The love asset

Over 40% of marriages in this strange country end in tears. Half the couples say it was because of money. That’s a little better than in the States, where 57% of relationship implosions are attributed to sour finances. Yikes. Now with debt at fevered levels and so many people stretching to own houses, this ain’t good.

Can’t tell you how many couples I’ve met who would rather share fluids than their bank accounts and investments. The personal relationship with money is stronger than the bond between people who live together, sharing every moment. What a sad world. A Manulife survey this week says shame and embarrassment over money failure is making more people physically and mentally sick.

“The stigma, shame and embarrassment of being financially unwell often prevents people from taking action to address and overcome these issues. We believe that the (personal counselling) industry as a whole has a bigger role to play in helping remove these stigmas. Only once an individual is comfortable discussing their own money problems, can they begin to take steps to address them.”

Is this you? Shamed, stressed and unwell? Then you’ve come to the right place, pilgrim. Marital fulfillment through a balanced & diversified portfolio. Venus and Mars. Fixed income and growth. Capital preservation and octane.  Income and capital gains.

Today something to please people who want less volatility and a stable return, plus their partners who crave wealth accumulation and cheap taxes. What’s not to get all snuggly and smoochy about?

Of course, the love security referred to is preferred shares. Let’s remind you why these puppies have the ability to make everybody happy, with no shame or whimpers of inadequacy. Also recall that two years ago, when prefs were themselves unwanted and rejected by many investors, this blog suggested happiness would lie in loading up. And, voila, here we are.

Preferred shares are a hybrid between stocks and bonds. Like bonds, they produce a regular distribution (but in dividends, not high-taxed interest) which must be paid to investors before common stock dividends – which is why they’re ‘preferred.’ Safer. Like equities, investors still have an ownership stake in the company issuing them, but a less volatile one. And in Canada the pref market is dominated by blue-chip, stable, regulated companies like the banks, utilities and insurers.

Typically people buy preferreds for the great income, which is double or triple that of bonds and less taxed. Technically they’re equities, but usually held in the safe, fixed income (40%) portion of a balanced portfolio. A good weighting is something close to 20% of your overall amount.

The best way to own preferreds is through an ETF, where you can hold a basket of high-qualify assets. An example would be CPD (just an example – this is not a recommendation), which pays investors a dividend yield of 4.3%, which is twice the return of a GIC and it’s still 100% liquid. But there’s more. This exchange-traded fund has increased in value (besides the dividends paid) by 12.7% in 2017 – which far outstrips the 3.8% return of the TSX in general. Since the beginning of last year (when prefs were sooo cheap) the gain in capital value has been 28%. (CPD also went on sale Wednesday after the latest Bank of Canada report. Sweet.)

This big bump over the last couple of years was predictable. Most preferred shares in Canada (unlike the US) are called ‘rate reset’ which means they actually grow in value as interest rates increase. This is the opposite to bonds, which fall in capital value when rates rise even as the interest they pay augments. We all knew that after the Bank of Canada cut rates twice in 2015 during the oil collapse that they’d later be restored. So as preferred prices fell along with interest rates they became a screaming buy. Hope you listened. And there is more to come as central banks keep tightening in 2018.

Finally, lovebirds, think about something really arousing. The dividend tax credit.

Juicy divvies received via preferreds are grossed up on your tax return, then reduced by federal and provincial credits. The logic is simple – the company paying the dividend to you is doing so out of money it already paid tax on. So, it shouldn’t be hosed again at a high rate.  So someone who has to pay a 25% tax rate on their employment income will face only a 7% rate on the dividends they receive. In fact if you had no other income, you could earn $50,000 this way and pay zero tax.

So, there you have it. Assets that hand over 4.3% to own them, have risen in value by double-digits this year, promise further gains and provide you with a honking big tax break – both on the distributions and any capital gain. Preferreds are more stable than stocks, have a safer income stream and do everything but come with chocolates and a bottle of Cointreau.

Hug?

178 comments ↓

#1 dakkie on 10.25.17 at 5:41 pm

Real Estate Will CRASH as Almost Half of Canadians Admit They CANNOT Afford Basic Expenses!

http://investmentwatchblog.com/real-estate-will-crash-as-almost-half-of-canadians-admit-they-cannot-afford-basic-expenses/

#2 Chico on 10.25.17 at 5:57 pm

You talk all the time about financial illiteracy in this country, which I agree. If you ask 100 people, who taught them how to build a good marriage, which I have done, about 15% will mention their parents, 50% will laugh at the absurdity of the question, and the remaining 35% will just shrug their shoulders and give a blank stare.

So if the vast majority of people are both financially untrained and untrained in the intricacies of marriage, why put much stock in their responses for getting a divorce?

People make marriage decisions the same way they make financial decisions.

If they didn’t know what they were doing when they got married, they often don’t know what they’re doing when they get divorced.
Saying that “we’re splitting cause of financial troubles” may be a code phrase for “I have no idea how to make this thing work, and I’m not sure my spouse does either.”

People follow the herd and the herd says “most people split because of finances.”

The guy, the girl thinks…I don’t want to admit that I’m a crappy spouse, that I just jumped at the first guy/gal that came along, I’ll just say the safe thing, and blame money.

#3 crowdedelevatorfartz on 10.25.17 at 5:58 pm

Don’t hug me too hard.

#4 sunshine on 10.25.17 at 5:59 pm

Helpful information- One question on a preferred ETF, should you ideally hold in non-registered account or a RRSP (my TFSA is maxed)? thanks

#5 Loonie Doctor on 10.25.17 at 6:02 pm

I have followed your balanced portfolio advice for several years, including the preferred shares advice. Expanded that proportion with your advice last year when they went on sale. This is simply the obligatory suck up with no further comment or question. Thanks!

#6 MF on 10.25.17 at 6:02 pm

Umm..

Did I inspire a whole post on preferred shares with my bimonthly mandatory complaint about CPD earlier?

Well, I will say that me and CPD are getting along a lot better now and we are in the green (up about 4%). We just had a bad fight today.

In any case, the message is welcome. Thanks Garth.

MF

#7 Baby It's Cold Outside on 10.25.17 at 6:08 pm

Money is fun and so is my spouse . . .we have lots of money and lots of fun – and get this, we rent!

Forget owning – when you can live for a fraction of the cost with no hassles and a heck of a lot of power, renting my friends is the way to go!

Yaaahoooo!

#8 Frank on 10.25.17 at 6:13 pm

The big returns on CPD are year to date. http://performance.morningstar.com/funds/etf/total-returns.action?t=CPD&region=CAN&culture=en_US

10 year returns are 2.5% per year after inflation and taxes. Cash, bonds, preferred shares or similar etfs over 10 plus years lose money after inflation, taxes, and advisor fees.

Private equity, common stock, and real estate when it gets cheap provides real return. Stock is bought because it provides returns. A 15 year holding of Alaska Airlines has provided 20% per year, and its still low cost. Learn discount cash flow to value all three types of assets.

You buy preferreds for a consstent, tax-efficient yield. Rising values along with rising rates are a bonus. Comparing a pref ETF to an airline stock is just silly. — Garth

#9 Jungle on 10.25.17 at 6:14 pm

One thing I don’t agree with (but that’s OK) – you don’t need preferred bonds if you have a balanced portfolio.

1- year CAGR of CPD is unflattering, 2.53% (morningstar)

Stick with us, cdn, int and bond efts

#10 Drew on 10.25.17 at 6:15 pm

Not to mention starting a hundred thousand dollerydoos in debt for the ‘dream wedding’. Also complicated by getting married older and bringing assets to the relationship. It was easier when you married Betsy from the local church group at 20 and your parents picked up the bill.

That said, ETFs are sexy. My wife and I check ours regularly and get all steamed up with the steady increase in value…and that isn’t even mentioning the distributions…

#11 Josh in Calgary on 10.25.17 at 6:16 pm

Garth,
What’s the down side to preferreds? I own them in my portfolio, but I’d like to know what risks there are.

Or another way to look at it, why not own 100% preferreds?

Interest rate risk is the main one. But we’re on the right side of that. However, never hold one asset in a portfolio. No diversification. No balance. — Garth

#12 MF on 10.25.17 at 6:18 pm

#220 Stone on 10.25.17 at 3:53 pm

“Have you heard of the game called darts? I hear it’s real popular at the BoC lately. LOL”

-Ahh darts! That takes much more effort than I assumed, which was they just gathered around and flipped a coin.

#215 Ian on 10.25.17 at 3:18 pm

“Here’s another question: how do we go from 4.5% GDP growth in Q2 to 1.8% projected by the BoC in Q3? And then 2.5% in Q4? That is beyond words”

-Exactly!!

Best economy in the developed world for Q2! Guaranteed rate increases, lots of grandstanding/chest pounding. Lots of “hawkish signals” with economists and news articles telling everyone to prepare for a brave new world of higher rates over the horizon…and then poof…..Q3 is limp wristed, sulky, fearful of it’s own shadow and “cautious”.

Makes no sense.

MF

#13 Ian on 10.25.17 at 6:20 pm

Something is not making sense about CPD today.

It’s been known for weeks BoC wouldn’t raise today. And it’s not like they ruled out future rate rises. And the US Fed likely will mean they have to anyway.

So why so bearish today?

#14 Royal City Dweller on 10.25.17 at 6:22 pm

#5 Loonie Doctor on 10.25.17 at 6:02 pm

I have followed your balanced portfolio advice for several years, including the preferred shares advice. Expanded that proportion with your advice last year when they went on sale. This is simply the obligatory suck up with no further comment or question. Thanks!
=============================

Thank you for your testimonial.

Surely, the guy “knows his sh*t”, to use millennial phrase,
plus he is so entertaining. In this blog that is.
When you’re face-to-face he speaks in such measured tones. Unreal. I this the same guy?

Anyway – this all why I am signing up and soon.
(Gotta look after my marriage).

#15 conan on 10.25.17 at 6:24 pm

Feel the love!

https://youtu.be/MfYcKNqQoJo?t=325

#16 MF on 10.25.17 at 6:28 pm

#2 Chico on 10.25.17 at 5:57 pm

“The guy, the girl thinks…I don’t want to admit that I’m a crappy spouse, that I just jumped at the first guy/gal that came along, I’ll just say the safe thing, and blame money.”

