billion users with profiles.

Go ask millennial Mark Zuckerberg (don’t care if you like him or not) if HIS crayon drawings have contributed anything to the world.

MF

====================================

Uh…you mean the Mark Zuckerberg who (like many Silicon Valley tech founders) won’t allow his own children to use social media and smartphones? The one who bought four houses around his own to obsessively protect his privacy, while Facebook collects every bit of data it can on everyone using it?

THAT Mark Zuckerberg?

Pardon me if I don’t feel like applauding his “contribution to the world”, seeing as even he doesn’t seem to value it in practice.

If anything it’s only becoming more apparent by the day just how brutally negative the impact of most connected tech is on society at large. Full-blown addiction by design of the creators. Mental illness up the wazoo, shortened attention spans, lowered cognitive abilities.

https://www.theglobeandmail.com/opinion/can-we-ever-kick-our-smartphone-addiction-jim-balsillie-and-norman-doidgediscuss/article37976255/

Yeah, thanks for that Millennials. Keep up the good work saving the world, one Instagram pic of avocado toast at a time.

#98 stage1dave on 02.17.18 at 11:18 pm

Wife recently re-balanced her profit sharing, but they won’t allow a 60/40 split. She’s into lo risk, moderate risk, and company stock; 35/35/30 and aggregate 11.6% last YTD. Kind of a restricted format, but so far so good…

#17 SCM;

As a card-carrying member of the “baby boomer” generation, I resemble that remark…haha.

Most of my thoughtful generational brethren, male or female; having become informed about the issues effecting us and voted accordingly, would probably conclude (as I did, long ago) that it didn’t make any difference.

The system just keeps churning along regardless. To repeat, it wasn’t anything personal against future generations. Sorry about that, next time we’ll just shoot anyone who looks like they’re making a profit on…well, something that a future generation might want to buy CHEAP…

(you’re upset about housing price increases? Seen the price appreciation on HemiCuda rags since 2000? That’s what pisses me off…someone tell me who to blame. And the recent HUGE demand for 68 opc CFL cards…WTF is goin on there, huh? If this keeps up, my grandkids are gonna have to take out a HELOC to fund a decent Lancaster in this set)

I’ll try to end on a positive by listing a few boomers who have contributed positively to this world…hopefully none of them made money on RE, therefore making it unaffordable for someone else’s kids…

Bobby Orr

Ozzy

Maclean & Maclean

Angus Young

Pamella Wallin

John Force

The dude who invented Booster Juice

Actually, screw the “positive”…here’s a list of boomers who deserve to rot in hell for all eternity…

1) The person who invented “leaf blowers”, surely the most annoying, soul destroying, life disrupting, mechanical invention of all time.

2) The individual responsible for coining the term “customer service representative”

3) Automotive engineers who decided rear view mirrors, gloves, and long underwear could be supplanted by dash mounted cameras, heated steering wheels and seats.

4) The inventor of “automated” phone calls

I could add to this list extensively if the wife hadn’t just returned with TH’s…so someone else can.

#99 n1tro on 02.17.18 at 11:19 pm

#62 MF on 02.17.18 at 6:26 pm

Ever heard of social media? Do you think it has impacted the everyday lives of people at all?
—————–
Are referring to Facebook? Mark Z isnt the inventor of social media. Thats like saying 1 person invented the Internet. Facebook is the popular spawn of classmates.com and myspace.com, both from Gen Xers.

You can’t even say Bitcoin is a millennial thing unless you prove Satoshi was a late teenager when he/she did what they did.

#100 M on 02.17.18 at 11:25 pm

..and of course if the great bubble in bonds decides to implode (fast) or reverse (in a managed way with a bit of QE) bringing up the interest rates that will crush the stocks ( repurchasing one’s own shares with cheap $ is an olympic sport)… the 60-40,50-50,40-50 or any other parity bet will go down in flames for many years.

..but of course… this can never happen. Isn’t it ?

historical data is very good …but irrelevant when the long term trend changes i.e. from a lower and lower interest rate to a higher and higher interest rate.

The place where we are all going.

Maybe ..in a future write up, please do suggest an approach that is successful in a HIGHER interest environment. For if the equities are supposed to go up, then their base price has to be …much much lower.

