Too much?

When the Dow hit 10,000 at the turn of the century I was busy building a live, streaming mobile TV station in the back of a truck sitting in a parking lot in downtown Toronto. Sticking out the top was a fat antenna thingy aimed at the top of the CN Tower which sent out signal skyward in a shocking new way – wireless!

In the truck were three surreal employees I expected to (a) broadcast continuous business and financial news for eight hours a day, (b) feed the meter, (c) man the mini-digital cameras and audio feed, (d) manage the wireless broadcasting equipment, (e) keep the power plugs stuck in the adjacent poll outside and (f) find stuff to talk about, including rolling up the back door, corralling passers-by and inviting important Bay Street honchos to come down and crawl through the cab into the studio.

What I was doing, the Globe said at the time, “Is just like CNN. But cheap.”

This, kids, was the dot-com era. Anything went. It was euphoric, unbridled, iconoclastic and bold. The old ways of doing things – making money, creating companies, doing business, getting rich & famous – were kaput. The online world was here, changing everything at once, making tomorrow utterly unpredictable.

Investors bought it hard. Nortel dominated the Canadian stock exchange. Dot-com millionaires on skateboards were everywhere. A few people had heard of something called “Google” and one week after launching my web TV venture execs from the country’s biggest communications company were buying me steak and goblets of red wine at the King Eddy.

Well, as you know, things didn’t go so well after that Y2K excess. Tech stocks plunged, making investors wonder why they ever bought into companies with insane valuations and no profits. The Nasdaq lost 80% of its value. Nortel flamed and died. Then we woke up to Nine Eleven and a recession.

So, in hindsight, the Dow at ten grand was a symbol of nothing that endured. My cutting-edge mobile studio migrated into a bricks-and-mortar operation and started turning out TV shows for the traditional networks. So boring. The last time I saw the sexed-up, wireless cube van it was being sold to a reno contractor. Sigh.

Well here we are again. The Dow at 20,000 – seventeen years, and one giant credit crisis later. This time investors have been pouring in, post-Trump. The market’s gained about 7% since the November 8th election, and the dude today celebrated the milestone with (of course) a Tweet. Once again there’s the sense we’re in a new age, graduating from deflation and decline into inflation and testosterone, with the new US president being the bold iconoclast who millions expect will quickly make them wealthier. One day it’s ripping up trade deals. The next it’s building a $10 billion wall.

Markets assumed when a billionaire businessman becomes president he’ll be pro-business, favouring CEOs, cutting corporate taxes, reducing regulations, tossing out lefty concerns like health care or the environment, stimulating demand through taxes and tariffs and celebrating more profits and non-stop growth. So, they went up. Fast. Hard. And if Trump does in fact slash business taxes by more than half, bottom lines will swell like a pubescent gland, and the stock market will look cheap again.

So is the Dow at 20,000 scary? Especially when other markets – Bay Street, the S&P 500 and Nasdaq – are also at record highs?

Maybe a little – because this marks a 200% gain for stocks since the winter of 2009 – but not a lot – because corporate valuations are only moderately elevated. The milestone is just that. A marker. More psychological than anything else, grabbing headlines and probably reminding a lot of people who kept their money in a brain-dead GIC at the fruit place for the past few years that it was a lame decision.

Anyway, I asked my fancy portfolio manager partner, Ryan Lewenza, for his technical analysis take on the day’s big event. He suddenly looked very aroused, ran to his office and dove into the research files. Ryan analyzed the six- and 12-month returns after the Dow had hit 10,000 in 1999 as well as other key markers. “In every case the Dow was up after hitting these milestones, and on average rose 8.1% and 18.3% in the 6 and 12 months after hitting these important levels,” he said. “So just because the Dow hit this important milestone of 20,000, we should not expect a near-term peak in the bull market, and in fact, if history is prologue we should expect further gains.”

Here’s his summary:

So why has this happened? All Trump?

Far from it, actually. The new president’s rally certainly helped push the index ahead, but that came after many record highs during the final months and years of the Obama reign. The key factors are bigger than either leader. Like global and US growth which is now accelerating and evident in manufacturing data, GDP numbers and lending indices. Meanwhile corporate profits in the US have revived – we’re now in a second positive quarter of earnings growth, even without a tax cut or regulatory overhaul. Despite the growth, inflation is low enough still that central bankers around the globe have kept rates cheap and liquidity flowing. Yeah, the Fed will hike twice this year, but this is still a gradual, gentle slope higher.

“In sum,” Ryan says, “don’t fear the Dow hitting 20,000. Rather rejoice as it’s proof that things are getting better and that this bull market should continue in the months ahead.”

Of course, don’t be a cowboy. Picking a few stocks, having an all-equity portfolio, or putting all your chips on America is gambling, not investing. Always be balanced, diversified, prudent, almost boring. Things can always get worse.

You have no idea what it feels like seeing your awesome mobile studio delivering drywall.

132 comments ↓

#1 Alice on 01.25.17 at 7:12 pm

“Chinese Gangs And Canadian Real Estate, The Odd Correlation”. This going to be huge. Apparently Better Dwelling has been asked to speak at anti-money laundering conference about this.

https://betterdwelling.com/chinese-gangs-and-canadian-real-estate-the-odd-correlation/

#2 droping standards on 01.25.17 at 7:12 pm

It’s incredible what passes for technical analysis these days.

#3 I'm NOT Poloz on 01.25.17 at 7:13 pm

We need the Canadian $ to be competitive in our globalized economy.

First, we need to lower the value of our Loonie to about 40 to 45 cents U.S. to increase our exports, make our world class city Toronto competitive for American tourists, increase investment in our non-profit sector (pro-choice, wage gap, anti-sexism, pro-teacherstudentrelationship pro-women) among other things.

I agree wholeheartedly with Poloz that the Canadian Loonie should be lower than 50 cents U.S. Preferably, we need a 35 or 40 cent Loonie in order to boost our exports and lessen our dependence on fossil fuels from Alberta!

#4 not 1st on 01.25.17 at 7:14 pm

…and for another Obama feat, US debt clock hits 20 trillion tonight.

Anyone and their dog can run up debt. It takes vision to build something.

#5 RentYVR on 01.25.17 at 7:17 pm

Not all equity markets are at all time highs. European markets in particular are still off. So are a number of EM countries. You can always find value somewhere!

#6 Keith on 01.25.17 at 7:18 pm

Seventeen years for a double in the Dow, according to the law of 72, that’s a rocking 4.24%. But hold the phone.

Assuming dividends of 2%, we’re at 6.24%. Including the worst financial crisis in 70 years. Throw a little balance in your portfolio, you make out like well, a bandit although not the Bandit. Because despite little peanuts, and orange toned billionaire trustafarians messing with the world, every morning most people get up, go to work, spend money. Businesses become more efficient with technology and better work processes.

You can’t go wrong betting on North America, to modify Warren Buffet. Even in a low growth period businesses expanded, cut costs and improved profitability. Learn from history, learn from Garth, look forward long term and follow the strategies of the wealthy. Prosper.

#7 ShawnG in TO on 01.25.17 at 7:20 pm

workdaytv.com domain is for sale. maybe i can buy it and use it to sell drywall? kidding!!

#8 For those about to flop... on 01.25.17 at 7:27 pm

Forget about Pink Snow falling in Vancouver for a moment and let’s go all out fantasy.

The highest priced property for sale in the GVA at the moment is a property down in Southlands that is on the market for 38 million.

Originally built in 1929 ,it was last purchased in 2014 for 9.5 million and since then it’s assessment has basically doubled to 18million ,only 20million shy of asking.

Property taxes are a measly 28k a year,don’t worry they should be going down soon.

No doubt looking for a high roller, but the bit that made me smile the most was the mortgage calculator attached to the list stated that if you could only put 5% down your monthly payment would be close to 160k and if you could put 20% down then the hit would be 132k a month.

Paul Allen is the only guy I know that would not flinch at these numbers.

M42BC

https://www.zolo.ca/vancouver-real-estate/2106-sw-marine-drive

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

#9 DRUMP on 01.25.17 at 7:28 pm

ANIMAL ABUSE —— Left that poor dog to push with those …..whatever Trump calls them.

#10 Long-Time Lurker on 01.25.17 at 7:28 pm

Cute business model, Garth.