-I agree with that statement. The fear of being alone is strong. People will stay with a sub par mate because of this fear for their whole lives.

Another point: I believe a lot of guys only get married because of pressure from the woman and the two families. If it falls apart later because they (or the woman) were not really into it in the first place. They will then just blame money.

MF

#17 Jungle on 10.25.17 at 6:28 pm

Need to invest in the relationship and don’t be abusive with money against her. Guys have most to lose (spousal support, child payments) because of the system is favoured toward women. So makes sense to invest good in your marriage.

Once you enter common law/ marriage, should be team effort. (not you against them)

Successful people climb the corporate latter, spend/invest so much time at work, sometimes end up with 1-3 divorces. Then she takes half because you choosing work is more important instead of balance.

Be a team player and excellent communicator, (don’t hide things) Set up a budget structure and allowance (agreed and reviewed openly)

Also avoid these 4 things and likely improve chance marriage survives:

Cheating
Gambling
Alchohol
Drugs

Invest in healthy relationship and balanced lifestyle, so you don’t screw your kids over.

/amen.

#18 ole Doberman on 10.25.17 at 6:33 pm

Gartho this is a middle class blog if you really want to get ahead in life you have to learn to trade individual stocks by studying chart patterns. When you have several hundred thousand then you can diversify and balance relax and reap good income. But until then 5% returns are not sexy

#19 crossbordershopper on 10.25.17 at 6:35 pm

4.3% run rate yield, and the stock does go up and down, the last year is not reflective in any way as the future, the previous year was negative the same number, your long run rate is the yield.
yes DTC is a good thing, honestly dividends should be taxed at only like 15% like in the us, but hay this is canada.
there bank , pipelines, insurance companies etc are the bulk fo the issuance.
its just like 4.3% a year, i will be old and stupid when it finally might be worth some money.
at 85 do you really care about anything. i think people shoud go to the usa and dont worry about the dividend tax credit in canada.
man cibc pays 4.6% currently and it has risen its dividend steadily. you can buy a put to protect yourself etc. there are lots of things you can do to almost assure yourself of no capital loss and a 4.3% yield.
honestly, money is to be made, if you have a couple million sure 4.3% is fine, but if you dont, roll the dice.

#20 Damifino on 10.25.17 at 6:37 pm

So someone who has to pay a 25% tax rate on their employment income will face only a 7% rate on the dividends they receive.
————————————-

Wow! Where’s mister ‘Dollar is a Dollar is a Dollar’?

#21 juno on 10.25.17 at 6:39 pm

Its funny how CREA cries about the stress test but they keep on pumping flowers and sunshine to the public.

Many Realestate people are still pumping the idea the foriegners are buying everything up with bag full of cash.

We’ll if that is the case, the stress test wouldn’t matter, if the situation was true , then only foriegners can buy and invade canada financially placing all canadiens on the streets.

Eventually some “trump like politician” will get voted in with “TAX the FF’s (friggen Foreigners) and kick them up

I know so many foreigners whom retired in china and are getting a pension from them, just to come into canada to get social benefits by pretending to stay poor.

Oh yeah they normally take several trips back to their homeland for vacation.

#22 Newcomer on 10.25.17 at 6:40 pm

What would you say to my advisor who says that preferreds are overbought (and hence overpriced) because people are buying them for all the reasons you give, without paying attention to their actual value?

Sounds like he sells mutual funds. – Garth

#23 Frank on 10.25.17 at 6:41 pm

You buy preferreds for a consstent, tax-efficient yield. Rising values along with rising rates are a bonus. Comparing a pref ETF to an airline stock is just silly. — Garth
——————————————————–
Its a curious distinction between yield and gains. You can either commit capital for a fixed return, preferreds or participate in the growth of the company. Companies issue preferreds or bonds because they can invest the cash at much greater rates of return, and hold the benefits for the common shares.

The long run returns of the US market common shares are 6.6% plus inflation. You will never see that on an extended basis with preferreds. Also you will pay tax every year on the yield. With a capital gain on the common you can sell shares if you need cash. Otherwise the amount that would otherwise be paid to CRA is invested for the following year. The total tax paid is much lower with a multi year holding period.

The point about Alaska is that it is a durable business that has grown for years. Equally you could have been invested in Apple for 20 years, or a number of others.

A pointless discussion since a balanced portfolio also holds equities. It is not a contest. – Garth

#24 LivinLarge on 10.25.17 at 6:41 pm

Yesssss Fearless Leader, you have earned your hug with today’s post…well done.

One my favorite investment vehicles…divs, cap gains and th DTC. Money for nothing and the drinks for free.

#25 paracho on 10.25.17 at 6:47 pm

Thank you for a great article..another one !
Glad you explained preferred shares in a direct and simple manner. I have held them for years and have argued dividend income over real estate and/or rental income for year. No tenant problems, guaranteed dividends, preferred shares usually have a call price which guarantees against a total loss( versus lower level common stocks) .
I hold many in my RRSP and TFSA ..some include HSEA, HSEB, WFC.PR.J, WFC.PR.N, NS.PR.A, DLR.PR.H…just to name a few of my US holdings…The Canadian are a fair share of RY issues, , POW and CU…really worth it and the risk is controlled , with diversification of common stock and some bonds ( I am in my 40s..but my bond holdings are lower than Preferred or Common shares) …Some great ETF’s I own are PFF ( US), CPD ( Canadian)

#26 CL on 10.25.17 at 6:47 pm

“#13 Ian on 10.25.17 at 6:20 pm
Something is not making sense about CPD today.

It’s been known for weeks BoC wouldn’t raise today. And it’s not like they ruled out future rate rises. And the US Fed likely will mean they have to anyway.

So why so bearish today?”

It’s called ex-dividend.

#27 John on 10.25.17 at 6:51 pm

DELETED

#28 Disconnected number on 10.25.17 at 6:52 pm

@ #1 dakkie

Your confidence in a Canadian real estate crash is not really supported by economic realities. Local incomes and property values disconnected years ago. Canada is a small country and International incomes will have a more important role in the coming years in keeping home values rising than local incomes. Even US properties are on the rise again.

http://www.scmp.com/property/international/article/2111884/chinese-parents-splash-out-us-properties-pay-childrens

#29 SCM on 10.25.17 at 7:03 pm

Trudeau should tax the sh*t out of these investment vehicles. Welfare bums are just sitting on their a$$es, not doing anything and collecting free money. What a bunch of NEETs.

#30 Yanniel on 10.25.17 at 7:04 pm

I know you are not making any ETFs recommendation Garth, but I am trying to understand the following statement taken from you corporate site:

“The decision to go with DXP was easy,” says Doug, “and it’s now a constituent in all our model portfolios with more than $23 million invested in the product.” (http://www.turnerinvestments.ca/pdfs/17DYN014_DF_Advisor_Summer2017_EN_V1_CoverFeature.pdf)

How is DXP an “easy decision” when CPD and XPF clearly provide a better yield and lower MER?

CPD
————
Yield: 4.33%
MER: 0.51%

XPF
————
Yield: 4.58%
MER: 0.47%

DXP
———–
Yield: 3.89%
MER: 0.58%

#31 AK on 10.25.17 at 7:06 pm

“(CPD also went on sale Wednesday after the latest Bank of Canada report. Sweet.)”
——————————————————————–
10/25/2017 is also the Ex-Dividend Date for CPD, which accounts for some of the fall.

#32 Sam the Sham on 10.25.17 at 7:07 pm

“Over 40% of marriages in this strange country end in tears”

There was a time when in the marriage vow the woman promised to “love, honor and OBEY” her husband. If we could go back to these standards things would be far better in this country with fewer divorces.

#33 Sue on 10.25.17 at 7:16 pm

The silence is deafening! I think freedom first is in love, or worse, engaged! He would be all over this post.

#34 Stone on 10.25.17 at 7:18 pm

Wow! I think after this post, every other blog post will be a letdown. You made prefs sexy and sensual. I feel the need to smoke a cigarette. LOL.

Yup, I love the prefs in my balanced and diversified portfolio. Today, the YTD return was 8.29%. A smidge of a drop from yesterday’s 8.31% but that’s all good. Love that stability. More stability there than most people’s marriages.

By the way, Garth, did you want to talk afterwards or just enjoy the nicotine rush? LMAO!

#35 Michael King on 10.25.17 at 7:19 pm

This morning I read this item and could only come to one conclusion: we’re f**ked. The level of debt carried by Canadians is terrifying. The growth in loans secured by residential property over the last two years is of particular concern. How do people sleep?

http://www.zerohedge.com/news/2017-10-24/4-10-canadians-can-not-cover-basic-expenses-without-going-deeper-debt

#36 Nonplused on 10.25.17 at 7:22 pm

The thing about marriage that is so hard to understand when looked at analytically is that an amazing 50% of them do not end in divorce.

I’ve been married twice but only divorced once and I am not sure I can explain what went wrong the first time or what is (so far anyway) going right the second time. But if I were to try and boil it down to one thing I would say expectations. If expectations change or maybe they didn’t even change but they aren’t being realized then all kinds of resentment builds up. I’ve seen this in many failed relationships not just my own. And I don’t know if preferred shares would have help.

I can’t blame my divorce on finances. Certainly I have more money now but back then I was doing ok and there wasn’t any reason to suspect we were headed to the poor house. We had a house, 2 cars, good employment prospects, 2 kids, and my wife was able to take time off work to study and raise kids. But something changed as she got her Master’s. All that time thinking about social issues and women’s rights changed her expectation of what she wanted and expected in a husband, and I wasn’t up to the billing. Sadly, nobody else was either, my ex-wife remains single.

My second wife seems a lot less rigid with her expectations, which is good because if she plans to hang with me she can’t set the bar very high. She’s more interested in watching a movie for shits and giggles than writing a paper on Jungian stereotypes that suppress women in modern media. My second wife is sort of girl who can back up a camping trailer and ride a motorbike, whereas my fist wife detested the thought of owning a trailer and wanted to vacation in Hawaii. Not that there is anything wrong with Hawaii, I have friends who go there, but if your idea of relaxing is a campfire by a stream and your partner thinks of gala dining on the beach there will be problems.