#101 NVLandlord NO MORE on 02.18.18 at 12:06 am

Social media:
Interesting comment by Lawrence Solomon in the Globe and Mail today wherein he equated social media to :
AN ECHO CHAMBER!
I laughed out loud, as that is the way I see it too.

#102 MF on 02.18.18 at 12:26 am

#89 akashic record on 02.17.18 at 9:40 p

Whether the ramifications are positive or negative is not the point. Facebook is both.

The impact, which is huge, was my point.

We agree.

MF

#103 Nut - Message for SC Millennial on 02.18.18 at 12:51 am

I recently viewed a documentry on Cuba and thought of your plight. the dicumentry was part of a series, Water Front Cities. I think Cuba is for you.
Highlights: Everyone makes 15 dollars a month, even doctors, they said. Not much fresh produce for sale in Havana. Once small source of produce is bought off boats from American capitalists, although the Americans apparently deny it. Literacy is very high. Great music & dancing. In pre-revolution housing what two people occupied, is now occupied by 6 people. Weather is what you are looking for. Buildings are falling apart. Teh government admits it, but ways there is no money to fix them. Give it a look. The best part for you is the 15 dollar a month income for all. Its the socialist utopia you are looking for.

#104 Dow Jones on 02.18.18 at 1:13 am

The TSX is a joke. Look at it over the last 10 years. It doesn’t move.

#105 Lost...but not leased on 02.18.18 at 1:54 am

Todays Blog photo:

Dog pooped out a cat…?
Dog gave birth to a cat????

#106 Smoking Man on 02.18.18 at 2:08 am

How many of you real men have scars of carpet burns on your head trying to find your room

I did.

#107 mark on 02.18.18 at 4:05 am

Stone on 02.17.18 at 5:58 pm

Glad you got me figured out lol. Actually my 6 figures is 100 percent stocks for your info. Tad more than 30K
:)

#108 crowdedelevatorfartz on 02.18.18 at 5:46 am

@#82MF
“Were there any millennials alive in 1971 fartz?”
++++++
In university?
Nah, just idealistic Boomers that eventually ….. grew up.

#109 Madcat on 02.18.18 at 8:09 am

Housing rally today in Vancouver:

Sunday, 2:00pm. Jack Pool Plaza

https://www.facebook.com/groups/vanfalling/permalink/560327887686706/

#110 ANON on 02.18.18 at 8:44 am

My 60/40 bear-out-of-hibernation doomer-gloomer portfolio: 60% popping corn (not exactly paleo, but acceptable), 40% tuna cans. Some DIY squirrel traps on the side, just in case.

#111 Old ROn the Realtor on 02.18.18 at 9:05 am

I am always amused by the generational wars on this blog.

Folks, the year of your birth does not preordain either success or failure. It is what you do on the court that determines that outcome.

#112 bubu on 02.18.18 at 9:37 am

guys, I know the topic is not real estate today, but do you know why City of Edmonton gives access to real estate agents to see comparable sale info but not to the public? https://myproperty.edmonton.ca/

#113 MF on 02.18.18 at 9:43 am

#99 n1tro on 02.17.18 at 11:19 pm

Classmates.com and myspace.com were never companies worth billions, nor were their creators. The impact of Facebook is far far larger, it’s millennial creator far far wealthier.

By your logic we cannot give credit for the creation of social media to anyone other than the person who came up with the telegraph centuries ago.

MF

#114 MF on 02.18.18 at 9:51 am

#97 BillyBob on 02.17.18 at 10:39 pm

Nobody cares about your judgement on the value of Facebook and its uses.

Besides, there are two sides to that argument.

My point was the size of its impact. And as I said earlier, the platform has profoundly changed the way humans interact with each other, with companies, and with governments permanently.

MF

#115 Young Boomer on 02.18.18 at 10:18 am

@94 MF

“By the way, if you think boomers invented the Internet than maybe you should do some reading. ”

I’m a “young” boomer.

Being intimately involved with the workings of the Arpanet in Canada, and with the transition from the Arpanet to the Internet, “I was there”. How do you think the “.ca” domain came to be? How do you think the DNS in Canada came to be?

