KISS

DOUG By Guest Blogger Doug Rowat

According to Manulife, US companies are on the verge of a significant milestone:

With a handful of companies left to report, S&P 500 companies have already set a new record for share buybacks, repurchasing $178 billion worth in the first quarter of the year. On a trailing 12-month basis, corporations are now on pace to surpass $1 trillion in combined buybacks and dividends for the first time.  Digging further into the numbers, companies have spent $564 billion on buybacks and $428 billion on dividends over the past year, totaling $992 billion. If the remaining firms give that a slight boost it would mark the historic breach of the $1 trillion threshold.

Thanks to Trump’s corporate tax reform last year, which brought the US domestic corporate tax rate to a much more competitive 21% from 35% previously, and the reform’s accompanying lower repatriation tax rates, companies’ overseas cash stockpiles, which some analysts estimate at as much as US$3.1 trillion, are starting to make their way back to the US. So, companies are suddenly loaded, and as Howard Silverblatt, a senior index analyst at S&P, adds “cash remains near or at its highs, giving companies the ability to do whatever they want”.

Whatever they want. As a portfolio manager with a positive view of the market, you can’t help but love language like that. Capital investment and share buybacks are both positive uses of the cash, but let’s focus simply on the dividends. I mentioned in a blog post last month that, historically, S&P 500 companies have grown their dividends at 5.9% per year. Here’s the chart:

All Rise! S&P 500 dividend growth

Source: Bloomberg

Now here’s the most simplistic market analysis that you’ll hear all year: if an index (i.e., the companies within that index) pays out more to investors, then more investors will buy the index. But sometimes it’s the straightforward, uncomplicated analysis that’s overlooked. The correlation between dividends and S&P 500 market direction has been 91% over the past 30 years.

US companies now have the capacity over the next several years to easily eclipse the 5.9% historical dividend growth rate, which would almost certainly be positive for the stock market. Here’s what the same dividend chart looks like when you overlay the S&P 500:

Long Term, where dividends go so goes the market

Source: Bloomberg

Companies now have loads of cash and much of it will go toward dividend increases, and there’s a high likelihood that if companies raise dividends, equity markets will move higher.

Thus ends the world’s simplest market lesson.

———————–

Finally, the FIFA World Cup starts in Russia next week, and picking the winners has become a fascination for Wall Street. In fact, more and more elaborate reports predicting the results are published each tournament. UBS, for example, deployed a team of 18 analysts and editors this year, and ran a computer simulation of the tournament 10,000 times concluding that Germany will win. You can read the full report here (https://www.ubs.com/content/dam/assets/wm/global/cio/doc/investing-in-emerging-markets-en.pdf), but below is a summary of the odds that they give:

UBS: Germany favoured to win World Cup

Source: UBS

However, despite all this manpower and number crunching, it’s worth noting that UBS has been dead wrong in its predictions for the past two tournaments. So, here’s much simpler math for you: of the 20 World Cup tournaments to date, 13 have been won by just three countries—Brazil (5), Italy (4) and Germany (4)—so picking one of these three in your office pool is a pretty good bet. However, don’t pick Italy. Thanks to a crushing playoff loss to Sweden last year, Italy missed the World Cup for the first time in six decades.

Me? I’ll put my usual 100 bucks on England, but I also assume that the Leafs will win the Stanley Cup every year.

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

98 comments ↓

#1 $100 on 06.16.18 at 2:53 pm

Do you use a bookie too, and is his name Bruno or Max?

#2 conan on 06.16.18 at 3:11 pm

Mistake on that chart. You have Egypt mixed up with Trump’s chances to get re elected in 2020.

#3 Shawn Allen on 06.16.18 at 3:22 pm

Interpretation of Charts

Doug, respectfully, I have a couple of comments /questions on the charts. And I realise the charts are from Bloomberg, so I can blame the former Mayor of New York…

1. In the first chart with a 5.9% CAGR covering 30 years, should it not be a logarithmic scale in which case a constant growth rate becomes a straight line? With an arithmetic chart the growth rate appears to skyrocket in more recent years. While the dollar value of dividends indeed skyrockets, the percent growth may not have? Admittedly though the magnitude of dollar growth is basically way understated visually in a log chart so I sometimes think the charts should be shown both ways. Or the arithmetic should have a warning that it does not accurately portray how the growth rate changes over time.