Too often we base our happiness on what we expect from other people and not ourselves. Tragic mistake. My ex-wife wanted vacations in Hawaii but made no effort to pay for them except complain about what I spent on beer after my soccer game and how late I got home. That the soccer was keeping me fit and ripped didn’t matter. I was to stay fit and ripped another way, drink less beer, and be home earlier.

So then I thought, “maybe I just made a bad choice here, although I don’t know what I would have gone on to make a different choice.” That’s when it hit me that my ex-wife was not the problem, because my sister was doing the same thing and is now on her third husband as she attempts to get someone else to live up to her expectations! I was dumbfounded when I realized that, because I thought my family was hard working and self supporting. They all vote conservative! Then I noticed my other sister does a lot of complaining about her husband too, although she does work. Sure, he isn’t a pillar of industry, but he gets up every morning and drives the van and takes home his pay. But it’s not enough pay you see.

So in the end of the day I decided that all of this was horrible and I wasn’t going to say too much if my current wife gained a few pounds or got drunk at the company Christmas party. It was her company after all and she is working. Everyone else was drunk too, drunker than me and I drink like Smoking Man.

So, in the end I think I have discovered the secret to a successful marriage. Check your expectations at the door, and hang with someone who wants to hang with you. It doesn’t matter whether you are on a beach in Hawaii or a campground in Peter Lougheed Provincial Park, what matters is that she’s happy and you know you couldn’t be happier.

#37 Stone on 10.25.17 at 7:22 pm

#12 MF on 10.25.17 at 6:18 pm
#220 Stone on 10.25.17 at 3:53 pm

“Have you heard of the game called darts? I hear it’s real popular at the BoC lately. LOL”

-Ahh darts! That takes much more effort than I assumed, which was they just gathered around and flipped a coin.

#215 Ian on 10.25.17 at 3:18 pm

“Here’s another question: how do we go from 4.5% GDP growth in Q2 to 1.8% projected by the BoC in Q3? And then 2.5% in Q4? That is beyond words”

-Exactly!!

Best economy in the developed world for Q2! Guaranteed rate increases, lots of grandstanding/chest pounding. Lots of “hawkish signals” with economists and news articles telling everyone to prepare for a brave new world of higher rates over the horizon…and then poof…..Q3 is limp wristed, sulky, fearful of it’s own shadow and “cautious”.

Makes no sense.

MF

——

I never said they could aim though. LOL.

#38 Ian on 10.25.17 at 7:30 pm

#23 CL

Oh, I think it’s more than that. Graph looks very bearish now.

#39 Deplorable Dude on 10.25.17 at 7:31 pm

Yep..loving my ZPR….my 2015 purchase is just about back to book value….and later purchases are up 17%…all the while giving me lovely divs..

In other news….hey…turns out Hilary was the one colluding with the Russians…to try get some dirt on Trump…with a made up dossier…but thats not the half of it…

The really juicy news?….looks like the FBI/Clinton/Obama used that entirely fake unsubstantiated dossier to get FISA warrants to wiretap Trump Tower..i.e. Spy on a Presidential candidate via his team.

Not too mention using this garbage dossier as the rationale for Special Council Mueller…

This is Watergate x 100…

#40 Sector weighting on 10.25.17 at 7:33 pm

Personally , I’d never hold such as an etf . As I would go with small cap exposure . Way too many good managers in this sector . ESPECIALLy during the downside – just have a look at the available etfs and their performance Historically

Mer is not the only factor to look at . Unfortunately , marketing is brilliant at Convincing the massss otherwise

Most ETFs are not actively managed. That’s why they’re cheap. — Garth

#41 love the divs on 10.25.17 at 7:38 pm

i remember when ZPR was 8.5 … early 16 .. but i already had my 20 % …. i really really wanted to buy some …. knowing it was at a low … BUT … i was trying to be a smart investor and stay within my weightings , rather than gamble ( however i knew it would be a good buy ) .. sigh .. still i have done very well indeed ..

#42 Nonplused on 10.25.17 at 7:39 pm

One more final thought on making marriage work, most people won’t probably think it helps and will assume I am crazy.

On thing that bothers me about my wife, is she’s a pack rat. It’s her job to pack the camping trailer with clothes and food at the beginning of the season, I have the job of unpacking it when I winterize it. Holy crap does she pack a lot of stuff! It’s like she’s expecting to survive the coming nuclear winter in there! But then one day I realized that she’s only packing what fits in the cupboards, which is a factor of the trailer I chose to buy, and we are going camping and she’s happy. Cliff jumping for the boy was the big event this year. Sure, I have to pack about 400 lbs worth of extra stuff out of there at the end of the season, but we went camping and there was never any worry we wouldn’t have something to eat.

See your wife or husband for the good that they do, and not the mistakes that they make. You’ll be happier. Actually it might not be a bad way to treat all people. Including yourself, although that is hard. Garth still goes on about his time in politics, and you can sense the perceived failure in his language. But Garth or Moroneau for finance minister?

#43 conan on 10.25.17 at 7:39 pm

Sounds like he sells mutual funds. – Garth

Oh oh, here comes Darth!

https://i.imgur.com/ERTeq9i.png

#44 Ronaldo on 10.25.17 at 7:39 pm

Over 40% of marriages in this strange country end in tears. Half the couples say it was because of money. That’s a little better than in the States, where 57% of relationship implosions are attributed to sour finances. Yikes.
—————————————————————-
Why you don’t want to lock into a long term mortgage. Odds it seems you won’t be in the place for the term of it. Marriage is a very risky situation. Probably worse than investing in the markets right now. In the olden days, people weren’t expected to stay in one place more than 3 to 4 years. Sure was the case for me anyway. 15 moves to date. Owned 9 homes, two of which I built myself and one complete reno. A couple more moves to go before I call it a day. I never was concerned about paying off the mortgage for obvious reasons. Never had a CMHC insured mortgage. Never could see the sense in tying up all your cash in one asset when you could invest the bulk of it and be diversified. I had to borrow the down payment for my first home though because I was so far in debt with my 65 Pontiac and only had $500 bucks to my name. That was one of my worst decisions in life. Luckily I had a good job and my wife worked as well but there was never any money left after the groceries and rent until that thing was paid off. And people think the boomers had it so great. LOL

#45 Stone on 10.25.17 at 7:40 pm

#25 SCM on 10.25.17 at 7:03 pm
Trudeau should tax the sh*t out of these investment vehicles. Welfare bums are just sitting on their a$$es, not doing anything and collecting free money. What a bunch of NEETs.

——

Really?

Well, I take satisfaction knowing that you can’t save a penny to save your a$$. Anyone who can would never think that way. You poor, poor wretch.

On a more pertinent and important subject, were you a good little consumer and consume something today? My dividends are hungry and need to be fed. Did you pay tax on your purchase to feed the gouvernments coffers as well. Yes? Good then. Stop the whinning and invest, you fool. Stop being a hypocrite. One day you will be old, alone, and most important, POOR if you continue with your current deranged mindset.

Then again, maybe you already are. Medication is meant to be taken and not to look pretty on a shelf.

#46 Cow Man on 10.25.17 at 7:41 pm

DELETED

#47 Grantmi on 10.25.17 at 7:41 pm

Is it just me… or is every second commercial on CKNW ..BC’s biggest TAlk RADIO STATION, About bankruptcy restructuring or divorce lawyer solicitation? Just saying!

#48 Lolo on 10.25.17 at 7:41 pm

We keep our finances separate for the most part (we have one shared account, and I also contribute to his spousal RRSP) because we have different risk tolerances, and different outlooks on investing. I showed him that my money with my advisor (who charged 1%) over a 1 year period out-performed the money he left in a what is basically a mutual fund charging 2+%). He left it there anyways. I was able to convince him to move some of his money out of a HISA to a managed account with my advisor. YTD gains were over 10%, way more than he would have gotten in the HISA, and more than his fund. I beat my head against the wall trying to get him to move his money, but in the end, it’s less friction for me to decide how my portfolio is handled, and let him handle his own. I contribute to his spousal RRSP into an account managed by my advisor, so at least there is more growth there.

#49 love the divs on 10.25.17 at 7:43 pm

never hold one asset in a portfolio. No diversification. No balance. — Garth

ha ha .. what is the percentage of people holding one asset in Canada ???… indebted Real Estate junkies ..

#50 crowdedelevatorfartz on 10.25.17 at 7:45 pm

@#29 SCM

The wailing from the wilderness of a money deprived Millenial seems to be getting more desperate..
Shall we Boomers scrape our ETF scraps on the floor for you? Or just toss them into another investment account? Kind of a Boomer version of “recycling”….. Decisions, decisions
Or will you slink off to Socialist, Bankrupt Italy as a proud Temporary Foriegn Worker unwilling to accept charity from the rich……

#51 Trevor on 10.25.17 at 7:50 pm

Garth,

Thanks for the advice on the preferreds!!, I have been reading for years and only posted the odd comment. One question though, we have now entered into the 2nd longest bull market in history while 80% of investors hold ETF’s. During a market down turn, albeit the timing of which is impossible to predict, is inevitable, do you recommend having stop limits set with an ETF portfolio and if so, what percentage would you recommend? The theory being that both good and bad companies will drop in an ETF during a market sell-off. This sell off will be fueled by the absurd amounts of debt carried by individuals, rising interest rates, margin calls, and all the other things you pointed out. Thanks.

Canadians hold $1.43 trillion in mutual funds and only $135 billion in ETFs. Now you know what to worry about. — Garth

#52 Nonplused on 10.25.17 at 7:50 pm

PS thanks Garth for the TFSA. Sure, blogging got you killed, but not before you did a great service to all Canadians! And I notice that you can’t stop blogging anyway. We all have our Achilles heal.

#53 Ronaldo on 10.25.17 at 7:52 pm

#29 SCM on 10.25.17 at 7:03 pm

Trudeau should tax the sh*t out of these investment vehicles. Welfare bums are just sitting on their a$$es, not doing anything and collecting free money. What a bunch of NEETs.
————————————————————
You make no sense whatsoever. Your not even a good troll. You give trolls a bad name.

#54 Mathes on 10.25.17 at 7:59 pm

Your first two sentences make no sense. First you say that 40% of Canadian marriages end in “tears” by which I assume you mean divorce. This is false. What is your source? Then you conflate this with a U.S. statistic that identifies the CAUSE of marriage implosions, not the percentage of implosions.