Trump sure moves fast for an old guy.

That US corporate tax rate is going to leave Canada in the dust.

Thanks for keeping up your blog.

#11 bigtowne on 01.25.17 at 7:34 pm

If we examine the Canadian currency over the past 50 years there are ups and downs not unlike the Interstate 75 through Kentucky and Tennessee.

Canadians have a stoic and indifferent regard to the gyrations of the loonie beyond what any fiduciary would vouch for.

Imagine you are a CEO and your biggest client is sitting in your board room and you have bad mouthed him and tore him apart in all the social media for the past quarter……is there any plausible functioning diplomat in our multi-layered government and/or civil service who can mend this 5,524 long border?

#12 Rick Fast on 01.25.17 at 7:39 pm

GTA Housing to drop 30% by 2018!

#13 Muttley O'Toole on 01.25.17 at 7:40 pm

Well all those that followed The Garth and religiously invested according to his dictate, are now laughing and having little self hugs.
Congrats: you are the man!

#14 Kevin's Fanzone on 01.25.17 at 7:46 pm

One ten billion dollar wall – once – will save 20 billion a year in illegal immigration. Its funny how so many people seem to forget that undocumented workers are breaking the law.

#15 MouldyinYVR on 01.25.17 at 7:50 pm

http://projects.thestar.com/panama-papers/canada-is-the-worlds-newest-tax-haven/

Still paying your taxes – no one else seems to be!

Snow Washing -Canada is the world’s newest tax haven:
“Canada is a horrible tax haven. Everybody is now switched over from using BVI companies and Cayman companies to Canadian LPs. It’s like the ultimate tax haven entity in the world…” “Canada is a new player in the world of offshore companies” …………..“Canada is the most preferable destination for compliant tax planning since it has no negative offshore reputation and no association with tax avoidance or evasion. It is by far one of the best neutral jurisdictions, providing offshore benefits without any of the traditional offshore drawbacks.”………

Federal Finance Minister Bill Morneau says his government sees this as an important issue and that he is working with his provincial colleagues to bring greater transparency to the corporate registration system.

#16 Brian Ripley on 01.25.17 at 8:00 pm

I have my Canadian DEMOGRAPHIA 2016 charts up now… they include 40 Canadian cities.

Price to Income Ratios

Vancouver 11.8
Victoria 8.1
Toronto 7.7
Montreal 4.8
Calgary 4.6
Edmonton 4.1
Ottawa 3.9

Charts Here
http://www.chpc.biz/demographia.html

Toronto and Vancouver of course are at the top of the list.

#17 conan on 01.25.17 at 8:04 pm

Where did you get power for the truck again? A lamp/ hydro post with an exterior electrical plug? I don’t think I have seen that before. Sure you were not running a cord to the lobby of some building and hope nobody noticed?

Did you swap dot com shares for the juice? Sort of Pre IPO your power? It was madness back then. Guess what? It is madness right now. I think things are peak valued myself.

#18 crazed anda little confused on 01.25.17 at 8:05 pm

well I sold 2 socks in sept and October2016 to keep my gains
TWX and Honda
now its 23% and 4 % higher. keeping it is US dollars. bought Agricultural ETF and 1 REIT and one Bond ETF
up 13% ,down 4 % and down 2%.
Im not perfect but I willing to get out with some gains and getting diversified because I really don’t know what the f%&@k will happen in the near future. I don’t listen to everything garth says . I do buy individual stocks and a few gics. just in case.

but I believe there will be a small correction simply because profit growth does not reflect the 220% growth in the stock market currently.
right now it running on I expect” not on what is really happening

#19 Warren- the lagging indicator on 01.25.17 at 8:09 pm

Garth – “a “massive” tax reduction for both corporations (who pay more now than those in Canada) as well as the middle class (who pay a lot less).”

======

Wow, does this mean that taxing corporations more, actually is good for the middle class in that their taxes are lowered?

My God Garth, stay away from the climate change issue. Man, you are a glutton for punishment.

#20 pedrito fernandez on 01.25.17 at 8:12 pm

The bargaining power for Trump is to threaten corporations to raise or reduce taxes. Most corporations are American in their head quarters, but they have no nationality or patriotic inclinations. Corporations by law seek profits, wherever it comes from.

Trump will have to lower tax rate first to get the bargaining power, otherwise corporations will just move overseas if Trump tries to disrupt current trade regimes.
It is very costly for a corporation to restructure operations and supply chains to adjust to new trade regimes.

So this time I agree with the main op.

#21 crazed anda little confused on 01.25.17 at 8:12 pm

but I do agree once the little bump occurs . the market will go up 7 % ..9 % easily even with % rates hikes (2-3) because its interpreted as the econ is doing well. not as econ will crash because of it

#22 Warren- the lagging indicator on 01.25.17 at 8:16 pm

Looks like we are going to have two more years or so of slowly declining unemployment numbers to about the 4 percent mark in the US then a recession will likely hit as the unemployment rate rapidly increases once again rhythmically, like a nice semi-periodic sine wave strives to do. This is partly due to holding the line on super low interest rates for 6 years and as many months. The other parts, I do not know.

ps- Why does there seem to be such a disconnect from my perception of the real job climate in the US and these numbers. Maybe I have been brainwashed by the Trumpeteers and the perceived need for work is disguised racism or people are always acting disenfranchised and should just shut up.

#23 common sense on 01.25.17 at 8:20 pm

#17 Conan

Your post reminded me of a summer’s day back in the 90’s walking through Toronto and seeing a group of street people casually sitting on a couch on a sidewalk, intently watching a mid day soap opera on a rummaged TV set that was wired into a street lamp for juice. Standing there stunned at this scene, one of the gang noticed me and piped up “All the luxuries of home right here for nothing.” with a big grin on his face. I had to smile and laugh as well…..

#24 NoName on 01.25.17 at 8:22 pm

#14 Kevin’s Fanzone on 01.25.17 at 7:46 pm

One ten billion dollar wall – once – will save 20 billion a year in illegal immigration. Its funny how so many people seem to forget that undocumented workers are breaking the law.

—-

Let me fix that for you.

Its funny how so many people seem to forget that documented law abiding employers are breaking the law by hiring illegal undocumented immigrants.

#25 InvestorsFriend on 01.25.17 at 8:33 pm

“We Americans” is a myth so is Team Canada

20 pedrito fernandez on 01.25.17 at 8:12 pm said

Most corporations are American in their head quarters, but they have no nationality or patriotic inclinations. Corporations by law seek profits, wherever it comes from.

*************************
Agreed, corporations will dupe people into thinking that lower taxes and higher profits are good for “Team America” In reality it is good for those corporations and may harm a lot of regular Americans due to lost tax revenue. We shall see.

Look after yourselves. Economically we are individuals not some giant team Canada or team America.

#26 Cici on 01.25.17 at 8:36 pm

I’ve got some inheritance money stuck in a brain-dead GIC, but prior to his untimely passing, my uncle made it clear that he did not want me to invest in real estate or equity markets.

I do what I want with my own cash, but still consider the inheritance his hard-earned money, not my own. So for the next three years it stays in GICs, but after that it’s going to be earmarked for a business.

#27 A belieber on 01.25.17 at 8:36 pm

(a) broadcast continuous business and financial news for eight hours a day, (b) feed the meter, (c) man the mini-digital cameras and audio feed, (d) manage the wireless broadcasting equipment
……………………………………..

That sounds like a pretty cool youtube channel Garth, how many subscribers did you have?

The whole setup sounds expensive tho: digital cameras, wireless broadcasting equipment, a truck? You should’ve just used an iPhone and the starbucks wifi.

#28 Vancouver Troy on 01.25.17 at 8:38 pm

Great post tonight Garth.

Always an interesting read.

#29 just say no on 01.25.17 at 8:41 pm

smurfs…smurfing…smurfsville….that is how we sell expensive houses…welcome to Canada. I love Chinese food yum yum.

#30 traderJim on 01.25.17 at 8:45 pm

I haven’t been paying enough attention.

Is Trump going to get his entire agenda done in a few weeks by executive order?

I know Obama set some bad precedents in this regard, but is Trump going to be able to get all this done that easily?

I was envisioning some epic congressional battles.

Seems like Trump just made massive sweeping changes to immigration and all I heard about it was that CNN is still whining about crowd sizes and illegal voting numbers.