2. In the second chart, since we are looking for correlation, the arithmetic scale is not as much of a concern. But is it fair that the right hand scale rises 11 times, while the left hand scale rises 29 times? Am I wrong to view that as an inconsistency in the scales even though “everyone” seems to do that. By doing that one can ensure that ANY two curves can pretty much meet at the bottom left and top right. Does that not exaggerate the correlation visually? I ask this in all sincerity as it has always been a sort of pet peeve of mine in charts that I see.

#4 Stan Brooks on 06.16.18 at 3:27 pm

Spain has much deeper and better quality team than Germany.

I like Germany but it depends a lot on the goalkeeper just coming out from a long injury and midfielder Toni Croos and is in rather uneasy group.

They will have very difficult game with Mexico.

Sweden is a very good team, broke Holland in the qualifiers.

My heart is with England, the brain with Spain.

Plus Germany winning anything in Russia? That would be a sight…

As for the Maple Leafs (associated in my brain with suckers, you can buy maple leaf suckers for a loonie in Niagara on the lake shops … maple leaf sucker for a loonie, what a combination of very, very appropriate words…) they are just an example of extremely weak/gross mismanagement despite all the fans and the money they have (being the richest team by far in NHL).

Lack of sparks, professionalism, quiet, calm underachievers with big egos and small balls.
Considering the resources the club has, lack of Stanley cup for that long is a major, major ‘achievement’, they are epitome for the lack of imagination and creativity typical for that city.

And the fans will do anything for a ticket instead of leaving Air Canada Centre empty.

No wonder the populace goes for ‘million dollar’ cardboard particle houses and glass condos, that is just it’s mental capacity.

Cannabis will make everyone perfectly happy again.
Go T2.

#5 Shawn Allen on 06.16.18 at 3:27 pm

Wither Competition?

“Thanks to Trump’s corporate tax reform last year, which brought the US domestic corporate tax rate to a much more competitive 21% from 35% previously…”

****************************************
Doug, in a competitive industry I would have expected much or all of the lower taxes to be competed away in the form of lower prices to customers. Given that the vast bulk of it seems to have fallen to the bottom line and that seems to be expected to remain the case, does this suggest that the S&P 500 companies generally face little competition? If so, it puts the lie to the notion that these large companies operate in a competitive environment. In which case more fuel for the people to revolt. They are being served by quasi monopolies? Your thoughts?

#6 Shawn Allen on 06.16.18 at 3:30 pm

Who Controls the Money Supply?

Blacksheep on yesterday’s edition said:

Interest rates (the FED) combined with, the supply vs demand equation, controls money creation volumes, not any government mandated, bank reserve policy, fractional or otherwise…

***********************************
And is that a good thing or a bad thing? I would think control by supply and demand is a good thing? Then again is FED control any much different than government control of the money supply?

#7 Doghouse Dweller on 06.16.18 at 4:07 pm

iShares Core S&P 500 Index ETF

12m Trailing Yield net of management fees and other fund expenses. as of Jun 14, 2018 1.36%

1.36% – let that sink in for a minute !

Last year it was 2% . As Chrystia Freeland recently stated ” Facts Matter ” — exaggerated Bloomberg charts , not so much.

#8 smoking man on 06.16.18 at 4:09 pm

Dodge was a great BOC dude.

Like his thinking. Bulldoze the buggers sucking on a Saudi Arabia teet. Traitors to Canada.

https://www.zerohedge.com/news/2018-06-16/former-bank-canada-head-pipeline-protesters-may-be-killedso-be-it

#9 domain on 06.16.18 at 4:33 pm

Something is afoot in the emerging markets, and in the US. Canada is standing on one leg on the edge of a cliff, and about to be pushed.

Recession dead-ahead.

#10 Max on 06.16.18 at 4:57 pm

Can anyone comment on why is the Shanghai Index nearing 3000 points (besides the tariff scare)

#11 Doug Rowat on 06.16.18 at 5:16 pm

#3 Shawn Allen on 06.16.18 at 3:22 pm
Interpretation of Charts

Doug, respectfully, I have a couple of comments /questions on the charts.

1. In the first chart with a 5.9% CAGR covering 30 years, should it not be a logarithmic scale in which case a constant growth rate becomes a straight line? With an arithmetic chart the growth rate appears to skyrocket in more recent years. While the dollar value of dividends indeed skyrockets, the percent growth may not have? Admittedly though the magnitude of dollar growth is basically way understated visually in a log chart…

You know my title was KISS, right?