You ever met any of the well known names in the “Internet”? I have. Tim Berners-Lee, Vint Cerf, Paul Mockapetris. You ever actually been to any of the IETF meetings where the Internet protocols were decided?

You participated on the HTML5 technical working group? How about Early VOIP, like skype, etc, or video over the Internet? VR over IP? If yes, then we’ve probably met in person, or directly know people in common.

What did I miss? Please tell me what I should be reading.

#116 aa3 on 02.18.18 at 10:29 am

Right now I like the boring CDN utilities These companies basically the best you can hope for is they grow in value at the same rate the CDN economy grows in nominal terms.

Canada grows in nominal terms at ~4% per year. (2% inflation, 1% pop growth, 1% productivity growth)

But add in the 3% dividends for these utilities and actually the return on investment looks pretty nice.

#117 Ryan Lewenza on 02.18.18 at 10:32 am

Cloudy “Great post today. Do you have any hard numbers or just feelings on how other 60/40 mixes do compared to yours? The two trains of thought I have are people with less money invested in a smaller basket of ETFs vs someone with more money and spread over more ETFs and also someone that might different ETFs) vanguard vs ishares vs RBC etc?”

Whenever we do these studies we always start with just the broad indexes. This helps provide the framework around what asset mix to use. We then build a portfolio of ETFs with 60% in equities and 40% in bonds. At this step is where returns will start to diverge depending on which ETFs and exposures you use. For example do you use low or higher costing ETFs and how much do you have in Canada, US and international. So it’s hard to generalize about returns for a small portfolio of ETFs or a more complex portfolio with lots of ETFs. But our advice is to keep things simple. Have a few ETFs that track government and corporate bonds, preferreds, Canadian, US and international stocks. – Ryan L

#118 ANON on 02.18.18 at 10:36 am

#111 Old ROn the Realtor on 02.18.18 at 9:05 am

I am always amused by the generational wars on this blog.

No argument here. Take the millennial generation and put them in the same period and conditions, and the exact same thing would have happened.

Folks, the year of your birth does not preordain either success or failure. It is what you do on the court that determines that outcome.

However, this is not true, and there are countless examples of periods of expansions and subsequent contractions, including conflicts, thorough history to prove that it does>/b> matter. At any rate, this theory will be re-tested, probably very soon.

#119 Ride the waves of life on 02.18.18 at 10:37 am

#106 Smoking Man on 02.18.18 at 2:08 am

How many of you real men have scars of carpet burns on your head trying to find your room

I did.
..

Real men surf they don’t crash n burn.

#120 Ryan Lewenza on 02.18.18 at 10:38 am

Anna Karenina “What bond ETFs would you recommend? Both CAD and USD.”

For Canadian bonds we like XCB for corporate and VSB for short-term bonds. For US bonds we like LQD for corporate bonds and GOVT for government. – Ryan L

#121 akashic record on 02.18.18 at 10:48 am

#102 MF on 02.18.18 at 12:26 am
#89 akashic record on 02.17.18 at 9:40 p

Whether the ramifications are positive or negative is not the point.

===

It makes the difference of the entire life.

Imagine if resistance could have existed at all against the Gestapo or KGB during Stalin with facebook profiles available on the entire population.

#122 millmech on 02.18.18 at 10:59 am

#86 IHCTD9
Your absolutely right, young people right out of high school starting as first year apprentices are getting $30/hr at our plant. Generally speaking most of them make over six figures if they take the always available overtime.

#123 For those about to flop... on 02.18.18 at 11:14 am

CONFIRMED PINK SNOW.

This is another one that I got to show you guys in pretty much real time thanks to Broadway.

Now we have confirmation.

The details…

Paid 1.24 March 2016

Sold 1.17 January 2018 (This house sold on December 14 2017)

I guess it’s not unreasonable to suggest that after everything is thrown in the old cement mixer that these guys are walking around in 150k worth of concrete shoes…

M43BC

11231 64a Avenue, Delta paid 1.24 asking 1.19 ass 1.15

Oct 15:$1,368,000
May 14: $1,299,000
Change: – 69000.00 – 5%

https://www.zolo.ca/delta-real-estate/11231-64a-avenue

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA1VkJVUg==

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

Feel free to make a donation.