But I don’t really know as I don’t watch tv news anymore. Life is so much better when you don’t listen to those idiots.

#31 cramar on 01.25.17 at 8:50 pm

Just heard today that the TSX was the best performing stock market in the world in 2016! Up 18% on the year!! Even more since end of Dec. Awesome!

Don’t write off maple yet.

Oil doubled last year. Don’t expect it in 2017. — Garth

#32 Pete on 01.25.17 at 8:56 pm

Trump makes early move on restricting abortions around the world -REUTERS
—————————————
Good. Now I’d like to see him tell Canada (and other trading partners) that they have to modify their foreign and domestic policies regarding abortion to comply with his or lose any hope of maintaining their coveted position in free-trade agreements. Canada would, of course, be free to choose any position on the matter that they want. It would be very satisfying to watch Canadian lefties squirm.
To our American readers: Please tell Trump that you expect him to play hardball and not let other countries benefit from his ‘Making America Great Again’ if they are not on board with his policies.

Get off my blog. — Garth

#33 Joseph R. on 01.25.17 at 9:03 pm

#14 Kevin’s Fanzone on 01.25.17 at 7:46 pm
One ten billion dollar wall – once – will save 20 billion a year in illegal immigration. Its funny how so many people seem to forget that undocumented workers are breaking the law.

———————————————————–

Funny how so many people believe a wall will stop visitors from overstaying their visas.

#34 Joe2.0 on 01.25.17 at 9:12 pm

Things are getting better…
Sure what ever you say.
Checked the price of food lately??

#35 Nate on 01.25.17 at 9:20 pm

For anyone who wishes to take advice from a stranger on the Internet…. I strongly suggest taking a look at investing in uranium companies.

The uranium market is just starting to come out of a brutal bear market….lots of money will be made the next 3+ years

#36 Barb on 01.25.17 at 9:23 pm

“You have no idea what it feels like seeing your awesome mobile studio delivering drywall.”

——————————–
I read with great interest your reminiscing of what you did a mere 17 years ago.

Sounds like it beat the hell out of the work we did to deep-six 1,100 apple trees that we’d planted a scant 15 years earlier.

At least you were able to free yourself.

Never having heard of the word fallow, I, on the other hand, needed to do something–anything–with the land. And built a golf course. For twice what I thought it would cost.

Wanna swap?

#37 Self Directed on 01.25.17 at 9:29 pm

#8 For those about to flop… on 01.25.17 at 7:27 pm
…………………………………………………….
Mr. Flop… I’ve been enjoying your ‘Pink Snow’ posts. Keep em’ coming. I’m intrigued by the psychology behind. This blog needs more listings!

Let just say, if I was Bruce Dickinson… I’d ask you to really explore the space.

https://vimeo.com/55624839

#38 Joseph R. on 01.25.17 at 9:42 pm

#30 traderJim on 01.25.17 at 8:45 pm

I heard about it was that CNN is still whining about crowd sizes and illegal voting numbers.

—————————————

You are confused. Trump is the one whining about crowd sizes and illegals voting numbers.

#39 upside down on 01.25.17 at 9:45 pm

#24 NoName

Let me fix that for you.

Its funny how so many people seem to forget that documented law abiding employers are breaking the law by hiring illegal undocumented immigrants.

===

Business is opportunistic.

It’s not their job to keep illegal immigrants out of the country, they are taking advantage of the opportunity.

#40 Andrew Woburn on 01.25.17 at 9:54 pm

#24 NoName on 01.25.17 at 8:22 pm
Its funny how so many people seem to forget that documented law abiding employers are breaking the law by hiring illegal undocumented immigrants.
======================

Hard to disagree with that statement. This is one of the things this Canadian finds so hard to understand about America. As far as I know, it is illegal to hire undocumented aliens in the US. As far as I can see, it would be much cheaper to enforce such laws (and way more effective) than to build a wall.

Apparently most Americans are enraged by illegal immigration to the point they will vote for His Clownship. I read the other day that US feminists who despise Trump voted for him anyway because he promised to deal with illegals.

Yet it seems almost no employer ever has faced more than a modest fine for hiring illegals. Yes. I understand that US businessmen benefit from lax enforcement but why don’t voters demand action. In many places they even directly elect state attorneys who seem to have all the power needed to take action.

What am I missing? Can any of our American readers help me understand?

#41 upside down on 01.25.17 at 9:54 pm

#33 Joseph R.

Funny how so many people believe a wall will stop visitors from overstaying their visas.

You need to catch up on current technology.

It’s only a mater of political will to find them, deport them and never again issue them visa.

#42 Tony on 01.25.17 at 9:56 pm

Re: #26 Cici on 01.25.17 at 8:36 pm

Buy platinum certificates for the long run. I didn’t think my grandchildren would live to see DOW 20,000. I know they’ll live to see DOW 5,000 again. I’ve been sitting back and watching the markets since the upset in the election. I figure another 4 to 5 months of watching the markets and then I’ll go back to day trading.

#43 John on 01.25.17 at 10:00 pm

Stock up on Depends.

#44 Tony on 01.25.17 at 10:08 pm

Re: #35 Nate on 01.25.17 at 9:20 pm

Uranium has been tracking the moves in oil since the election last November. It looks like uranium will put in a double bottom when oil drops into the low forty range in about 2 months’ time. A lot of people are touting Fission Uranium Corp. Denison Mines Corp would be a buy in the low 50 cent range. I personally think Nexgen is a fraud similar to Bre-X so time will tell if I’m right.

#45 VicPaul on 01.25.17 at 10:12 pm

#5 YVR
I think you’re right – I’m up 8% on xef (bought the morning after Brexit) but it’s been waffley lately. Possibly, when more of the unknowns ( both known and unknown) of the trade fallout with England become clearer it will begin to solidify. Yeah, I ascribe to “hopeful investing” style. )

M53BC

#46 Kool Aid on 01.25.17 at 10:12 pm

Will Canada negotiate a fair trade deal with our neighbors, no new additional border tax would be welcomed news.

We’re already in an era of elevated taxes, debt and stretched asset values, Dow 20K, trim time.

#47 acdel on 01.25.17 at 10:16 pm

#32 Pete

Seriously you dumb jerk; grow up!

#48 The Great Gazoo on 01.25.17 at 10:24 pm

Garth, you are an interesting dude that’s for sure.

Preferred shares up again today, ZPR up another 1.5% today.

http://www.stockwatch.com/Quote/Detail.aspx?symbol=ZPR&region=C

Hopefully more gains over the next year or two – slow and steady is fine with me and collect the dividend along the way.

5 year Canada bond yields closed at 1.17% today – will be interesting to see how this plays out over the next year.

http://www.stockwatch.com/Quote/Detail.aspx?symbol=ZPR&region=C

#49 Andrew Woburn on 01.25.17 at 10:26 pm

Another piece of the Victoria puzzle –

“After a record number of passengers flowed through Victoria International Airport last year, YYJ is looking at speeding up expansion plans.

James Bogusz, the airport’s vice president of operations, says the trend of high passenger volume is expected to continue.

“We actually saw 1.85 million passengers, which for us is an increase of 8.5 percent from last year,” he told All Points West guest host Richard Zussman.

“It was record-breaking, and, honestly, a little unexpected, but nonetheless fantastic.”

Bogusz says the trend is expected to continue and it is domestic traffic driving volume — particularly from Vancouver to Victoria.”

http://www.cbc.ca/news/canada/british-columbia/victoria-airport-yyj-1.3950941

#50 upside down on 01.25.17 at 10:36 pm

That studio for fin news in a truck at Bay street was a real funny business in 2000.

At that time the Bloomberg terminal with the keyboard ruled already and Toronto became the major distribution hub for North America for Internet video porn, with a feed from Amsterdam, operated at the old carpet factory at King and Dufferin, utilizing all the available telco uplinks, chewing up more bandwidth than any other commercial customer.

#51 upside down on 01.25.17 at 10:46 pm

#40 Andrew Woburn

Apparently most Americans are enraged by illegal immigration to the point they will vote for His Clownship. I read the other day that US feminists who despise Trump voted for him anyway because he promised to deal with illegals.