–Doug

#12 PO'ed in AB on 06.16.18 at 5:29 pm

#55 – With regards to your comment, why then are we blocking Gateway, Trans Mountain expansion, Energy East & pushing through Bill C-48 The Tanker Moratorium Act which does not ban tankers at all? Bill C-48 bans the cargoes that go into tankers, including regular crude oil & condensates (ie propane) among the usual culprits “TAR SANDS OIL” of similar weight API to that shipped up the St Lawrence River to Levy PQ from Venezuela, with no upstream/downstream emissions restrictions, as well as all that oil imported to eastern central Canada from the USA.

Hypocrite thy name is central Canada, the LPOC & anyone supporting regional economic warfare against others who don’t think like they do, or just block it outright with the benevolent gaze of the Federal government. Want some cheese to go with that? How about some whine on wine or even tariffs against same brand beer imported for personal consumption in another province?

The place is dysfunctional. I give it a few more years & it all collapses inwards. Enjoy the decline.

#13 Pascal Delaunay on 06.16.18 at 5:38 pm

Doug,
Share buy back is wrong!
The amount of money used during the last 3 years on this process is astonishing. It is a way to dilute the existing shares available, to prop up the value of the company in a total artificial way and make sure the executive members are rewarded with big bonuses. It does not help the company. Large amount of money has been borrowed to be used for this process, tanks to the very, very low interest rates maintain by those stupid central bankers. This money should be used for research & development, innovation, investment done for the future of the company. It is part of this crony capitalism we have now and tottaly wrong.

#14 Doug Rowat on 06.16.18 at 5:43 pm

#7 Doghouse Dweller on 06.16.18 at 4:07 pm
iShares Core S&P 500 Index ETF

12m Trailing Yield net of management fees and other fund expenses. as of Jun 14, 2018 1.36%

1.36% – let that sink in for a minute !

Last year it was 2% . As Chrystia Freeland recently stated ” Facts Matter ” — exaggerated Bloomberg charts , not so much.

The S&P 500 is up about 15% in the past year, so yield will decline. Is that bad? And Bloomberg data just is. There’s nothing to exaggerate.

–Doug

#15 tccontrarian on 06.16.18 at 6:03 pm

World Cup 2018:

My pick for winner is……………..Iceland!

Or Portugal (if Ronaldo has a ‘peak moment’ every game).

But Uruguay is loaded with some goal-scoring talent and could surprise as well. Who knows, really!

Much easier to ‘play’ the markets – odds are easier.

TCC

#16 This week on 06.16.18 at 6:24 pm

Next week?

I take it this post was written some time ago?

#17 Ice Man on 06.16.18 at 6:27 pm

May as well have bet on Italy. Same result.

Should have bet it on Iceland.

#18 Dogman01 on 06.16.18 at 6:32 pm

Ok…I agree Doug.
Always worked off premise that a company is either growth or dividend …why own it unless it makes a profit and pays the owners.
Or
The space it is in is so ripe for growth all profits should be put into expansion.

But share buyback….not so sure. If you cannot use it to expand why not just give it back to the owners?

I invested in Harvest Energy Trust….they had some cash…bought a refinery, obviously knew nothing about refinining….

Ok VGG – VANGUARD US DIVID APRECT IDX UNT ETF

Is it a good play on your post?

Keep up the yeoman work on the weekends

#19 Smoking Man on 06.16.18 at 6:44 pm

I’m in the town of funner California. It’s somewhere between Hang Over and a Good Drunk.

Good wisdom tonight when in the jack zone.

#20 Newcomer on 06.16.18 at 7:04 pm

That was an interesting post. Thank you, Doug.

The WaPo recently pointed to buybacks as lying behind the mother of all bubbles. The guy more-or-less takes the opposite position on the same phenomenon. Do you think his worries are reasonable?

https://www.washingtonpost.com/business/economy/beware-the-mother-of-all-credit-bubbles/2018/06/08/940f467c-69af-11e8-9e38-24e693b38637_story.html

#21 Screwed Canadian Millenial on 06.16.18 at 7:07 pm

Boy oh boy I’m not seeing much here about HIGHER WAGES FOR WORKERS. Isn’t that how the billionaire globalist elites like Trump sold the corporate tax cuts to the MAGA plebs? Like I said, conservatives only exist to make guys like Soros, Buffett, Bezos, Gates A LOT richer.

Meanwhile who picks up the tab? The middle class of course.