Flop For Fox Fund…

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

#124 heloguy on 02.18.18 at 11:31 am

Screwed Canadian Millenial on 02.17.18 at 2:47 pm

They are absolutely the worst generation to have ever lived and Gen X isn’t much better. They know how bad things are for millennials and gen z and they just don’t care.

SCM,

I do care, just not about you. I care about those in my sphere of influence; family and friends. The socialist ideals you have will change as you age and you will be assimilated by the Borg. Submit and enjoy your newfound happiness

#125 akashic record on 02.18.18 at 11:44 am

#111 Old ROn the Realtor on 02.18.18 at 9:05 am

I am always amused by the generational wars on this blog.

Folks, the year of your birth does not preordain either success or failure. It is what you do on the court that determines that outcome.

Absolutely true.

#126 Technical analysis? on 02.18.18 at 12:14 pm

So, let me get this right. Long term, your 60/40 split under performed stocks. You don’t engage in market timing ( because you can’t, not that it’s difficult). And you stay fully invested all the time. And in an inflationary environment, you admit you will do rather poorly. Wow.

#127 NoName on 02.18.18 at 12:21 pm

#94 MF on 02.17.18 at 10:04 pm
#87 ImGonnaBeSick on 02.17.18 at 9:24 pm
-Just what I thought. No response.
By the way, if you think boomers invented the internet than maybe you should do some reading.
MF


us gov. invented internet when early boomer had fun with raging hormone changes…

#128 Keith on 02.18.18 at 12:46 pm

#111 Old Ron the Realtor An unskilled blue collar unionized worker born in the thirties owned a house, paid off in a few years with deflated dollars, had a company pension, stay at home wife and university educated children who graduated with no student debt. Two income professional couples in Vancouver do not have the same opportunity for success. You are full of it.

#129 Mark on 02.18.18 at 2:10 pm

“The TSX is a joke. Look at it over the last 10 years. It doesn’t move.”

You do know what happens after indices go through lengthy consolidation periods and the underlying companies clean up their balance sheets, right?

The TSX hasn’t gone anywhere in the past decade due to the headwind of falling long-term interest rates and minimal inflation. But there’s reason to believe that such factors won’t last forever. It should be a pretty impressive climb as long-term rates go higher and inflation comes back onto the scene.

Besides, you get a nice 3% dividend to hold the TSX right now, which quite easily covers the cost of financing a position (borrow at 1.44% after-tax, invest at 3% dividend yield after tax — don’t even need any dividend growth for such to be a nicely profitable proposition!).

#130 Stan Brooks on 02.18.18 at 2:27 pm

#120 Ryan Lewenza on 02.18.18 at 10:38 am
Anna Karenina “What bond ETFs would you recommend? Both CAD and USD.”

For Canadian bonds we like XCB for corporate and VSB for short-term bonds. For US bonds we like LQD for corporate bonds and GOVT for government. – Ryan L

———————————-

XCB are corporate bonds, i.e. they have risk with annual return 3 % while real inflation is over 5-6 %, maybe more.

I understand that any other CAD investment alternative/TSX is crappy but what justifies guaranteed loss on investment while assuming risk, i.e. return free risk in this case?

In addition rates are ‘officially’ expected to go up.

Do we believe that somehow rampaging inflation will slow down?

Or we should expect gradual move toward nominal ZIRP that will drive prices of existing bonds higher due to ‘capital gains’?

Knowing BOCs boss I would not be surprised at all if we move to negative nominal interest rates while inflation is at 8-10 % annually (of course the very move of cutting the rates down instead of raising it up will kill the CAD and the imports will skyrocket, including food, so 10 % inflation is pretty much guaranteed)

Both options pretty much stink.

So the question is do these option justify investment in diminishing currency nominated bonds that yield negative real interest rates?

I would not consider CAD nominated bonds under 8 % considering the real inflation.

Even then I will think twice.