Yet it seems almost no employer ever has faced more than a modest fine for hiring illegals. Yes. I understand that US businessmen benefit from lax enforcement but why don’t voters demand action. In many places they even directly elect state attorneys who seem to have all the power needed to take action.

What am I missing? Can any of our American readers help me understand?

You are missing the bigger scope of money.

This can help:

http://www.zerohedge.com/news/2017-01-25/here-are-23-billion-reasons-why-sanctuary-cities-are-so-upset-trump

#52 Doug t on 01.25.17 at 10:52 pm

T2 meeting with Trump is equal to showing up with a knife at a gun fight – all he cares about is photo ops and being treated like royalty pffft – this country has always bowed down to the almighty USA and will continue to for many years to come until our American overlords convince (force) canada to become the 51st state. As a country we have got to stop acting like some goofy bunch of overly apologetic, uber accepting of everything and everybody, bend over and sell ALL our resources to anyone, maple leaf scarf wearing, Mountie proud HA, maple syrup, Tim hortens, hockey nutty bullshit wimpy bunch of “peace keeper” clowns and grow a pair.

RATM

#53 upside down on 01.25.17 at 11:01 pm

You have no idea what it feels like seeing your awesome mobile studio delivering drywall.

It’s your karma with real estate.

#54 IPOdude on 01.25.17 at 11:08 pm

Garth why did you not IPO that very cool webcasting show truck? I recognize the photo from the corner of Front and Simcoe or maybe Wellington. Thanks for sharing

#55 For those about to flop... on 01.25.17 at 11:18 pm

I live up on the midtown plateau around 41st, for my GTA buddies that is up above sea level, maybe 300/400 ft so we get more snow than downtown normally.

The council took 3 weeks to come in here and put some sand down so people in their Honda Civics could get out to the cleared main roads.

This is where it gets kooky, although it is mild at the moment, there is still a fair wack of winter to come and the street cleaning crew has come and put the signs out that tomorrow they are coming to sweep it up.

Why?

Just to piss taxpayers money against the wall?

Leave the sand down for another month or so, just so the folks who missed a week or so of work can make up for lost time so you chumps can waste our taxes again.

Haven’t you guys got a bike lane to build somewhere…

M42BC

#56 Figmund Sreud on 01.25.17 at 11:26 pm

Things can always get worse.
_______________________________

Oh? Is that even a possibility?

Consider: … in his inaugural address, Trump chose words never before heard in an inauguration speech: … words like bleed, carnage, depletion, disrepair, ripped, rusted, sad, stolen and trapped.

I’m assuming, therefore, Trump elected to choose these words to most accurately describe the United States as he takes up the helm. No?

F.S. – Comox, BC. (… just musing out loud!)

#57 Nonplused on 01.25.17 at 11:43 pm

“You have no idea what it feels like seeing your awesome mobile studio delivering drywall.”

Well, some would say that’s a better calling than financial news reporting. I haven’t watched BNN in years because I realized one day I wasn’t learning a damn thing from it. I’m sure Garth your programming would have been a lot better but compared to what’s on TV these days I think the drywallers have the more noble profession.

#58 Joe Schmoe on 01.25.17 at 11:48 pm

Man, Garth was ahead of the curve on the news van…if he was selling tacos instead of news, he would be rich by now!

Right concept, wrong product.

That picture with the crappy apple computer is gold!

#59 Ronaldo on 01.26.17 at 12:28 am

#35 Nate
”For anyone who wishes to take advice from a stranger on the Internet…. I strongly suggest taking a look at investing in uranium companies.

The uranium market is just starting to come out of a brutal bear market….lots of money will be made the next 3+ years”
——————————————————————

Nate,

Note below what I said back on December 13th. That was the time to get into copper, zinc and uranium companies. Huge gains since.

—————————————————————-

”#94 Ronaldo on 12.13.16 at 11:55 pm

#70 Souvereigninternational on 12.13.16 at 10:08 pm

”But buy low would have been a great strategy since last fall.”
—————————————————————–
”It absolutely was. Huge gains in the precious metals and energy sector. Base metals next, copper right now and uranium to come. Absolute no brainers. Right Mark?”

#60 For those about to flop... on 01.26.17 at 1:05 am

The Fall and Rise of the U.S. Economy, from the Wall Street Crash until Now.

I know there are a lot of people on here that have been arguing this point so I find this article timely.

Please enjoy…

M42BC

https://howmuch.net

#61 jay on 01.26.17 at 1:14 am

Trump should build a bear moat on the Mexican border,it would be a tourist attraction as well as a deterrent. http://www.castle.ckrumlov.cz/docs/en/zamek_1nadvori_medrek.xml

#62 NoName on 01.26.17 at 1:25 am

#39 upside down on 01.25.17 at 9:45 pm

Business is opportunistic.
It’s not their job to keep illegal immigrants out of the country, they are taking advantage of the opportunity.

—-

Nothing wrong with that, but if your business is only relaying on paying sub-par wages to stay afloat, maybe it’s time to rethink business strategy, there is nice write-up somewhere online about strategic vs opportunistic business.

#63 jay on 01.26.17 at 1:29 am

http://www.cnbc.com/2017/01/25/mar-a-lago-membership-fee-doubles-to-200000.html

#64 mark on 01.26.17 at 1:41 am

Was just reading an article in Macleans on Ezra Levant. Interesting contrast to your story Garth. That idiot had to burn through $46 million before he realised what you did 15 years earlier was the way to go.

#65 For those about to flop... on 01.26.17 at 1:47 am

Not pure Pink Snow as I don’t know what they paid for it,but it’s not everyday you see a house get a 50% price reduction.

Pretty sure the realtor wasn’t being greedy, just accidentally knocked the X 2 buttons…

M42BC

1058 FULTON AVE WEST VANCOUVER

Nov 22:$5,950,000
Jan 25: $2,975,000
Change: – $2,975,000.00 -50%

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

#66 Jonathan on 01.26.17 at 2:44 am

Added some ZPR at just below $9 mark when it was getting clobbered, happy to see where it is today almost a year later while DRIP-ping monthly. In it for the long haul, will stick to the balance, sell hot buy cold.

#67 Good Ridden to the Van... on 01.26.17 at 2:49 am

I like what you did with the van, way ahead of your time then.

But good that Y2K and the Dot.com bubble came along.

It got you out of that van, into Parliament as a Finance Minister, head of your own successful Investment firm and important to me, here Blogging about what matters economically to Canada with a dollop of humor.

Good ridden to the van, glad for what you have become instead.

bsant

#68 You're starting to understand Trump... on 01.26.17 at 2:58 am

Like how you captured Trump in prose today Garth. The best I have read yet is from YouTube Righty, enfant terrible, Paul Joseph Watson:

“Trump says himself that he was part of the establishment and that he has now turned against it to tear it down. That’s why they hate him.

The media, Wall Street, Hollywood, big businesses, neo-cons, neo-liberals, globalists.

The establishment hates Trump. Trump is the ultimate counter-culture icon.

He’s a middle finger in human form.”

True. Unpredictable. “The Apprentice: Washington”.

Why we need guys like you Garth to wave away the smoke and tell us what is economically real.

bsant

#69 Henry Morgan on 01.26.17 at 3:00 am

By the time Trump has spent enough Trillion$ on building high quality US infrastructure that he can die a happy man, a lot of that will have spilt over into Canada.

#70 cold-war on 01.26.17 at 3:22 am

http://www.news.com.au/technology/innovation/inventions/chinese-state-tabloid-sends-nuclear-message-to-trump-administration/news-story/da2bc3b09a000f0147d95d306439c36a

If Trump build the war, I can see mexico real estate rise when china buys up its land to install missle silo on it to point the USA

#71 Stock Picker on 01.26.17 at 4:08 am

As I said….I love what Trump is doing for the market. The oil space is rocking, you just have to know what to buy. I doubled my money in a driller as reported on the buy. Even weighty BMO is up 4 bucks in a month since I gave notice….now topping $100. Can anyone say ‘split’?

Profits will come when businesses are unleashed. I bought a services company on Monday which is up 10% on the week….but I think a double is in the cards as this is something Trump just touched directly. I laugh at the ‘experts’ who won’t touch it because it has a 63 P/E….on last years numbets…….no vision of where profits will be in a couple of quarters and they’ll all have missed the rally. But that’s why stock pickers don’t shovel snow.