Read this. — Garth

#55 acdel on 10.25.17 at 7:59 pm

#36 Nonplused

That is probably the best marriage advice feedback I have ever read; I know, I’ve been there and could not have said it better myself! Hopefully your response will save at least one marriage out there. Good on you!

#56 Lost....but not leased on 10.25.17 at 8:00 pm

What’s an ETF?

Erotic Tickler with Feathers?
….that should save most marriages east of the Rockies.

#57 For those about to flop... on 10.25.17 at 8:01 pm

Howmuch decided to do another article on the Orange Octopus and his tax plan…

M43BC

“Trump’s “YUGE” Tax Cut for the Rich

The basic idea behind President Trump’s tax plan is to lower income tax rates while closing loopholes. This makes the tax system fairer because it would remove tax incentives for specific activities, like owning a home or making contributions to retirement accounts. But Trump’s plan represents a net reduction in tax collections. So who is getting that money? We created a new viz to help you understand.”

https://howmuch.net/articles/trump-tax-savings-per-filer

#58 Yanniel on 10.25.17 at 8:02 pm

“Most ETFs are not actively managed. That’s why they’re cheap.” — Garth

More to the point. DXP is managed.

Statement stands. — Garth

#59 Post on 10.25.17 at 8:07 pm

Both Larry Fink from Blackrock and Howard Marks both believe that the financial markets will return poor returns over the next 10 years – no more than 4% annualized.

https://www.cnbc.com/2017/10/25/howard-marks-stock-bond-markets-not-likely-to-deliver-great-returns.html

That’s US securities only, with bonds (not preferreds). You should have a global portfolio. — Garth

#60 Rapier Wit on 10.25.17 at 8:08 pm

Hug indeed! Thank you!!

#61 Bitcoinnaire on 10.25.17 at 8:16 pm

Garth, your balanced and diversified strategy doesn’t grow appreciably to give someone fulfillment, at best, it will provide a little bit of income.

What you forget to mention is that you need to populate your accounts with a few hundred thousand dollars to see some of that “balanced and diversified” capital preservation.

And that’s a hurdle that most people struggle with.

Of course, Bitcoin and derivative crypto markets offer daily opportunities to double one’s money..

And lose half. — Garth

#62 the Jaguar on 10.25.17 at 8:16 pm

Wonder if the new OSFI rules being introduced in January 2018 will take into account couples who are d-i-v-o-r-c-e-ing where one of them wants to take over the mortgage in their own name? That tricky old release of covenant thing.
Does the stress test apply to an existing mortgage?
40% marital split statistic is unfortunate, but it doesn’t really reflect the total number of less than happy marriages. Stateside or in Canada. Many stay together because the financial costs would be too great to part ways. Or for issues regarding children. Or community image. What a bleak picture that paints. Imprisonment takes many forms. But some birds ( and Jaguars, too) just can’t be kept in a cage.

#63 Chico on 10.25.17 at 8:17 pm

#36 Nonplused on 10.25.17 at 7:22 pm

———

Wow…everything except the part about drinking like smoking man, that was just weird. I guess there are people who drink like fish and refrain from getting on the internet and spilling their guts…and whatever else he pounds out on the computer.

#64 Newcomer on 10.25.17 at 8:18 pm

#22 Newcomer on 10.25.17 at 6:40 pm
….

Sounds like he sells mutual funds. – Garth

———–

Nope. Like you guys, he charges a percentage of funds managed and doesn’t have any mutual funds in his portfolios.

Then he needs some educating. Send him over. — Garth

#65 Chico on 10.25.17 at 8:20 pm

#33 Sue on 10.25.17 at 7:16 pm

The silence is deafening! I think freedom first is in love, or worse, engaged! He would be all over this post.

———

I miss his line “I have mastered humility.” It’s one of the best lines I have ever heard!!!!!

#66 Smoking Man on 10.25.17 at 8:22 pm

Scam alert.

Got a Robo call Today from this Number. 1-613 665-0999

Said they were CRA Asked me to call a number ASAP There is an arrest warrant out for me and to call Right away.

Which was funny because this morning I called them up and made a large payment of 5 figures.

I called the number back and it said, not accepting calls please send a text. I just called it again and they hung up.

I’ve reported them to CRA, these people scam artist screwing people out of thousands of dollars.

If CRA ever calls you, tell them you will call them back on the 1800 number from the website and give me your extension. That’s when crooks run.

#67 For those about to flop... on 10.25.17 at 8:24 pm

Couple of guys on here talking about Bank of Canada playing darts.

This is how they do it…

https://m.imgur.com/gallery/YYettH8

#68 CL on 10.25.17 at 8:26 pm

“#38 Ian on 10.25.17 at 7:30 pm
#23 CL

Oh, I think it’s more than that. Graph looks very bearish now.”

yes of course you think that, there are many fortune tellers in the market just like you reading the same “graph”. I mean, prices should just go up every single day in perpetuity, right? and never a down day comes.

#69 akashic record on 10.25.17 at 8:32 pm

I share my high yield preferred for today.
Never disappoint.

https://www.youtube.com/watch?v=ofZiK_G40t0

#70 Dolce Vita on 10.25.17 at 8:35 pm

OR…

You can work Condo developments into derivatives and futures markets as foreign and domestic “investors” are getting away with now:

http://business.financialpost.com/diane-francis/taxpayers-also-victims-of-hot-money-behind-canadas-condo-bubbles

#71 Doug in London on 10.25.17 at 8:37 pm

Q: What sits in a window, hums for 91 days then stops?
A: An air conditioner with a 90 day warranty!

Q: What sits in your portfolio and, unlike the air conditioner, hums along month after month paying out generous dividends?
A: Preferred share ETFs!

I remember 2 years ago, when preferred share ETFs were on sale, a lot of commenters here were bitching and bellyaching about how the price of these investments had dropped, and I took it as a sign it was a good time to buy more of them. Wow, am I ever glad I did so! That was AWESOME, Boxing Week clear out the inventory NOW sales that went on for about 2 years!

#72 Ace Goodheart on 10.25.17 at 8:38 pm

The problem of course with this wonderful idea, is that you would be convincing married couples to not own houses, not drive fancy vehicles, not go on expensive vacations, not buy cottages and not perform renovations on their real estate holdings that they cannot afford.

So you are asking them to give up their ba-bling in exchange for ka-ching.

The wisdom necessary for this occurs mostly in either persons who have actually had to climb up to their present financial position, from abject poverty (ie, not kids buying houses with help from banks of mom and dad), or very wise older folks who have been through at least one recession.

The rest…..good luck. Like trying to convince a grasshopper to be a squirrel.

#73 FLHTK on 10.25.17 at 8:39 pm

#36 Nonplused

well said man! your absolutely right! Long phrase but so worth the read!

#74 Bond Junkie on 10.25.17 at 8:40 pm

SO, about all those hikes in 2018… oops. Dougie P going to be scaling it back a little within the next few days. But none will be the wiser.

-Bj

#75 Smoking Man on 10.25.17 at 8:43 pm

#74 Bond Junkie on 10.25.17 at 8:40 pm
SO, about all those hikes in 2018… oops. Dougie P going to be scaling it back a little within the next few days. But none will be the wiser.

-Bj
….

When are we going for beers?

#76 Trojan House on 10.25.17 at 8:43 pm

As the old saying goes:

“40% of marriages end in divorce. 100% of people think they can beat those odds.”

#77 Lost...but not leased on 10.25.17 at 8:57 pm

Love, Marriage, etc. etc.

What’s the difference between Hugh Hefner and Gloria Steinem?

…..actually not much

Both were intelligence assets whose goals and agendas was to disrupt the family unit..one by porn, the other via feminist movement.

Voila !!!!

FYI when the Nato forces invaded and conquered nations like Iraq, one of their first”destabilization ” tactics is to broadcast porn on TV and in Theatres

#78 akashic record on 10.25.17 at 9:00 pm

An other smoking Nektonite with worst teeth than Smoking Man.

https://www.youtube.com/watch?v=rHH5PBS2H_I

#79 april on 10.25.17 at 9:01 pm

#47 – and pumping real estate.

#80 Hans on 10.25.17 at 9:02 pm

Garth…. please correct me if I’m wrong, but I believe preferred are also one of the first to have divvies cut when a company hits a rough patch because they don’t trigger a default the way secured bondholders can. Preferreds are only secured by the credit rating….but I could be wrong.

That being said, the fact that you’re recommending an ETF approach should eliminate much of that risk by virtue of diversification of holdings.

#81 Wait There on 10.25.17 at 9:05 pm

What up with Bill? Garth was supposed to provide an update. Been waiting.

#82 Deplorable Dude on 10.25.17 at 9:06 pm

#11 Josh in Calgary…”Or another way to look at it, why not own 100% preferreds?”

I’ve been thinking about that as well the closer I get to retirement…has Garth ever espoused on recommended portfolio mix once retired… Still 60/40?

I know Garth harps on about diversification..but Preferred ETF’s are diversifed.. yes its only one asset class, but still multiple companies at the end of the day.

Yes…sensitive to interest rate changes….but that’s not an issue if you are only interested monthly dividends for retirement. The thing to watch would be changes in the dividend rates..

#83 Fred on 10.25.17 at 9:06 pm

it should be noted that the tax break is only applicable for Canadians with enough monies to fund a non-registered account.

um, the Canadian non-registered account is their house….:)

#84 For those about to flop... on 10.25.17 at 9:07 pm

Pink Pumpkins Price Update.

These guys were on then off ,then on ,then off, then on.

Hope they stocked up on fresh undies.

If not turning them inside out will have to suffice…

M43BC

6626 Inverness Street, Vancouver paid 1.67 asking 1.64

May 30:$1,849,800
Jul 27: $1,748,000
Change: – 101800.00 -6%

6626 Inverness Street, Vancouver

May 30:$1,849,800
Oct 24: $1,649,000
Change: – 200800.00 -11%

https://www.zolo.ca/index.php?sarea=6626%20Inverness%20Street,%20Vancouver&filter=1

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

#85 Stone on 10.25.17 at 9:08 pm

#67 For those about to flop… on 10.25.17 at 8:24 pm
Couple of guys on here talking about Bank of Canada playing darts.

This is how they do it…

https://m.imgur.com/gallery/YYettH8

——

That guy definitely doesn’t work at BoC. Amazing. Today’s BoC announcement was not.