Federal budget deficit climbs 66% in May
https://www.marketwatch.com/story/federal-budget-deficit-climbs-66-in-may-2018-06-12

Trumps corporate tax cuts blows-out US Budget deficit
https://www.macrobusiness.com.au/2018/06/trumps-corporate-tax-cuts-blows-us-budget-deficit/

>The budget gap rose 66 percent last month from a year earlier, the Treasury Department reported on Tuesday. Spending rose by 10.7 percent to $363.9 billion, compared with a 9.7 percent fall in receipts to $217.1 billion.

Typical same old conservative Republican accounting. Cut taxes for the rich, blow up spending on military industrial complex, explode the deficit, crash the economy, leave a mess for the Democrats to clean up. Same pattern for 40 years now. If not the last 100.

What a joke.

>Corporate tax revenues, for example, were down $42 billion, about 25 percent

Corporate tax revenues down 25%. Wow. Conservatives must think money grows on trees. Free stuff for everybody!!!

#22 Ian on 06.16.18 at 7:11 pm

Argentina is garbage. They barely qualified for the tournament and Iceland could have had three goals today. Croatia probably beats them Thursday.

I’d be very surprised if it’s anyone other than Brasil or Germany.

Spain or Portugal outside chance.

England’s my team, but they always implode. Who knows, maybe this tournament they go well but hard to see it with that lousy midfield.

#23 Nonplused on 06.16.18 at 7:16 pm

Ryan,

Betting on the Leafs, or any Canadian team, to win the cup is a bad bet. It hasn’t happened since expansion and I think it is unlikely it ever will.

Canada has 7 of the 31 teams, so about 23% or just under 1/4 of the total. So if the salary caps and draft system worked, you’d expect to see a Canadian team win about once every 4 years on average. But it hasn’t happened since expansion in 1993. So that’s 25 years without something happening that should on average happen every 4 years or so. If you calculate out the odds of that, and it’s not a straightforward calculation, the odds are pretty small. Not to say it couldn’t happen naturally, but the odds are so small you’d never expect it.

That’s not to say the NHL is rigged. What’s happening instead is that the marque players all migrate south and have ever since the Gretzky trade. It just doesn’t make sense to have the best players like Gretzky and Crosby playing in small markets. Even from an economic point of view you want those players playing their 40 home games in large TV markets. So that’s where they end up, no matter which country they come from.

Now you might say “can 1 or 2 or 3 players make that much difference?” Well, although he never won a cup again he turned the tide around everywhere he played, so I would say yes it can.

Now the Leafs are not a small market team, but they are also in a position where they really don’t have to market their product. They are sold out every game and people watch the games on TV whether they win or lose. So it’s not necessary for them to win the cup to succeed.

For these reasons it is unwise to chose too many players playing for Canadian teams in your office dream pool. The Canadian teams only need to be good enough to be able to win games, not necessarily good enough to win the cup. Sometimes they get as far as the Stanley Cup but even that is getting increasingly rare. But even then they don’t seem to have the legs left to win 4.

#24 conan on 06.16.18 at 7:18 pm

Iceland 1 Argentina 1

That’s a win for Iceland in my books.
They are going to be bigger than the Jamaican bobsled team and Eddie the Eagle combined.

Population of Iceland = 338,000

https://www.youtube.com/watch?v=0-7IHOXkiV8

#25 theoryAndPractice on 06.16.18 at 7:21 pm

I just did 1 simulation and 2018 world cup winner will be Brasil :). UBS is wrong after 10,000.

#26 For those about to flop... on 06.16.18 at 7:35 pm

Well,InfLewenza got to kick my bum this morning.

There’s probably houses in Australia worth more than the soccer team…

M43BC

“This Map Captures the Real Value of Each Team at the World Cup

Neymar, Harry Kane, Lionel Messi—each of them is worth well over $100M for their innate talent on the soccer field. Such high-profile players are expected to perform at the top of their game in the 2018 World Cup, but they got us thinking of a new way to view the competing teams. Instead of individual talents, what if we looked at the total value of all the players on a given roster?