Ryan is right , these points in time are rare and profitable, but at same time less than one tenth of one percent of people have the balls to get rich.

#72 traderJim on 01.26.17 at 6:34 am

Watching Bloomberg TV (necessary evil once in a while when you swing trade) I see headlines scrolling by: “Trump will have difficulty finding workers to build wall”
“Mexican leader might not visit Trump if he builds wall”
“Wall to cost $14 Billion”

It’s so funny, the people who think government can and should do everything, from educating my kids to telling me what size soft drink I can buy, now apparently believe that building a wall is an impossible task.

If building a simple wall is impossible for government to do, why on earth would we entrust it to have any role in our lives whatsoever?

$14 billion seems wildly under-estimated, but maybe not. Roughly $1,325 a foot? I guess that’s do-able?

I’m still optimistic that he builds the wall, then grants a amnesty to illegals, and only deports those who commit a crime or fail to start the legalization process (which they would only do because they have a criminal background).

Jury’s still out.

#73 traderJim on 01.26.17 at 6:57 am

A few ‘real estate will never go down’ believers here always mention continued immigration as a cause for ever increasing prices.

No mention of the fact that a roughly equivalent amount of housing units are built every year.

No shortage of land in Canada, although government does exacerbate the supply issue with so many restrictions.

Immigration is clearly great for economic growth and vibrancy, and has very little to do with outrageous housing prices.

But that doesn’t mean that massive flows of (illegally obtained? fraudulent? legitimate?) money from China is not having a major effect. Vancouver looks like pretty solid proof of that.

Capital flows are not equivalent to immigrant flows.

I am all in favour of controlling the flow of immigration of course, and it would be nice to favour people who are more likely to contribute to society than to take away from it.

So how about some more doctors, bricklayers, and plumbers?

I don’t care what colour they are, I’m more concerned about whether they are tolerant of other religions and opinions, and if they believe in basic values such as democracy and human rights.

But no, it seems our immigration policy will continue to be ‘family’ based, meaning: get the young ones in first, then they can bring in all of their elderly relatives for free healthcare in the most expensive 2 decades of their lives.

Just one more reason why it’s so difficult for the average person to have decent access to healthcare here.

#74 pBrasseur on 01.26.17 at 7:32 am

Stocks. I have to admit I sold a bit of profit at the beginning of the year, but only because I plan to spend the money. Correction always a possibility but this market is not scary.

Confidence is returning, it has been in the works for a while and that’s a really good thing.

Of course Canada may join the party at the beginning but is going to get killed when rates rise.

#75 Zen Headspace on 01.26.17 at 7:45 am

#40 Andrew Woburn:

“What am I missing? Can any of our American readers help me understand?”
——————————————————————

An American cannot help you understand, because they do not understand themselves. Asking an American to explain themselves is like asking someone to bite their own teeth. One cannot see their own eyes with their own eyes.

Americans have the lowest level of self perception of any nationality on the planet. In other words, their perception of themselves bears no correlation to reality. They are victims of a culture of delusion, falsehoods, and fantasies, propagated by their supreme deity: the almighty media.

Why do Americans believe that “illegal immigrants” are the bane of their existence? Well, for starters, America is the single most systemically racist nation on the planet.
It’s in their blood. They hate because they just do.

Although they have created a fake written credo of “equality” and a “melting pot society”, the chasm that exists between the different races and socioeconomic classes in their country is astoundingly monumental.

FACT: It is a country that established itself by means of slavery.

Free labour built and enriched America. The foundations of today’s economy and capital base could not have been constructed had not the capitalists of 200 years ago used the lives and sweat and toil of innumerable kidnapped African men and women to create their own wealth.

Americans still rely on illegal labour to thrive. At the same time, they hate foreigners and especially those that do not have white skin. They would enslave them and work them to death still today, if not for having to contend with the wrath of the world (i.e., economic sanctions).

In a way, though, they still do. It’s called low minimum wage, underpaid illegal immigrant labour, and mass incarceration of black people for the purpose of supporting the private penal system facility business.

Americans do not see themselves in this way. it takes someone on the outside looking in to really explain what America is.

#76 jess on 01.26.17 at 7:49 am

Trader Jim

3 to 5 million felonies committed? a massive, multi-million person criminal conspiracy?
“You have people that are registered who are dead, who are illegals,” said Trump, who has called for an investigation. “You have people registered in two states. They’re registered in New York and New Jersey. They vote twice. There are millions of votes, in my opinion.”
https://www.brennancenter.org/analysis/debunking-voter-fraud-myth

“Mark Swedlund, a database expert whose clients include eBay and American Express, look at the data from Georgia and Virginia, and he was shocked by Crosscheck’s “childish methodology.” He added, “God forbid your name is Garcia, of which there are 858,000 in the U.S., and your first name is Joseph or Jose. You’re probably suspected of voting in 27 states.”
http://www.rollingstone.com/politics/features/the-gops-stealth-war-against-voters-w435890
=================================
voter suppression
“Ten states now have unprecedented restrictive voter ID laws. Alabama, Georgia, Indiana, Kansas, Mississippi, Pennsylvania, South Carolina, Tennessee, Texas, and Wisconsin”
https://www.scribd.com/document/100321868/The-Challenge-of-Obtaining-Voter-Identification
Joshua A. Douglas, a University of Kentucky College of Law professor who specializes in voting rights and election law
http://www.uky.edu/electionlaw/analysis/challenge-hb-589-north-carolinas-voter-id-law
==============
About 25 percent of the 2016 votes, including almost all of Pennsylvania, were cast on paperless, computerized voting machines.

Investigative reporter Greg Palast obtained lists compiled by Crosscheck in 2014 of alleged double registrants from several states. The program is supposed to match first, middle and last name, plus birth date; it also provides the last four digits of a Social Security number for additional verification. But Palast found that a quarter of the listed names lacked a middle-name match, that the system ignored designations of Jr. and Sr., and that Social Security numbers weren’t included on any of the lists he obtained.

Greg Palast investigative reporter:
Crosscheck database in action:
Trump victory margin in Michigan: 13,107
Michigan Crosscheck purge list: 449,922

Trump victory margin in Arizona: 85,257
Arizona Crosscheck purge list: 270,824

Trump victory margin in North Carolina: 177,008
North Carolina Crosscheck purge list: 589,393

Trump won Michigan by fewer than 11,000 of votes out of nearly 4.8 million votes cast
https://www.democracynow.org/2016/12/13/greg_palast_by_rejecting_recount_is

#77 jess on 01.26.17 at 8:04 am

new ambassador to china wants to promote our canadian values

How 2 Canadians led nearly 200 companies they claim to know nothing about
http://www.cbc.ca/news/investigates/signatures-nominee-directors-panama-papers-1.3951784

#78 The real Kip on 01.26.17 at 9:01 am

Dow hits 20,000,US debt hits 20-trillion. When that baby pops it’s gonna hurt.

#79 TurnerNation on 01.26.17 at 9:17 am

How now Dow Cow?

From Stockwatch.com value added news feed today:

“As of Friday, the trailing P/E ratio for the S&P/TSX composite was 23.4 and the 10-year bond yield ratio was 1.75 per cent. This adds up to 25.15, well above the historical average of 21.2. Mr. Barlow uses historical charts which suggest deeply negative market returns in the next two years, but he adds that profit growth should return P/E ratios into more attractive territory. “

#80 Johnny Boy on 01.26.17 at 9:21 am

#76 jess on 01.26.17 at 7:49 am

Trader Jim

3 to 5 million felonies committed? a massive, multi-million person criminal conspiracy?
“You have people that are registered who are dead, who are illegals,” said Trump, who has called for an investigation. “You have people registered in two states. They’re registered in New York and New Jersey. They vote twice. There are millions of votes, in my opinion.”
___________________________________________
His opinion is worth about as much as my dogs opinion.

“It’s okay to disagree with the thoughts or opinions expressed by other people. That doesn’t give you the right to deny any sense they might make. Nor does it give you a right to accuse someone of poorly expressing their beliefs just because you don’t like what they are saying. Learn to recognize good writing when you read it, even if it means overcoming your pride and opening your mind beyond what is comfortable.”
Ashly Lorenzana

#81 chopstix on 01.26.17 at 9:23 am

favour Garth: since it’s the beginning of the yr, how about giving us your 10 best books/sites/subscriptions for investors…and i’m not talking those on here with serious coin and salaries…even for the average ‘joe’ starting out with 5-10k, and at different points in life.
however, if you’ve already done so, sorry for missing such, but kindly reply with the link…thanks, Garth…happy 2017.