#86 Smoking Man on 10.25.17 at 9:17 pm

The primary motivation for people going into crazy debt on mortgages is the Rent vs Buying observation.

Case in point, to get a half decent place minimum rent is 2500, per month, that buys a lot of debt at current mortgage rates.

But with wages going nowhere T2 with his worldly inclusive views of things is flooding the labor IT market that I’m familiar with TFW ensuring that not only will contracting rates not go up but will decline.

Great news for Shareholders like myself of companies like RBC and CIBC. but the grunts on the ground who are cowards and afraid to bet. Who only have one source of Income, their screwed.

But with min wage going up to 15 bones per hour, obviously, the ice cream shop owner will raise the price of sprinkles they will have no choice. It’s called inflation.

What I’m seeing right now on realtor.ca when I look at listings just today.

A shit load of people are screwed. You got one month to unload your property. after that. doomed

Rents are coming down huge at the fringes of the Golden Horseshoe heading for downtown Toronto.

#87 Bond Junkie on 10.25.17 at 9:21 pm

Stoj! Will send you an email tomorrow.

-Bj

#88 Ian on 10.25.17 at 9:21 pm

US 10-year yield at 7 month highs. They know what’s up. Hawk coming in at the Fed!

Bond bull market faces ‘moment of truth’ as 10-year yield crosses 2.40%
http://on.mktw.net/2yLASnx

#89 Victor V on 10.25.17 at 9:22 pm

This mortgage broker offers 4 tips on how to beat the B20 stress test.

https://www.youtube.com/watch?v=CGS2BaByQKs&feature=youtu.be

#90 Smoking Man on 10.25.17 at 9:23 pm

Kids if you keep your money dived your marriage is doomed. You get married you become one. Power.

You go the other way, keep everything separate, you give George Soros a divisive Bonner. Basterd has no balls, he only bets on forex when his destruction planning is welcomed by stupid politicians that he pays off.

T2 and him best buddies.

Renko Charts Bitches.

#91 Leo Trollstoy on 10.25.17 at 9:40 pm

Want money?

It’s call tech. Specifically BIG DATA

https://www.inc.com/quora/the-numbers-are-in-heres-single-highest-paying-field-you-can-go-into-right-now.html

#92 Dollaramanation on 10.25.17 at 9:45 pm

Preferred … pfft..
Dollarama is where it’s at….

#93 Leo Trollstoy on 10.25.17 at 9:47 pm

Inflation still healthy in Canada!

http://www.foxbusiness.com/features/2017/10/20/canada-annual-inflation-rate-climbs-1-6-in-september.html

#94 Smoking Man on 10.25.17 at 9:48 pm

One day you wake up thinking you have the moral bliss, you’re smart, diploma in hand, the end justifies the means.

Hillary is going to jail.

#95 For those about to flop... on 10.25.17 at 9:48 pm

If the trend is your friend,then there is absolutely no need to get into any bidding war on detached houses in East Van at the moment.

Another sale in my hood yesterday continues the trend of spending some time on the market and then going under ask but still for a substantial amount of money.

5445 Sherbrooke st Vancouver

Asking 1.59

Sold 1.5 on October 24th.

The realtors on here have given up helping out The Flop ,but I will always find new ways to try and show real time transactions so you guys can make up your own mind.

I only have half as much brain matter as you guys but I intend on putting it to good use…

M43BC

http://normflockhart.com/listings/sales.aspx

#96 For those about to flop... on 10.25.17 at 9:56 pm

#86 Stone on 10.25.17 at 9:08 pm
#67 For those about to flop… on 10.25.17 at 8:24 pm
Couple of guys on here talking about Bank of Canada playing darts.

This is how they do it…

https://m.imgur.com/gallery/YYettH8

——

That guy definitely doesn’t work at BoC. Amazing. Today’s BoC announcement was not.

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

Stone,you need to watch it again.

They are well camouflaged.

I didn’t see everyone in the footage but I definitely saw Stephen “Pallet “Poloz and Paul “Ricochet” Rochon…

M43BC

#97 Ronaldo on 10.25.17 at 9:56 pm

#76 Trojan House on 10.25.17 at 8:43 pm
As the old saying goes:

“40% of marriages end in divorce. 100% of people think they can beat those odds.”
————————————————————–
And the odds increase along with your net worth. Once it hits 1 million, look out!

#98 bubu on 10.25.17 at 9:56 pm

ups… does it start in AB? This was even before the mortgage rates increases and B=20:

https://globalnews.ca/news/3823550/leins-piling-up-as-reidbuilt-homes-struggles-to-pay-contractors/

#99 Ace Goodheart on 10.25.17 at 9:58 pm

RE: #87

“A shit load of people are screwed. You got one month to unload your property. after that. doomed”

Sometimes the nanny state works for you. Sometimes it works against you.

The housing situation in Ontario anyway is still just a puppet on strings type thing, with the govt holding the strings. We don’t get to experience a true crisis. We get to see what happens, when the govt artificially increases interest rates by 2% (but not really) and makes everyone have to qualify for imaginary mortgages.

And we all shake and worry about this prospect. An imaginary interest rate hike, put into place by a democratically elected government that must get enough votes to get back into power in 2019.

Yet again, the wet fart that is Canadian crisis is a laughable joke to anyone who has actually been through a real financial shock.

All that has to happen, for this big scary crisis to disappear, is for the govt to get rid of their 2% stress test.

Then we are all back to selling houses to each other as our main industry, at vastly inflated prices.

They didn’t even increase interest rates, for cripes sake. What is everyone whining about? Playing make believe, in a nanny state.

#100 Lost...but not leased on 10.25.17 at 10:00 pm

What’s it all about Alfie(cont’d)

Students..have you figured it out yet…..???

“Communism by the back door”

Remember those heart warming news clips(1950’s, 1960’s) of Communist countries, and the unisex uniforms both the male and female citizens wore as they mimiced worker ants and hive bees in feigned exhultation with their glorious leader(sorta like T2?)

Have you seen the exact same rather insidious template being slipped around our collective necks as we speak ?

Whether it be immigration,feminism,… LBGQT,…human rights tribunals…we have the politically correct mantra of ” diversity is our strength” yet the “powers -that- be” agenda seems to blur all existing differences that once actually makes us diverse and distinct groups and/or individuals.

Again…”Communism by the back door”=analogy of your 32 flavours of ice cream will end up one inseparable but identifiable amalgam.

Globalization’s aim is the aforementioned.

Our worst nightmare will be the given (ex)nation and is co-opted citizens in khaki uniforms worshipping T3…….oh the horror…

#101 Ronaldo on 10.25.17 at 10:02 pm

#83 Deplorable Dude

I’ve been thinking about that as well the closer I get to retirement…has Garth ever espoused on recommended portfolio mix once retired… Still 60/40?
————————————————————
I’m 71 and my mix is 63 Fixed 37 Equity and up 5% year to date. My strategy to get an extra boost is to invest up to 15% in sectors that are lagging. This has worked out very well over the years.

#102 Victor V on 10.25.17 at 10:02 pm

#90 Victor V on 10.25.17 at 9:22 pm
This mortgage broker offers 4 tips on how to beat the B20 stress test.

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

To clarify — the mortgage broker and the realtor in this spot make fun of Garth and his blog dogs. Fast forward to this portion of the link: https://www.youtube.com/watch?v=CGS2BaByQKs&feature=youtu.be&t=8m33s

You can tell they are pumping ‘nervously’ …

#103 CalgaryCarGuy on 10.25.17 at 10:14 pm

Although I read this blog every day and have had for years I hardly ever post. A couple of poster’s comments tonight really caught my attention though.
The first one was #16 by MF commenting about people having such a strong fear of being alone. My immediate reaction was that I am the exact opposite of that. Always have been. Relationships have always scared the crap out of me and to this day I still try to figure out exactly why. I will be sixty in about a month. I think I just value independence more than most people. Everybody is different I guess.
Ironically the other two posts that were really great were by Nonplused. #36 and #42. I like to read straight up posts like those. They were written in such a way that they illuminated what a content married life is like. Thanks Nonplused.
Thanks for a great blog Garth.

#104 Nonplused on 10.25.17 at 10:15 pm

#55 acdel

I don’t think anything I say, or anybody else says, can save a marriage. Not even Garth’s advice to buy preferred shares (wink). The only people that can save a marriage are the participants to that marriage. And the first thing they have to do is remove the log from their own eye, to quote a famous philosopher.

#63 Chico

Not sure what part you thought was weird, what I said or that I drink too much. Actually they are probably both weird.

#73 FLHTK

I do endeavor to be brief, but it takes a lot of time! I appreciate that you stuck with my not-very-brief version.

Brevity is an art form and those who can do it well are much more talented than I am.

#105 IHCTD9 on 10.25.17 at 10:18 pm

….I have the job of unpacking it when I winterize it. Holy crap does she pack a lot of stuff! It’s like she’s expecting to survive the coming nuclear winter in there.

——-

Secretly, she is a prepper, and is preparing for a major SHTF event. The camper is her bug out vehicle. Next year, leave all that crap in there.

#106 Chico on 10.25.17 at 10:19 pm

#66 Smoking Man on 10.25.17 at 8:22 pm

Scam alert.

Got a Robo call Today from this Number. 1-613 665-0999

Said they were CRA Asked me to call a number ASAP There is an arrest warrant out for me and to call Right away.

Which was funny because this morning I called them up and made a large payment of 5 figures.

I called the number back and it said, not accepting calls please send a text. I just called it again and they hung up.

I’ve reported them to CRA, these people scam artist screwing people out of thousands of dollars.

If CRA ever calls you, tell them you will call them back on the 1800 number from the website and give me your extension. That’s when crooks run.

————

It’s not a scam smoking dude…CRA is out to get you! They don’t care about the rest of us, just you!

#107 AACI Homedog on 10.25.17 at 10:24 pm

Yeah…I have shared beer with the wife….not the Scotch though…no way…!

#108 Capt. Serious on 10.25.17 at 10:29 pm

#59 Post on 10.25.17 at 8:07 pm
Both Larry Fink from Blackrock and Howard Marks both believe that the financial markets will return poor returns over the next 10 years – no more than 4% annualized.