We originally found the numbers behind our visualization at transfermarkt.com, a site that tracks and measures the worldwide marketplace for top soccer players. We used the website’s numbers to create a unique map of talent at the World Cup. The size of each country represents the total value of the players on the national team, with the color corresponding to the region. We also threw in the national soccer emblem from each country just for fun.
Top Ten Most Valuable National Teams
1. France: $1,102M

2. Spain: $1,055M

3. Brazil: $1,001M

4. Germany: $901.3M

5. England: $892.1M

6. Belgium: $769.6N

7. Argentina: $707.3M

8. Portugal: $474.1M

9. Uruguay: $380.2M

10. Croatia: $367.5M

Our map reveals a few surprises about the teams competing in the World Cup. First off, there is a great deal of inequality between the rich countries in Europe and the rest of the world. And in fact, 6 out of the top 10 countries are from Europe. This makes a certain amount of sense given how European soccer leagues tend to pay the most money for top talent. We would expect people who grew up playing soccer in Europe to remain close to home as professionals.But just look how much bigger the blue European countries are compared with the green African. Take an actual example from the World Cup. Spain ($1,055M) is scheduled to play Iran ($45M) on June 20. The Spaniards are worth more than 20 times as much as the Iranians. We doubt it’s going to be competitive. At the extreme low end, Panama’s roster is valued at only $9M.

A second and related issue concerns the relationship between player valuations and talent. Remember, national teams don’t pay their players much if anything—these guys make a living playing for professional soccer clubs. So if the market is accurate, we would expect those countries with the richest players to win most of the time. Taking a look at the history of World Cup winners reveals that to be the case: over the last 80 years, the only non-European teams to even make it to the final of the competition have been Brazil and Argentina. And even then, both of those countries are loaded with millionaire talent. The last World Cup final game without a European team was way back in 1950 (Uruguay over Brazil, 2-1). Clearly, money buys talent, which in turns wins World Cups.

What can this tell us about who is most likely to win the 2018 World Cup? It depends on how teams emerge from group play, but the one team with the best chance to win it all is at the top of the list: France. The French roster is worth more than the entire bottom 14 teams combined. With over $1.1 billion in talent, it will be nothing short of a catastrophe if the French side doesn’t at least make it to the knockout rounds.”

https://howmuch.net/articles/most-valuable-teams-at-the-world-cup-2018

#27 For those about to flop... on 06.16.18 at 7:43 pm

Robax,you didn’t think I was gonna let you join the 59 club did ya?

I appreciate the effort,you have Switzerland in my pool because you are the most neutral of The Three Amigos…

M43BC

“Breaking Down World Cup Prize Money in One Visualization

The U.S. soccer team failed to qualify for this year’s World Cup in Russia, and that’s going to set back more than just the development of youth soccer in the United States. The national program will also lose out on a jackpot of winnings just for participating in the tournament.

Did you know that FIFA will pay out an amazing $791M in combined incentives for the 2018 World Cup? That figure includes $400M for the national teams and an additional $391M for the various soccer clubs contributing their employees (the players) to the tournament. Our new visualization breaks down the prize money each team stands to win depending on how they perform in the tournament. We created a pie chart to look like a soccer ball where each color corresponds to a tranche of prize money. We also included the relatively percentage of the overall purse each team stands to gain for easy reference.

Our visualization demonstrates how FIFA establishes an incentive program behind each game, but not exactly how you might think. For the championship match, the winning team stands to make an additional $10M (the difference between first and second place). There is still a payoff for competing for third place, but only an extra $2M. Teams finishing 5th-8th similarly stand to make $4M more than the teams they beat in the elimination round. That all makes perfect sense.

But the most interesting part of our visualization is how it reveals the equality in participating in the World Cup regardless of how a team performs. The worst-case scenario is that a country loses every single game in group play and fails to make it into the elimination rounds. That team would still go home with $8M. That’s only 2% of the total purse, but as a group, the teams failing to advance from group play earn the most collective money at $128M. And that’s not even counting the money that FIFA pays to professional clubs that allow players to compete on national teams as well as other disbursements, which brings the total outlay to $791M.

All this goes to show that it pays to make it to the World Cup, even if a team gets blown out in every single game. Certainly, a lot of national teams can use the extra cash to help fund player development programs and foster a love of the game. And teams take every chance to make as much money as possible—that’s why Nigeria will be wearing such eye-popping jerseys. That’s just another reason why it was such a disappointment for the Americans to miss the chance at competing in Russia.”

https://howmuch.net/articles/world-cup-2018-prize-money-per-team

#28 For those about to flop... on 06.16.18 at 7:52 pm

O.k. So that’s a bit of reading material for the sports jocks on the blog.

How about something for the corporate dorks on the blog?