#82 WDTV on 01.26.17 at 9:27 am

Its Heather and ‘Day Trader Dave’ !! Guess Doug was working the cameras!

#83 Ole Doberman on 01.26.17 at 9:52 am

Gotta love Trumps transparency – what other politician has been this open daily:

“The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.”

Message from facebook

#84 Bond Junkie on 01.26.17 at 9:54 am

Food for thought… first off great article Mouldy.

http://projects.thestar.com/panama-papers/canada-is-the-worlds-newest-tax-haven/

However, you guys can’t have it both ways. Where do you think all the accountants, lawyers, banksters, and shell company administrators are employed that are perpetuating said GLOBAL scheme? GLOBAL!! Of course Toronto.

I’ve said it many, many times before, too many people here with too much money. Cause and Effect. There are larger powers at work that minions like us (me) are incapable of ever comprehending. Anybody watch the Matrix trilogy? Worth revisiting.

Not saying we keep going to the moon either, but she ain’t going down Alice. End of story.

-Bj

#85 jaybee on 01.26.17 at 10:31 am

Those shows that you turned out for the traditional networks were good stuff Garth. “Looking out for your financial health; I’m Garth Turner”. That stuff helped me get interested in finance at a young age.

#86 Catalyst on 01.26.17 at 10:36 am

In Mar 1999 dow hit 10k….in May 2005 the dow was at 10500….in July 2010 it was 9700..

I wouldn’t use these markers as some sign of the birth of a new growth period because that simply hasn’t bourne out to be the case.

#87 crowdedelevatorfartz on 01.26.17 at 10:38 am

@#76 Jess
“Ten states now have unprecedented restrictive voter ID laws. ”
*******************************************

Old News.
The Economist commented on this at least six months ago. The majority of the 10 states were Republican strongholds that wanted victory at any cost.
Democrats tried challenging the ID laws but ran out of time.

#88 Johnny Boy on 01.26.17 at 10:47 am

#68 You’re starting to understand Trump… on 01.26.17 at 2:58 am
Like how you captured Trump in prose today Garth. The best I have read yet is from YouTube Righty, enfant terrible, Paul Joseph Watson:
“Trump says himself that he was part of the establishment and that he has now turned against it to tear it down. That’s why they hate him.
The media, Wall Street, Hollywood, big businesses, neo-cons, neo-liberals, globalists.
The establishment hates Trump. Trump is the ultimate counter-culture icon.
He’s a middle finger in human form.”
True. Unpredictable. “The Apprentice: Washington”.
Why we need guys like you Garth to wave away the smoke and tell us what is economically real.

bsant
……………………………………………………………………..
It is going to be tough waving away the smoke. After watching his first post election interview I was astonished. The power of holding two contradictory beliefs in one’s mind simultaneously, and accepting both of them… To tell deliberate lies while genuinely believing in them, to forget any fact that has become inconvenient, and then, when it becomes necessary again, to draw it back from oblivion for just as long as it is needed, to deny the existence of objective reality and all the while to take account of the reality which one denies – all this is indispensably necessary. Even in using the word doublethink it is necessary to exercise doublethink. For by using the word one admits that one is tampering with reality; by a fresh act of doublethink one erases this knowledge; and so on indefinitely, with the lie always one leap ahead of the truth. We have all just traveled back in time. Welcome to 1984.

#89 [email protected] on 01.26.17 at 11:06 am

@Tony I jumped back in to Teck.Us long term kaputs. G/l all Schlock pickers.

#90 pBrasseur on 01.26.17 at 11:09 am

People like scary numbers like the US presumably owing 20T, only a good part of that is money owed to social security that don’t need to be serviced.

This is the true picture of the public debt situation in the world. Actual borrowed money that needs to be serviced.

The situation of the US is not that bad and Canada is much worse. This fact can be verified by the amounts it costs to service the debt. Canadian taxpayers already pay more and it’s going to get worse, possibly much worse.

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html

#91 traderJim on 01.26.17 at 11:13 am

#80 Johnny Boy
“That doesn’t give you the right to deny any sense they might make. Nor does it give you a right to accuse someone of poorly expressing their beliefs just because you don’t like what they are saying.”

I have a right to do whatever I like, so long as I don’t harm anyone.

I can deny, accuse and judge to my heart’s content, sorry if that offends you or this Ashly moron.

Even legislation can’t make me think what you want me to think, although ‘progressives’ sure like to believe it.

Or more likely they just want to silence anyone who disagrees. Witness the constant lefty protests on campuses to prevent talks by anyone they disagree with.

Re: Voter fraud. You people who still don’t get Trump are so slow. Several people on this blog have explained it to you over and over again.

Trump’s new round of tweets about voter fraud have exactly the same intention as his first round: To get the media talking about voter fraud 24/7, so that he can then get legislation passed to have voter ID’s mandatory.

Gawd, can you not think one step ahead, even when people explain what the next step is?

#92 Smallfry on 01.26.17 at 11:21 am

People of the blog, I’m at a loss as to what to do. I’m anxious and despondent about the world right now, how do I sell my soul for the almighty dollar so comfortably as you have all done?

#93 pBrasseur on 01.26.17 at 11:23 am

Look at that list again, in terms of borrowed public money (federal + others) Canada is sitting between France and Spain, a country in crisis and the other on the edge of it.

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html

But it doesn’t stop there, household debt in Canada is the highest of G7 countries. As a results Canada is one of if not the most indebted nation in the world.

Think about that for a minute… Hope you like T2 because you’re going down with him!

#94 Doug in London on 01.26.17 at 11:35 am

So, are US equities overpriced and ripe for a correction? I don’t know, but when I read the Globe and Mail Report on Business I still see a lot of analysts who advise caution. That suggests more upward potential yet. When it seems like everyone is optimistic, as it appeared in 2006 and 2007, that’s when you should be cautious and take some profits. Then again, did I hear that European equities were on sale?

#95 TurnerNation on 01.26.17 at 11:54 am

The other day I slammed my city as being a hellhole of unionistas, sunshine listers.

Capitalism doesn’t pay in this town.

Here they tried giving themselves a 50% raise. I bet the police union – the single biggest line item on property taxes – is jealous.

This hoarding of funds would cause tuition hikes and more debt costs upon us tax slaves.

http://www.cbc.ca/beta/news/canada/toronto/ontario-colleges-presidents-raises-1.3953066

Advancded Education Minister Deb Matthews is ordering the boards of Ontario’s colleges to revisit proposed pay hikes that would have seen salaries for senior executives rise as much as 56 per cent. (Frank Gunn/Canadian Press)

#96 att on 01.26.17 at 11:56 am

I like Ryan translated through you Garth.

#97 For those about to flop... on 01.26.17 at 12:02 pm

Pink Snow falling in Surrey.

These guys bought in at $775k at the peak of the market early last year.

Just trying to get the bulk of their money back.

This post is for you Selfie…

M42BC

2745 Cranley Dr Surrey

Dec 29:$1,188,000
Jan 25: $799,000
Change: – 389000.00 -33%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA3NlhEVA==

#98 calgaryPhantom on 01.26.17 at 12:05 pm

XEF or XIN ?

With no intention of timing the currency market, does it make sense to hold a non hedged etf for international exposure? Or is this extra diversification not worth it?

#99 Newbie on 01.26.17 at 12:11 pm

I like the last sentence)

#100 Ponzius Pilatus on 01.26.17 at 12:19 pm

Don’t diss drywall.
That’s where the money has been during the last 15 years in Vancouver and GTA.

#101 Ponzius Pilatus on 01.26.17 at 12:37 pm

#50 upside down on 01.25.17 at 10:36 pm
That studio for fin news in a truck at Bay street was a real funny business in 2000.

At that time the Bloomberg terminal with the keyboard ruled already and Toronto became the major distribution hub for North America for Internet video porn, with a feed from Amsterdam, operated at the old carpet factory at King and Dufferin, utilizing all the available telco uplinks, chewing up more bandwidth than any other commercial customer.
—————
It’s been said that the porn industry has been the biggest driver and beneficiary of electronic media.
VHS, HD and the Web come to mind.
Is this why the Arabs hate us so much?