I would totally agree with this. When valuations are what they are, there is zero story for high returns. You get high returns when things are cheap. Stocks in the USA are not cheap nor out of favour right now. EAFE and emerging are not terrible, but not cheap either.

#109 LivinLarge on 10.25.17 at 11:16 pm

“Scam alert” ya figure? It’s been running 3 years and everyone knows already.

CRA’s first move is NEVER a phone call. Even when I worked there in the early 90s no collection call was their first contact. You had multiple letters before even being assigned a collector.

#110 Lost...but not Leased on 10.25.17 at 11:23 pm

Oh..excuuuuusse me

I thought the latest blog title was “The Love Asses”….a documentary of T2 , Moroneau and their majority caste of mute MP’s.

My sincere apoplexies

#111 PastThePeak on 10.25.17 at 11:34 pm

I would say when the market looks like it might be in the late innings, preferred shares are one of the better investments you can make. There is downside protection because the units have the recall value, and while the resets are likely to lose value as interest rates drop, they are unlikely to lose as much as common shares. You will continue to receive the dividend (absent failing companies), which has a lower probability of being cut vs. a common share.

When you are in your growth years (e.g. don’t need the distributions), the fixed income / dividend and REIT parts of portfolio produce “real cash” which can be re-invested into your equities. They are lower volatility, provide diversification, and help with capital preservation.

Given the limited landscape for preferred shares in Canada, I would not universally say go with an ETF. I hold the individual preferreds myself (but use ETFs or mutual funds elsewhere).

#112 Harold on 10.25.17 at 11:35 pm

SCM, this is for you:

https://www.youtube.com/embed/hLpE1Pa8vvI?autoplay=1&autohide=1&showinfo=0&iv_load_policy=3&rel=0

#113 45north on 10.25.17 at 11:52 pm

Ace Goodheart: The housing situation in Ontario anyway is still just a puppet on strings type thing, with the govt holding the strings.

you’re missing it. OSFI is an independent federal agency which means all of Canada and not just Ontario. It’s independent from political parties but not from the banks.

Just listen to Dave McKay, who happens to be in charge of the Royal Bank: “We need some of this policy change, particularly the B-20 change, as we are in a highly stimulative monetary policy environment. We needed to layer on some type of policy change; now that the Bank of Canada feels more comfortable raising rates, that’s supposed to be the brake on the economy that we all like to see.”

the banks want B-20

Hilliard MacBeth says the change comes when lenders change their view of how much they will lend and to whom. That is now.

http://www.macleans.ca/politics/ottawa/the-truth-about-justin-trudeaus-tax-cuts/

look at the sign in the picture, white letters on a red background – Real Change for the Middle Class. We asked for it. We got it.

#114 morrey on 10.25.17 at 11:57 pm

no one knows the future:
BoC puts rate hikes on hold amid weak inflation, threat of NAFTA collapse

#115 crowdedelevatorfartz on 10.26.17 at 12:27 am

@#96 Floppie
“The realtors on here have given up helping out The Flop….”
++++++
Nah,
Times are tough.
Realtor priorities.
The first thing to cut back is the internet.
The next is the Audi lease.
The last is the smart phone because ya never know when a rube…err client may call.

#116 crowdedelevatorfartz on 10.26.17 at 12:31 am

@#113 Harold

That song was written for SCM !
Well done!

#117 macroman on 10.26.17 at 12:48 am

I vote #36 Nonplussed to be Plussed

#118 Bod Dog on 10.26.17 at 12:54 am

DELETED

#119 Jane24 on 10.26.17 at 2:31 am

My parents had an old Egyptian saying found in some ancient tomb, hanging in their house. It went along the lines of,

” Be not too harsh with thy wife. She is happy to walk with thine hand in hers.”

I always thought it summed life up 2000 years later too. It is the little things in life that make a happy marriage. Celebrating my Ruby next year.

But yes as Garth has commented my husband and I have joint financial everything, my married children keep separate accounts. Must be a generational thing.

#120 Jerry on 10.26.17 at 3:09 am

In Canada and outside the public trough, a very large proportion of investors look upon their portfolio as their key to happy retirement. All of them will have selected some fixed income allocation which, although producing modest returns, dampens volatility.

Preferred shares have far too large a correlation to equities to provide this feature and suggesting 20% (!) is far from prudent.

https://www.cbsnews.com/news/why-you-should-avoid-preferred-stocks/

US perpetual preferreds are not the same as Canadian rate resets, and often of lower quality. The article is not relevant here and shows the danger of DIY investing-by-Google. Get some help. – Garth

#121 Reality 1 on 10.26.17 at 3:35 am

To # 36 Nonplussed

Great post and observations about what makes a great relationship with another person and how to really make it work.

The “foundation” really is expectations and the honest appraisal of what you want and need and what the other person wants and needs and being very open about it. Communication is and always be key.

You absolutely have distilled the issue down to its’ essence and in a humble and forthright manner.

Bravo.

You deserve your happiness.

#122 Reality 1 on 10.26.17 at 3:42 am

” A quiet and modest life brings more joy than a pursuit of success bound with constant unrest. ”

___________
Albert Einstein

A different kind of genius.

#123 fancy_pants on 10.26.17 at 7:45 am

Garth’s best tidbit to date (from yesterday’s post)

“People don’t vote for politicians who promise less. They vote for guys who will tax everyone else to give you more.”

#124 Madcat on 10.26.17 at 7:54 am

I’m a little confused about how the BOC calculates inflation because according to them inflation is low…. Shelter is the main expense and it’s through the roof…. I’ve been renting for 12 years in the lowermainland (same suite)…. My landlords getting old and after looking at what’s available nowadays I’d say my shelter cost will increase by 150%-200% as soon as I’m evectied and have to find a new place… So what’s the deal?

#125 maxx on 10.26.17 at 8:19 am

#17 Jungle on 10.25.17 at 6:28 pm

….”Be a team player and excellent communicator,…”

These things only get better with time, if you let them, as does jumping over life’s hurdles together.

There’s absolutely no app for these.

#126 crowdedelevatorfartz on 10.26.17 at 8:23 am

@#111 Lost but…..
“…a documentary of T2 , Moroneau and their majority caste of mute MP’s…..”

+++++

Speaking of mute MP’s ( ironically just like the Harperites before them)

Does anyone know where the Newfoundland Liberal MP (that dared vote against his Party’s wishes) is swinging in the gibbet?

http://www.google.ca/url?url=http://archivalmoments.ca/tag/gibbet-hill/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjSyb-oo47XAhUNzGMKHS43BQsQFggUMAA&usg=AOvVaw0zKpFWiF8uzyrColm4V8d8

#127 Freebird on 10.26.17 at 8:48 am

Choose to be right or choose peace.

Short term payoff vs long term ROI.

Trust me.

#128 Freebird on 10.26.17 at 8:51 am

And,

Happy spouse, happy house…rented and not condo ; )

#129 Dharma Bum on 10.26.17 at 8:52 am

Love is ZPR in your joint portfolio.

#130 Dissident on 10.26.17 at 9:00 am

Saw on City News that BOC is going to announce another interest rate hike on December 9th. Good think I already locked in my variable.

#131 Dissident on 10.26.17 at 9:04 am

#120 Jane24 on 10.26.17 at 2:31 am

But yes as Garth has commented my husband and I have joint financial everything, my married children keep separate accounts. Must be a generational thing.

– – – – – – – – – – – – – – – – – – – – –

Ditto. But that’s because we met and got married later in life (35/36). By then, you have lived so long with your ‘financial identity’ and have a hard time erasing it.

Actually, I read an article that said its better to have your own personal account in addition to a blended, shared account, so that you can retain some of your ‘financial identity’ within a marriage.

Bottom line, ideally, you should know what money your spouse has and how the two of your can work together to meet your financial goals, pay taxes, manage expenses, etc. Its not always perfect.

#132 Dissident on 10.26.17 at 9:15 am

#87 Smoking Man on 10.25.17 at 9:17 pm

A shit load of people are screwed. You got one month to unload your property. after that. doomed

– – – – – – – – – – – – – – – – – – – – –

Our realtor is all like, “So, when you guys ready to go back out and look at houses? Let’s getcha out there!” And I’m like …”haaaa, let’s wait a bit”. Their reply, “Well don’t forget its all about the perfect house, and when that perfect house is gone, its gone”. And I’m thinking, “Nice angle, but I’ve seen plenty of ‘perfect’ houses pop up, all at varying prices, so I’m gonna wait cause there is no such thing as a ‘perfect’ house, only a good house at a good price”.

#133 Ole Doberman on 10.26.17 at 10:00 am

#36 nonpulsed

“So, in the end I think I have discovered the secret to a successful marriage. Check your expectations at the door, and hang with someone who wants to hang with you. It doesn’t matter whether you are on a beach in Hawaii or a campground in Peter Lougheed Provincial Park, what matters is that she’s happy and you know you couldn’t be happier.”

That’s ok advice, but in the short to medium term she may want to hang with you, but in the med to long term that can all change and you can never see it coming.

Truth is love/marriage is self sacrifice, and from reading your post that could have been applied and balanced out your differences in the first marriage – and who knows you might have been happy and made it work.

Simple Christian principle, marriage is a dying of yourself, as Jesus Christ died for his church.

#134 Ole Doberman on 10.26.17 at 10:01 am

….btw that was suppose to be #42’s comment…

#135 Ole Doberman on 10.26.17 at 10:08 am

Guys here is my best marriage advice. Learn to trade stocks, make a million dollars, buy the house no mortgage so before you sign on the marriage dotted line all the assets are in your name.

Because no matter how good things look at the beginning they can always turn bad when you consider that human beings live to their 80’s, generally speaking, that would be a lot of decades to mess a marriage up. And even enough time for another marriage, possibly 2.

As far as I’m concerned if the man is in charge of the finances there is way less chance you’ll hear from the woman such things as “I’m unhappy and unfulfilled, I want a divorce”

And if it comes to that, guess what you own most of the assets.

#136 Tater on 10.26.17 at 10:13 am

#18 ole Doberman on 10.25.17 at 6:33 pm
Gartho this is a middle class blog if you really want to get ahead in life you have to learn to trade individual stocks by studying chart patterns. When you have several hundred thousand then you can diversify and balance relax and reap good income. But until then 5% returns are not sexy
—————————————————————

Any positive returns are sexy compared to the typical losses for TA punters

#137 Ian on 10.26.17 at 10:20 am

Gold equities on fire this am again. Finally! Goldcorp and DNG doing well.