I can do that…

M43BC

“Revealed: The 20 Companies with the Worst Pay Gaps Between CEOs and Workers

A few years back, the SEC passed a rule forcing publicly traded companies to disclose the ratio between CEO compensation and median worker pay. Many observers thought the rule would go away with President Trump’s election, but they were wrong—companies are now disclosing their pay ratios before a June 30 deadline. And surprise! The results so far don’t look good for many companies in the S&P 500.

Our visualization highlights the 20 biggest pay gaps in America according to data collected by the AFL-CIO. We started by placing a photo of the CEO and the name of their company directly above their total compensation. We then added the median worker salary, illustrating the different pay ratios with a series of corresponding circles. The bigger the circle, the bigger the ratio. This is a straightforward way of representing the data, and it reveals several key insights into executive compensation in corporate America.
Let’s start by getting clear on how to read the chart. For example, Mattel has the biggest circle on the visualization. For every $1 an average worker makes, the CEO takes home $4,987. Several companies pay their CEOs well over 1,000 times as much as the average worker. However, overall CEO compensation does not exactly follow the ratio. In fact, Richard Fahn, the CEO of Royal Caribbean Cruises, has the lowest pay ratio on our visualization at $728. But overall he gets paid more than 9 other chief executives on the list. That’s because Royal Caribbean compensates its employees better than other companies. In fact, the best company for average workers is Wynn Resorts, where the average person takes home $44,437. That’s pretty good all things considered, but not nearly as good as the $34.5M that Stephen Wynn takes home.

We should also point out how there are several important underlying assumptions behind the data. In fact, on page 17 of its actual rule, the SEC explicitly refuses to define the term “employee,” only stating that it includes anyone employed on the last day of the previous fiscal year whether in a “full-time, part-time, seasonal or temporary” capacity. Each company is also “permitted but not required” to annualize each employee’s compensation, which further complicates the data. CEO pay also include some fuzzy numbers, like the expected future value of unvested stock or the value of non-monetary forms of compensation, like a CEO’s security detail. Both factors tend to inflate the ratios, especially in the retail sector (where there is high seasonal employment).

It’s worth pointing out that even if these numbers are inflated, they still represent an enormous disparity in compensation. If Mattel’s CEO was paid only 3,000 times more than the average worker as opposed to 4,000 times more, would it be any less astonishing?”

https://howmuch.net/articles/top-20-companies-with-largest-pay-ratio

#29 TRUMP on 06.16.18 at 7:53 pm

ENJOY IT WHILE YOU CAN!!!

The Hawaii Volcano on the big island will not stop and cannot stop spewing lava onto the surface of the earth.

It will keep going and eventually fill every ocean, lake, and river and then cover every square inch of land on the planet.

And your WORRYING about interest rates, real estate values, and stock markets for what??

THE DOLLAR BILL CAN’T SAVE YOU FROM MOTHER NATURE’S PLAN.

ENJOY YOUR WEEKEND !!!!!!!

#30 For those about to flop... on 06.16.18 at 7:57 pm

Pink Pollen falling in Burnaby.

These guys have just gone nuclear on their asking price,deducting 33%.

It was purchased for 1.19m in July 2017 and the assessment comes in at 1.30

They are obviously just trying to get a bidding war happening ,but a lot of people are not interested in that anymore.

Go jump in the Lake…

M43BC

7954 Lakefield Drive, Burnaby paid 1.19 July 2017 ass 1.30

May 2:$1,489,000
Jun 13: $999,999
Change: – 489001.00 -33%

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

https://www.rew.ca/properties/R2279684/7954-lakefield-drive-burnaby-bc

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

Feel free to make a donation.

Flop For Fox Fund…

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

#31 For those about to flop... on 06.16.18 at 8:00 pm

Pink Pollen falling in Burnaby

These guys have been at it for around 6 and a half months now ,and have just adjusted the asking price again.

On the hook for 1.87 for the June 2016 purchase, the latest ask is 1.89 ,which won’t get the job done.

Unless the job was to get buried in debt…

M43BC

6843 Salisbury Ave,Burnaby.

Paid 1.87 June 2016 Ass 1.45 ,asking 1.89

2017-11-28 : $1,850,000
2017-12-28 : $2,088,000
2018-05-10 : $1,938,000
2018-06-13 : $1,898,000

https://www.zolo.ca/burnaby-real-estate/6843-salisbury-avenue

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

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

Feel free to make a donation.