#102 Euro observer on 01.26.17 at 12:40 pm

Dow will hit 25 k mid to short term.

35 k in the next decade – decade and a half.

But inflation will come in big in between. So big that people on fixed income will be destroyed. Zero interest rates are not feasible and currencies will be destroyed.

#103 Euro observer on 01.26.17 at 12:43 pm

#84 Bond Junkie

Very few people in Toronto have money. Most have debt and insane ‘house valuations’. Incomes of 75 k per house hold can not justify shacks of 1.3 mil.

I know a banking VP with wife teacher who can not afford a town house in Toronto.
The whole place /GTA is far overrated.

#104 Sheldon Cooper on 01.26.17 at 12:47 pm

Forget about Pink Snow falling in Vancouver for a moment and let’s go all out fantasy.

The highest priced property for sale in the GVA at the moment is a property down in Southlands that is on the market for 38 million.

Originally built in 1929 ,it was last purchased in 2014 for 9.5 million and since then it’s assessment has basically doubled to 18million ,only 20million shy of asking.

Property taxes are a measly 28k a year,don’t worry they should be going down soon.

No doubt looking for a high roller, but the bit that made me smile the most was the mortgage calculator attached to the list stated that if you could only put 5% down your monthly payment would be close to 160k and if you could put 20% down then the hit would be 132k a month.

Paul Allen is the only guy I know that would not flinch at these numbers.

M42BC
————-

Don’t forget, this is with after tax money. Unless, of course, you’re from China and you make money in China and don’t pay taxes because Trudeau will shield you from having to pay taxes. After, don’t you know, taxing our Chinese billionaire communist immigrants is considered racist.

#105 robert james on 01.26.17 at 12:50 pm

Time to call a spade a spade,, Trump is a f**king idiot.. The Mexican president just proved it.. So what does Trump do now..??? LOL http://www.cnn.com/

#106 Jack Scotts on 01.26.17 at 1:04 pm

What about annual MER’s or annual fees charged in the 1% to 2.5%. Take that off any 5%, 6% a year from mutual funds, index funds, ETF’s etc. other type of investments.

Nobody talks about that for the last 17 years. I managed to put my money in rolling over 5 year GIC’s and averaged 4.35% with no fees. Since it was all compounded and in LIRA’s, RRSP’s, RESP’s and TFSA’s my money has gone up 106.23% or 6.25% a year compounding taken into place.

I noticed interest rates on longer term zero coupon bonds are in the 3.5% to 3.8% range and rising. I might have to do that when rates hit 4%+ in coming weeks or months to replicate the past.

MERs on index funds average just 0.25%. Mutual funds are a fee disaster. — Garth

#107 Braj on 01.26.17 at 1:15 pm

#75 Zen Headspace on 01.26.17 at 7:45 am
#40 Andrew Woburn:

“What am I missing? Can any of our American readers help me understand?”
——————————————————————

An American cannot help you understand, because they do not understand themselves. Asking an American to explain themselves is like asking someone to bite their own teeth. One cannot see their own eyes with their own eyes.

Americans have the lowest level of self perception of any nationality on the planet. In other words, their perception of themselves bears no correlation to reality. They are victims of a culture of delusion, falsehoods, and fantasies, propagated by their supreme deity: the almighty media.

Why do Americans believe that “illegal immigrants” are the bane of their existence? Well, for starters, America is the single most systemically racist nation on the planet.
It’s in their blood. They hate because they just do.

Although they have created a fake written credo of “equality” and a “melting pot society”, the chasm that exists between the different races and socioeconomic classes in their country is astoundingly monumental.

FACT: It is a country that established itself by means of slavery.

Free labour built and enriched America. The foundations of today’s economy and capital base could not have been constructed had not the capitalists of 200 years ago used the lives and sweat and toil of innumerable kidnapped African men and women to create their own wealth.

Americans still rely on illegal labour to thrive. At the same time, they hate foreigners and especially those that do not have white skin. They would enslave them and work them to death still today, if not for having to contend with the wrath of the world (i.e., economic sanctions).

In a way, though, they still do. It’s called low minimum wage, underpaid illegal immigrant labour, and mass incarceration of black people for the purpose of supporting the private penal system facility business.

Americans do not see themselves in this way. it takes someone on the outside looking in to really explain what America is.

Well said.

#108 Jack Scotts on 01.26.17 at 1:21 pm

That 0.25% annual index fee in just in recent year not over 17 years. Nice try!

ETFs were not widely available then. Besides, who cares about 17 years ago? It’s 17 years from now that matters. — Garth

#109 Tater on 01.26.17 at 1:26 pm

#102 – what a prediction, Dow averaging 2.25% to 3.4% for 10-15 years.

#110 Metaxa on 01.26.17 at 1:28 pm

MERs on index funds average just 0.25%. Mutual funds are a fee disaster. — Garth

Depends on how you buy them and who does the buy doesn’t it?

I’m a single digit guy, more than one, less than ten invested and I have some Russel and some Mawer and none of the three funds have a MER over 2%

I’m pretty sure my Mawer Small Cap is .7% and it is returning double digits consistently.

Class S seems to rattle around in my brain…if you come in with sufficient purchase and via the private banking side of investment you get a far different MER than the bank sold ones. Is my assumption anyway….all I really know is I do not pay huge MER on the few mutuals I own and they are performing very well of late.

#111 Kevin's Fanzone on 01.26.17 at 1:38 pm

#105 robert james on 01.26.17 at 12:50 pm
Time to call a spade a spade,, Trump is a f**king idiot.. The Mexican president just proved it.. So what does Trump do now..??? LOL http://www.cnn.com/
__

In what world is preventing millions of illegal aliens out of the USA idiotic? In what world is deporting said aliens back to Mexico idiotic?

#112 For those about to flop... on 01.26.17 at 1:48 pm

Hey Sheldon,let’s not worry about what you can’t control.

I remember the other day you talking about thinking about buying a house, but were unsure whether the house had a good price on it.

I don’t think now is the right time to buy ,but if you give me the address I will give you an impartial assessment on the price…

M42BC

#113 Smoking Man on 01.26.17 at 1:49 pm

#91 traderJim on 01.26.17 at 11:13 am
#80 Johnny Boy
“That doesn’t give you the right to deny any sense they might make. Nor does it give you a right to accuse someone of poorly expressing their beliefs just because you don’t like what they are saying.”

I have a right to do whatever I like, so long as I don’t harm anyone.

I can deny, accuse and judge to my heart’s content, sorry if that offends you or this Ashly moron.

Even legislation can’t make me think what you want me to think, although ‘progressives’ sure like to believe it.

Or more likely they just want to silence anyone who disagrees. Witness the constant lefty protests on campuses to prevent talks by anyone they disagree with.

Re: Voter fraud. You people who still don’t get Trump are so slow. Several people on this blog have explained it to you over and over again.

Trump’s new round of tweets about voter fraud have exactly the same intention as his first round: To get the media talking about voter fraud 24/7, so that he can then get legislation passed to have voter ID’s mandatory.

Gawd, can you not think one step ahead, even when people explain what the next step is?
…………………………….
Johnny Boy doesn’t get it. If you read the art of the deal, you know exactly how Trump thinks.

Johnny Boys Heart is filled with hate while accusing others of that.

He’s funny.

#114 numazwumbas on 01.26.17 at 2:43 pm

Anyway, I asked my fancy portfolio manager partner, Ryan Lewenza, for his technical analysis take on the day’s big event.”

Garth best inform Ryan that the bigger the base number the lower percentage return…..here let me spell it out for yas

2000/5000 = 40%
2000/100000 = 2%

#115 Smoking Man on 01.26.17 at 2:43 pm

#105 robert james on 01.26.17 at 12:50 pm
Time to call a spade a spade,, Trump is a f**king idiot.. The Mexican president just proved it.. So what does Trump do now..??? LOL http://www.cnn.com/

Make the wall ten feet higher

#116 numazwumbas on 01.26.17 at 2:50 pm

Garth, how much did you make on the WorkdayTV.com deal?