#138 Tazi Bnu on 10.26.17 at 10:28 am

#30 Yanniel on 10.25.17 at 7:04 pm
I know you are not making any ETFs recommendation Garth, but I am trying to understand the following statement taken from you corporate site:

“The decision to go with DXP was easy,” says Doug, “and it’s now a constituent in all our model portfolios with more than $23 million invested in the product.” (http://www.turnerinvestments.ca/pdfs/17DYN014_DF_Advisor_Summer2017_EN_V1_CoverFeature.pdf)

How is DXP an “easy decision” when CPD and XPF clearly provide a better yield and lower MER?

CPD
————
Yield: 4.33%
MER: 0.51%

XPF
————
Yield: 4.58%
MER: 0.47%

DXP
———–
Yield: 3.89%
MER: 0.58%
___________________________________________

The Canadian preferred market space is highly inefficient, therefore alpha can be gained through skilled managers. With the Canadian preferred etfs you don’t pay that much more for active managers.

CPD(passive) owns the whole preferred market, including Bombardier and Aimia(Aeroplan). Their weighting system also gives extra weight to stocks near par(~$25). These preferreds have no upside and only the yield. It also owns a big majority of perpetuals, which will under-perform in a rising interest rate environment.

XPF(passive) owns 50/50 the Canadian preferred market and the US preferred market.These are two completely different markets. More than just geographically different. It also has the same problems as CPD.

DXP(active) owns more rate resets than perpetuals. These perpetuals are used to hedge the volatility of the rate resets. It also owns more discount preferreds(which have capital upside as well as a juicy dividend) than premium and par preferreds. They can also disregard companies that have serious credit problems(Bombardier and Aimia) as they have no obligation to pay their dividend. For ~.08% more fees you get much better management with a high probability at much better performance, low probability of matching the market, and a minuscule probability of under-preforming the market.

Other Canadian Preferred ETFs: RPF (active) run in a very similar way to DXP. Also a really good manager in charge. I would say these two are the ones to watch in this space.

ZPR(passive) Owns only Rate resets in a laddered equal weighting(over 5 years). It has increased weightings for issues in the years that have less issues, since each year must equal each other. ex. year 1 and year 2 has $5000 each. Year 1 has 5 issues so $1000 for each issue. Year 2 has 10 issues, so $500 for each issue. This is a stupid way to have the weightings.

HPR(Active) Owns mostly Rate Resets, but I don’t know that much about the manager or their mandate.

HFP(Active) Owns only floating rate preferreds and other floating rate derivatives. Highly one directional(will only make money in a rising rate environment). I also don’t know the manager or their exact mandate.

The preferred market is a good part of a complete breakfast.

You have a good knowledge of preferreds but not of CPD. It holds just 19% perpetuals and 78% fixed resets. Active management can add some alpha, and is worth considering in a mix with other ETFs (as we do, as Doug mentioned). — Garth

#139 Tony on 10.26.17 at 10:36 am

Anyone read any news on the new OSFI rate going from 4.89 percent to 4.99 percent? Seems to be no news anywhere yet the rate has been raised to 4.99 percent from 4.89 percent.

#140 Smoking Man on 10.26.17 at 10:38 am

USDCAD on Fire !!!!! WooHoo

#141 tom on 10.26.17 at 10:46 am

You mention raising rates, but don’t yields in this environment constantly fall for prefs?
if they are mainly rate reset, all the resets are resetting at lower yields than when issued.

So you talk about the yields and throw around numbers but isn’t the important fact that they will decrease?

The yield quoted is current. It declines a little as rates rise, but is more than offset with increasing capital values for rate reset preferreds. However, invest as you wish. It’s your money. — Garth

#142 Stan Brooks on 10.26.17 at 10:49 am

Good news.

Hydro bills going only to 181 CAD/month instead of 200 10 years from now.
Good guess that the actual bill will be north of 300/month?

85 % of it delivery charges, environmental fees etc.

It is called high standard of living.
When you pay a lot for nothing.

#143 Stan Brooks on 10.26.17 at 10:50 am

and the link:
https://ca.finance.yahoo.com/news/ontario-hydro-bills-rise-over-140149250.html

#144 Renter's Revenge! on 10.26.17 at 11:36 am

#139 Tazi Bnu on 10.26.17 at 10:28 am

I feel like having a good knowledge of preferred shares is like having a good knowledge of the steering and suspension system of a Toyota Corolla. It doesn’t matter how much you know about it, it’s never going to corner as well as a Corvette. Just slow down and then turn the steering wheel (i.e. buy CPD and forget about it) when you want to go around a corner. Save your brain power for analyzing common stocks, if anything.

#145 paulo on 10.26.17 at 11:43 am

Ontario should be looking at building generating infrastructure.
lets face it the advent of electric vehicles and the inevitability they will represent a significant percentage of vehicles on the road within a decade,and the steady increase in consumption of electricity in our connected world we will have a serious problem moving forward if we don’t get shovels in the ground soon.
Given the known generating technology out there and the unlikely advent of some clean power source, hate to say it but that only leaves nuclear as a viable large capacity generating system .
Ontario should consider building a massive nuclear generating station with the capacity to meet future requirements. if they get to it soon it would be up and running in 15 years or so.

#146 Yanniel on 10.26.17 at 11:49 am

Thank you very much Tazi Bnu for your detailed explanation. I really appreciate that.

Garth, thanks for your comment as well.

#147 Long-Time Lurker on 10.26.17 at 11:49 am

I read last night that Musk bought up Solar City and laid off a lot of workers. The source was Zero Hedge, I think. It looks like Tesla Motors and Solar City are in trouble. Musk must have over-reached and couldn’t make it even with subsidies. Since these two companies are bleeding, I think he might shut down US operations and move them to Red China. He’ll have lower costs and a big market over there. The problem might be the competition over there. I think Tesla Motors could have lasted in the US as a luxury car maker. Going mass-market is proving to be a mistake.
Space X seems to be chugging along and The Boring Company got a big deal to build a transit system somewhere on the east coast of the US but I forgot where.

SCM this is for you.

You’re wasting your time being a cry-baby here. What are you getting out of it really? Your bad attitude is hindering you. Like I said, a bad attitude is like a handicap.

If you’ve been reading the other commentators, you could have made money off of Tesla dropping and the Canadian dollar dropping. If you learned something about money and saved a bit of money, you could have made money because the other blog dogs are telling what to do.

So what’s keeping you from saving up a bit of money and learning something about money so you can make money? The only thing is your bad attitude.

If you want more money then get a snow shovel and shovel some driveways this winter. Don’t blow the money you make but think about how to make more money out of it. This is your ticket out of loserville.

If you put ten people on a tropical island like Survivor and give them a million dollars each and they do nothing but sit on their @sses then all of them have jack-squat even if they’re all millionaires. Wealth needs to be created and you have to get off of your @ss to do that. If you don’t create wealth then you’re just taking it from someone else who did. That’s why socialism works until you run out of other people’s money.

I might write to you again but this is enough for now.

#148 Stan Brooks on 10.26.17 at 11:56 am

Some here were looking down on Istanbul as inferior city as compared to Toronto for example.

Some facts:
https://en.wikipedia.org/wiki/Istanbul
14.1 mln population. urban area
subway length 93 km, soon to be 1000 km

https://en.wikipedia.org/wiki/Toronto
5.1 million urban area
subway length – 68 km soon to add York extension and that’s it for the next 20 years.

Canada GRP PPP:
1,752.910

Turkey GDP PPP:
2,082.079

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

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

#149 Fake News Again on 10.26.17 at 11:58 am

Sam Cooper of Post Media was on the radio today going on and on about all the “foreign money being laundered” in BC including 100s of millions…..in Real Estate. He continued by talking about how the BC Govt is doing absolutely NOTHING.

Yeah yeah I know…….”he’s wrong”.

Who is Sam Cooper? — Garth

#150 Fake News Again on 10.26.17 at 12:05 pm

#127 crowdedelevatorfartz on 10.26.17 at 8:23 am
@#111 Lost but…..
“…a documentary of T2 , Moroneau and their majority caste of mute MP’s…..”

+++++

Speaking of mute MP’s ( ironically just like the Harperites before them)

Does anyone know where the Newfoundland Liberal MP (that dared vote against his Party’s wishes) is swinging in the gibbet?

http://www.google.ca/url?url=http://archivalmoments.ca/tag/gibbet-hill/&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwjSyb-oo47XAhUNzGMKHS43BQsQFggUMAA&usg=AOvVaw0zKpFWiF8uzyrColm4V8d8

______________

Some day soon people will realize en masse we do not have anything that looks like a democracy but rather a dictatorial “Autocracy”. That’s when the fireworks will finally go off…..

#151 Ian on 10.26.17 at 12:16 pm

#141 Smoking Man

It is collapsing like a cardboard box in a rainstorm!

#152 AGuyInVancouver on 10.26.17 at 12:24 pm

#85 For those about to flop… on
The problem is those properties are still way overpriced. 12 years ago they would have been $600k. But with Poloz acting as timid and skittish as a virgin on her wedding night, we’re not likely to see a correction soon

#153 tom on 10.26.17 at 12:42 pm

@Stan

yeah Canadians do tend to look down on totalitarian dictatorships

but hey, awesome subway

#154 mike from mtl on 10.26.17 at 1:02 pm

And there is more to come as central banks keep tightening in 2018.

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

Don’t think so, gooberment is not stupid and knows full well how pickled in debt their voters are. The last two surprise increases (if you can call them that) just brought back 2015 levels and already the crying began.