#131 NoName on 02.18.18 at 2:34 pm

#116 aa3 on 02.18.18 at 10:29 am
Right now I like the boring CDN utilities These companies basically the best you can hope for is they grow in value at the same rate the CDN economy grows in nominal terms.

Canada grows in nominal terms at ~4% per year. (2% inflation, 1% pop growth, 1% productivity growth)

But add in the 3% dividends for these utilities and actually the return on investment looks pretty nice.

Everything I hear is that utilities and rate increase don’t mix together.

#132 NoName on 02.18.18 at 2:49 pm

Interesting read
http://www.thejournal.ie/gender-equality-countries-stem-girls-3848156-Feb2018/

#133 Stan Brooks on 02.18.18 at 2:50 pm

Investments it seems will be less relevant in the next decade or two vs. preservation of capital.

By means of protecting it from thieves.

1. Saskatchewan’s first mental hospital closing its doors after 100 years

https://ca.finance.yahoo.com/news/saskatchewan-apos-first-mental-hospital-150003470.html

So now we have no place to keep liberals under supervised care.

2. NDP leader attacks web giants, defends taxes in call-to-arms for equality

https://ca.finance.yahoo.com/news/jagmeet-singh-target-giants-major-184858413.html

it seems the expropriator of your RRSP funds have been finally found.

Equality folks, no matter the effort.

Exciting times ahead/to look at from the sidelines and from as far as possible.

#134 n1tro on 02.18.18 at 3:24 pm

#113 MF on 02.18.18 at 9:43 am
#99 n1tro on 02.17.18 at 11:19 pm

Classmates.com and myspace.com were never companies worth billions, nor were their creators. The impact of Facebook is far far larger, it’s millennial creator far far wealthier.

By your logic we cannot give credit for the creation of social media to anyone other than the person who came up with the telegraph centuries ago.
—————
Your original premise was that a millennial contributed to the world by bringing about social media when it was not the case. You then use the fact that Facebook is worth billions to try to back your point.

Since when does making a ton of money equate to making a contribution to the world?

Social media does have an impact on the world. However, not one person or generation was responsible.

#135 MF on 02.18.18 at 3:38 pm

#134 n1tro on 02.18.18 at 3:24 pm

So we agree millennials have contributed something to the world.

MF

#136 Stan Brooks on 02.18.18 at 4:11 pm

Do we have a lawful society or not?
Where is the RCMP?

http://laws-lois.justice.gc.ca/eng/acts/C-46/FullText.html

Frauds on the government
121 (1) Every one commits an offence who

(c) being an official or employee of the government, directly or indirectly demands, accepts or offers or agrees to accept from a person who has dealings with the government a commission, reward, advantage or benefit of any kind for themselves or another person, unless they have the consent in writing of the head of the branch of government that employs them or of which they are an official;

Punishment
(3) Every one who commits an offence under this section is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years.

———————————-

Government funding – Aga Khan Foundation Canada/Fondation Aga Khan Canada / Khalil Shariff, Chief Executive Officer

List of Government Funding
Government Institution Funding Received in Last Financial Year Funding Expected in Current Financial Year
Global Affairs Canada $48,966,065.00 Yes
International Development Research Centre (IDRC) $396,299.00 Yes

——————————————-

The question here is:

1. Are we living in lawful society and where is the arm of the law in regards to offenders.

2. Are we obligated to follow the law in lawless society where punishment only applies to some/not them, but obligations only to you.

========================

The guy recognized his guilt publicly. When is he going to jail?

#137 Stan Brooks on 02.18.18 at 4:31 pm

We could be very close to a point in time when the public recognizes that obligations/taxes only apply to some/the prudent/the honest, while benefits only to others and the elite is pretty much exuded from any accountability, with deemed ‘loopholes’ closed on the middle class, not on the rich.

And will demand quality of services by government or default on ALL their obligations one way or another.

Now the question is how long can the fabric of society resist and sustain this assault on moral, law and common sense by the ruling elite/them, not us?

Liberal policies of division are not helping.

My guess is 3-5 years.

Then expect Detroit-itizatiion of Canada

Diversify and protect your money and mind the RRSP trap.

#138 Cloudy on 02.19.18 at 1:15 am

Thanks Ryan. Replies are very appreciated!