#117 Self Directed on 01.26.17 at 2:51 pm

#97 For those about to flop… on 01.26.17 at 12:02 pm

Pink Snow falling in Surrey.

These guys bought in at $775k at the peak of the market early last year.

Just trying to get the bulk of their money back.

This post is for you Selfie…

M42BC

2745 Cranley Dr Surrey

Dec 29:$1,188,000
Jan 25: $799,000
Change: – 389000.00 -33%

https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDA3NlhEVA==
………………………………………………………………
Yeah they are hooped. This would never sell over a million. They adjusted the price quickly.

This house is right beside Highway 99. I would hate to hear Harley’s (sorry Garth) with straight pipes, and Gangbanger mufflers all day and night.

Not an experienced home owner to use Tuck Tape on the light on the garage. LOL! That stuff is the worst. Good luck getting the glue residue off the vinyl siding.

#118 Lost in Oakville on 01.26.17 at 3:00 pm

GTA prices are overrated but I just don’t see them coming down anytime soon. We currently own a 1.5 bdrm condo in Oakville (Glen Abbey area) purchased in 2012 for 240k and have been trying to purchase a 2 or 3 bdrm townhouse in the same area for the past year…2bdrm townhouse a measly 1,099 sqft listed for $414k sold for $476k and had 11 offers!!! another 3bdrm townhome listed for 459k we put in an offer of 485k it eventually sold for 520k. Our agent is steering us to Burlington but even the prices there are ridiculous.

#119 jess on 01.26.17 at 3:01 pm

The Art of Being Right
http://changingminds.org/techniques/general/art_of_being_right/art_of_being_right.htm
number 38. Schopenhauer’s stratagems
A last trick is to become personal, insulting and rude as soon as you perceive that your opponent has the upper hand. In becoming personal you leave the subject altogether, and turn your attack on the person by remarks of an offensive and spiteful character. This is a very popular trick, because everyone is able to carry it into effect.

==========================
https://www.propublica.org/article/2016-election-lawsuit-tracker-new-election-laws-suits-challenging-them

#120 For those about to flop... on 01.26.17 at 3:07 pm

I will put this one up because of its comedic value.

The address is Leg In Boot Square.

They tried to get twice the assessed value but still whoever pays this much for it deserves Boot In Ass…

M42BC

728-666 Leg In Boot Square, Vancouver

Oct 8:$1,798,000
Jan 25: $1,499,750
Change: – 298250.00 -17%
https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMFZDWA==

#121 conan on 01.26.17 at 3:37 pm

America was born from an extremely violent past. They will not teach their true history in school. They slaughtered the Indians and subjected them to inhumane treatment.

They invented the lynch mob. They have a preoccupation with fire arms, and believe that problems can be quickly solved using force. They have a distrust of government, and will never give up their right to bear arms.

They sooner they revisit their past, the sooner they can heal their Nation.

#122 Old gringo on 01.26.17 at 3:48 pm

Trump just placed a 20% tariff on Mexican products
and will also on Canada next.
This guy is insane!!!

#123 paul on 01.26.17 at 4:14 pm

#105 robert james on 01.26.17 at 12:50 pm

Time to call a spade a spade,, Trump is a f**king idiot.. The Mexican president just proved it.. So what does Trump do now..??? LOL http://www.cnn.com/

What did he do?

#124 The Technical Analyst, CSTA, CPD on 01.26.17 at 5:02 pm

I like Ryan Lewenza.

And here I thought you didn’t like Technicals.

BTW – Ryan should look into what has happened with QE and interest rates around the world since, oh, August and overlay that with each countries stock index.

I could tell you in a nice technical chart, but that would take all the fun out of it for Ryan Lewenza.

#125 The Technical Analyst, CSTA, CPD on 01.26.17 at 5:04 pm

“MERs on index funds average just 0.25%. Mutual funds are a fee disaster. — Garth”

Not all, in fact, if you get a O-Class or F-Class Mutual Funds you are looking at 0.30% (and lower), plus it’s tax deductible and ACTIVELY managed.

Just ask an advisor for them if you have the cash.

#126 Victor V on 01.26.17 at 5:10 pm

Canada’s biggest bank warns of possible cooling measures coming to Toronto housing market

http://www.financialpost.com/m/wp/news/blog.html?b=business.financialpost.com/news/property-post/canadas-biggest-bank-warns-of-possible-cooling-measures-coming-to-toronto-housing-market&pubdate=2017-01-26

#127 pete on 01.26.17 at 5:55 pm

Trump just placed a 20% tariff on Mexican products
and will also on Canada next.
This guy is insane!!!

Trump will do no such thing to the brother hood. Canada , US , Britain have one thing in common…. that’s why it will never happen

#128 pete on 01.26.17 at 6:14 pm

T2 You better lock down our boarder from any and all illegal Mexicans trying to flee to Canada. T2 has acted like a right wing CONservative for far to long. Yes! T2 has been nothing but a CONservative and you CONservatives have been crying like whinny little CONs. I hate CONs more then anything but I love Trump who is more a NDP/Liberal then a dirty evil CON. The guy at least does what he says and does it in a week. end of rant. GO TRMP GO.

#129 Self Directed on 01.26.17 at 6:19 pm

#118 Lost in Oakville on 01.26.17 at 3:00 pm

GTA prices are overrated but I just don’t see them coming down anytime soon. We currently own a 1.5 bdrm condo in Oakville (Glen Abbey area) purchased in 2012 for 240k and have been trying to purchase a 2 or 3 bdrm townhouse in the same area for the past year…2bdrm townhouse a measly 1,099 sqft listed for $414k sold for $476k and had 11 offers!!! another 3bdrm townhome listed for 459k we put in an offer of 485k it eventually sold for 520k. Our agent is steering us to Burlington but even the prices there are ridiculous.
……………………………………………………………..
How long have you been reading this blog. Consider yourself lucky that you ‘lost’ those bids. Why not just wait… a couple years goes by fast! Never spend half a million for shared walls. Plus, never buy a place without subjects. RE does NOT ALWAYS go up.

#130 Self Directed on 01.26.17 at 6:25 pm

#120 For those about to flop… on 01.26.17 at 3:07 pm

I will put this one up because of its comedic value.

The address is Leg In Boot Square.

They tried to get twice the assessed value but still whoever pays this much for it deserves Boot In Ass…

M42BC

728-666 Leg In Boot Square, Vancouver

Oct 8:$1,798,000
Jan 25: $1,499,750
Change: – 298250.00 -17%
https://evaluebc.bcassessment.ca/Property.aspx?_oa=QTAwMDAwMFZDWA==
………………………………………………………………
Check out the listing http://fw.to/cqOQzal
It’s mostly pictures of the view… the inside is fugly and dark. Better hope the Opens and showings are on sunny days because the view is the only redeeming quality.

Flop, keep an eye on this one… the next price adjustment will be under a million.

#131 jess on 01.26.17 at 6:43 pm

Summary
Executive orders, presidential memoranda, and proclamations are used extensively by Presidents
to achieve policy goals, set uniform standards for managing the executive branch, or outline a
policy view intended to influence the behavior of private citizens. The U.S. Constitution does not
define these presidential instruments and does not explicitly vest the President with the authority
to issue them. Nonetheless, such orders are accepted as an inherent aspect of presidential power.
Moreover, if they are based on appropriate authority, they have the force and effect of law. This
report discusses the nature of these written instruments, executive orders in particular, with a
focus on the scope of presidential authority to execute such instruments, as well as judicial and
congressional responses to their issuance”
https://fas.org/sgp/crs/misc/RS20846.pdf

“Presidential Signing Statements”
The unitary executive theory is a theory of American constitutional law holding that the President possesses the power to control the entire executive branch. The doctrine is rooted in Article Two of the United States Constitution, which vests “the executive power” of the United States in the President.
—————————————————–
2006 Charlie Savage of the Boston Globe
For his revelations that President Bush often used “signing statements” to assert his controversial right to bypass provisions of new laws.
http://www.pulitzer.org/winners/charlie-savage

#132 Lost in Oakville on 01.26.17 at 7:06 pm

#129 Self Directed on 01.26.17 at 6:19 pm

Thank you. I needed to hear that. We have been feeling discouraged by being priced out of the market and fear it will only get harder but your right we would have buyers remorse overpaying for shared walls..we will cool our heels and see what happens…