Straight from the horse’s mouth:
‘Lot of things that have to come together’

http://www.cbc.ca/news/politics/bank-of-canada-poloz-interest-rates-cautious-1.4372066

#155 Tazi Bnu on 10.26.17 at 1:03 pm

#145 Renter’s Revenge! on 10.26.17 at 11:36 am
#139 Tazi Bnu on 10.26.17 at 10:28 am

I feel like having a good knowledge of preferred shares is like having a good knowledge of the steering and suspension system of a Toyota Corolla. It doesn’t matter how much you know about it, it’s never going to corner as well as a Corvette. Just slow down and then turn the steering wheel (i.e. buy CPD and forget about it) when you want to go around a corner. Save your brain power for analyzing common stocks, if anything.
__________________________________________

My “Toyota Corolla,”aka preferreds, portion of my portfolio is up about 28% for the trailing year. I don’t use the ETFs to invest in this space, hence my memory on CPD was wrong. I should have checked before posting, but Garth was good enough to add the correct details. For most(95%) people the ETFs are an excellent vehicle. An example of the alpha available in the Preferred space can be seen with RPF for the last year. RPF outperformed the index(CPD) by ~500 points. I go by NAV. I would say that’s worth the extra ~8 points of cost. DXP doesn’t have a year under it’s belt yet, but it’s run similarly and should achieve the same alpha as RPF. I would trust Doug’s “easy decision” more than a car analogy.

http://performance.morningstar.com/funds/etf/total-returns.action?t=RPF&region=can

#156 Deplorable Dude on 10.26.17 at 1:03 pm

Oh yeah…..US Congress passes first budget in 8 years…..making way for Trump’s tax reforms….and my portfolio just shot even higher….

#157 Stan Brooks on 10.26.17 at 1:08 pm

#154 tom on 10.26.17 at 12:42 pm
@Stan

yeah Canadians do tend to look down on totalitarian dictatorships

but hey, awesome subway
——————————
You mean Herr Harper and T2 were/are not authoritarian/totalitarian?

Cheers. Enjoy the democracy.

#158 Stan Brooks on 10.26.17 at 1:10 pm

#155 Stan Brooks on 10.26.17 at 1:08 pm
#154 tom on 10.26.17 at 12:42 pm
@Stan

yeah Canadians do tend to look down on totalitarian dictatorships

but hey, awesome subway
————————————
Democratic like bill 89

http://dailysignal.com/2017/06/27/new-law-canada-remove-kids-parents-reject-transgender-ideology/

or https://en.wikipedia.org/wiki/An_Act_to_amend_the_Canadian_Human_Rights_Act_and_the_Criminal_Code

#159 where's the love Garth? on 10.26.17 at 1:25 pm

Sounds like he sells mutual funds. – Garth

……….

huh? don’t paint with a broad brush. Good and bad in anything. We now have ‘smart-beta’ etfs — mer’s approaching 1%. And no historical data, yikes.

CIBI Premium Balanced Fund has a mer of .38% . Fund companies have made changes, ….we can thank etfs!!!!

#160 Smoking Man on 10.26.17 at 1:27 pm

JFK Files

https://www.archives.gov/research/jfk/2017-release

#161 re., 139 on 10.26.17 at 1:30 pm

great post and thanks

‘The Canadian preferred market space is highly inefficient, therefore alpha can be gained through skilled managers. With the Canadian preferred etfs you don’t pay that much more for active managers.’

spot on

and i agree , DXP is a pass

#162 David on 10.26.17 at 1:59 pm

I’ve been saying for months that the Canadian growth numbers were baloney. Ontario is broke and the manufacturing loss devastating. Housing is a house of cards. Feds working overtime to demolish their finances. Couple this with the intentional destruction of the pipeline projects and you have a recipe for tepid growth if not outright recession. The only thing we can hope for is U.S. growth to drag Canada along for the ride and a change in governments in BC, AB, ON and Ottawa. We need grownups in charge, not the children and incompetents currently in power.

#163 Stan Brooks on 10.26.17 at 2:08 pm

Electricity in Germany.

http://www.independent.co.uk/environment/renewable-energy-germany-negative-prices-electricity-wind-solar-a7024716.html

People in Germany are now being paid to consume electricity

The price of power in Germany briefly dropped to -€130 per MWh on 8 May
=====================

no carbon taxes, delivery, debt retirement, hydro hookers or pension charges.

Real sustainable energy.

#164 James on 10.26.17 at 2:48 pm

#161 Smoking Man on 10.26.17 at 1:27 pm
JFK Files
https://www.archives.gov/research/jfk/2017-release
____________________________________
Let me guess SM, It was an inside job that was outsourced to aliens just like the twin towers job. You fixate too much on conspiracy theories. You really need a full time job to do something with your life.

#165 Ole Doberman on 10.26.17 at 2:51 pm

#137 Tater on 10.26.17 at 10:13 am

#18 ole Doberman on 10.25.17 at 6:33 pm
Gartho this is a middle class blog if you really want to get ahead in life you have to learn to trade individual stocks by studying chart patterns. When you have several hundred thousand then you can diversify and balance relax and reap good income. But until then 5% returns are not sexy
—————————————————————

Any positive returns are sexy compared to the typical losses for TA punters
——————————————————-
I know many self made millionaires in their 20’s who got wealthy trading just by playing the charts

That sounds like crap. — Garth

#166 Overheardyou on 10.26.17 at 2:53 pm

#18 ole Doberman on 10.25.17 at 6:33 pm
Gartho this is a middle class blog if you really want to get ahead in life you have to learn to trade individual stocks by studying chart patterns. When you have several hundred thousand then you can diversify and balance relax and reap good income. But until then 5% returns are not sexy

I don’t have hundreds of thousands of dollars to invest, but beating inflating with what little savings I have is better than letting it sit in savings account with sub 2% interest ;)

Thank you for the informative post

#167 Fire Prices on 10.26.17 at 3:38 pm

And we are back with extreme fire in prices in condos and townhouses…..

Sure, extreme multi-million dollar homes have dropped a tiny bit but overall the market is cooking!

Seems all the cooling regulations that the feds and province implement utterly fail to stop the fire.

http://vancouversun.com/news/local-news/price-of-metro-vancouver-condos-surge-detached-homes-drop-survey

#168 Ronaldo on 10.26.17 at 4:16 pm

#148 Long Time Lurker

I might write to you again but this is enough for now.
————————————————————–

Lurker, you have already wasted too many keystrokes on this guy/gal/whatever. Trolls get their jollies out of people reacting as you just did. The best thing to do with trolls is to avoid them like their parents did. They crave attention and likely were shoolyard bullies. Don’t waste your time with it. Hopefully I have not wasted time telling you this. It is not what it claims to be. Imposter. Looking for attention.

#169 Lost...but not leased on 10.26.17 at 4:31 pm

#150

“Who is Sam Cooper?..Garth”

Unless being facetious….Sam Cooper is an investigative reporter with the Vancouver Sun.

He has published a number of stories re the infamous RiverRock casino and exposed what many have suspected for years, that $$$millions of dollars have been laundered through this(and other BC) casinos.

The RCMP have finally laid charges, even after a 2012 investigation was quashed by our then BC Attorney General( lawyer and Ex RCMP).

Much of the money was “washed” at the casino and then traced to numerous Real Estate transactions. These parties were referred to as “whale gamblers” who were recruited to take suitcases of $20 bills and “gamble” with them.

Just to give you a perspective , City of Richmond annual casino cut is 10%…..this peaked at approx.$20 Million a couple of years ago.

This is not news to the informed citizens…its classic case of too dam obvious that “the powers that be” couldn’t turn a blind eye any more….and our local media finally exposed the obvious.

I know of the story. Why should I know the local reporter? — Garth

#170 jess on 10.26.17 at 4:45 pm

scm might like this one

Bermuda cyber hack: Offshore law firm data hack leaves super-rich bracing for financial details to be released

Bermuda-based Appleby, which has offices in British tax havens, said some client data ‘compromised’ in 2016 cyber incident – leak comes
Ryan Wilkinson
a day ago
Bermuda cyber hack: Offshore law firm data hack leaves super-rich bracing for financial details to be released

http://www.independent.co.uk/news/business/news/appleby-offshore-law-firm-hack-data-super-rich-financial-details-bermuda-a8018451.html

#171 Lost....but not leased on 10.26.17 at 5:10 pm

#171 Jess

Leaves one wondering what happens to the wealthy if someone “hacked” and subsequently stole their funds etc. from these tax havens like Bermuda.

Would Bermuda have these deposits insured….aka who would be left holding the bag after the “robbery” ?

#172 Lost....but not leased on 10.26.17 at 5:26 pm

#164 Stan Brooks

Free power in Germany..

Fascinating twist under”UNintended” consequences coming soon to a dysfunctional bureacracy near you.

Anecdote: Our City has switched to water meters, once voluntary, now mandatory for holdouts . The PR was people were paying too much via flat rates….but “user pay”metering was cheaper and more socially responsible.

However, people complained that they were not paying for actual useage, but a minimum base rate applied. In other words…if you used LESS than the base rate..you were still charged the minimum(plus the cost of meter reading every 3 months.)

Same at the landfills..overkill on recycling deprives them of base cost recovery..thus up go the dumping fees.

Point is…the idealogues perfect world of renewable resources has a lot of peripheral consequences, some unforeseen, but many predictable under the “reducto ad absurdum” logic.

#173 Long Branch Apprentice on 10.26.17 at 5:39 pm

#165 James

You seem pretty fixated on Smoking Man, I bet you practice your SM impressions in front of the mirror at night after you post on here.

Full time jobs are for losers, or at very least, Boomers.

#174 Smartalox on 10.26.17 at 6:12 pm

@Flopper:

Regarding the listings on Inverness and Sherbrooke:

I spend a fair bit of time in this neighbourhood, (sorry, not a RE agent) and I know that there is a LOT of ‘onshore’ money leveraged to speculate on properties here.

These are not globally wealthy, money-laundering ‘foreigners’. These are long-term Canadian families pooling HELOC money to purchase ‘investment properties’.

I suspect these sellers are taking big cuts because the HELOCs involved are starting to get a little shaky.

#175 Gravy Train on 10.26.17 at 6:40 pm

#57 For those about to flop… on 10.25.17 at 8:01 pm

Hey, Flopster. Do you suppose the American sheeple will ever figure out that they’ll be fleeced by Trump’s tax plan?

“I love the poorly educated.” — Donald Trump

#176 Paul on 10.26.17 at 11:19 pm

Quellette just arrested in Montreal on corruption charges.
You can’t make this stuff up,

#177 steerage steward on 10.27.17 at 2:15 am

That’s America

https://m.youtube.com/watch?v=Izj2xo97D9k

#178 Fish on 10.27.17 at 11:05 pm

Right about this time. Gordon Lightfoot