Flop For Fox Fund…

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

#32 Lost...but not leased on 06.16.18 at 8:00 pm

Soccer VERSUS watching paint dry….

Bueller…..

…Buuueeellleeerr !!!!

#33 For those about to flop... on 06.16.18 at 8:02 pm

Pink Pollen falling in Richmond.

These guys with their latest reduction have fallen into Pink Snow territory.

Picked up for 1.78 March 2017 ,they just took 100k off and are now asking 1.88.

If it goes for this price they would roughly break even ,but I believe Richmond will be fertile hunting grounds for vultures eventually.

Assessment only comes in at 1.74 so the realtor has their work cut out for them.

Are they Dun?

Are they heading for the Cliffe…

M43BC

4902 Duncliffe Rd, Richmond. Paid 1.78 March 2017.

Assessment 1.74 .

Asking 1.88

https://www.zolo.ca/richmond-real-estate/4902-duncliffe-road

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

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

Feel free to make a donation.

Flop For Fox Fund…

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

#34 Long-Time Lurker on 06.16.18 at 8:03 pm

Regarding the cat photo:

Is this your attempt at a beard by association, Doug? At least you got more whiskers into your blog post. We’ll see what the comment count is tomorrow. Nice try.

#35 The Horror Of It All on 06.16.18 at 8:10 pm

#29 Trump – Enjoy your weekend, as we have a surprise coming your way, called the Death Star Strategy.

#36 Doghouse Dweller on 06.16.18 at 8:14 pm

#14 Doug Rowat
Its a 12 month trailing yield . Not like if I bought last year vs if I bought today. Price is irrelevant – No ?
2% vs 1.3% Whatever ! The yield vs risk is pathetic ! Up 15% from cheap loans and stock buybacks which should be illegal. Stock buybacks were once deemed illegal. Now they are linear graph fuel.

S&P 500 Shiller P/E: 32.5 ( %)
Shiller P/E is 92.3% higher than the historical mean of 16.9

The market will be calling back the 15% and much more in short order.

I`m really starting to hate these index products . They loaded up my telecom div index fund VOX ( which has been doing terrible by the way ~-25% ) with facebook, google, yahoo,twitville and all the other crap they could find.

https://www.forbes.com/sites/aalsin/2017/02/28/shareholders-should-be-required-to-vote-on-stock-buybacks/#5a6750686b1e

#37 Doug Rowat on 06.16.18 at 8:15 pm

#23 Nonplused on 06.16.18 at 7:16 pm

Betting on the Leafs, or any Canadian team, to win the cup is a bad bet. It hasn’t happened since expansion and I think it is unlikely it ever will.

…the odds are pretty small. Not to say it couldn’t happen naturally, but the odds are so small you’d never expect it.

Of course it’s a bad bet. But every so often…

2016, Cubs, game 7, 10th inning.

–Doug

#38 NoName on 06.16.18 at 8:20 pm

Dude study in collective behavior, but as a side projects he analyzes soccer games.

https://www.youtube.com/watch?v=AnYRTdOW0Uk

#39 young & foolish on 06.16.18 at 8:23 pm

“The WaPo recently pointed to buybacks as lying behind the mother of all bubbles. The guy more-or-less takes the opposite position on the same phenomenon. Do you think his worries are reasonable?”

I was wondering the same thing ?????

#40 NoName on 06.16.18 at 8:30 pm

here are analytics for my team

http://twelve.football/analytics?analysisId=3f3ddd04d8884eccbfbfa90b61890b2f

#41 For those about to flop... on 06.16.18 at 8:37 pm

Race to a million.

As prices drift slowly lower you can already get a knockdown in the low 900s.

Who wants to pay 900k for a heap of crap?
.

Well this example of detached houses sliding back below the million mark in Vancouver proper ,features something brand new,to be completed next month.

It has been a few years since much was sub 1m so it is a new concept to a lot of people, but as it catches on less compromises will have to be made.

The major compromise with this one is that it is a Infill ,basically a glorified coach house, I guess you could say ,but it will be mould free and turn key…

4650 Baldwin St,Vancouver

Asking 1.06

Brand new.

https://www.zolo.ca/vancouver-real-estate/4650-baldwin-street

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

Feel free to make a donation.

Flop For Fox Fund…

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

#42 conan on 06.16.18 at 8:52 pm

“Soccer VERSUS watching paint dry….” -Lost

You know what did it for me? I just pretended the ball was a puck, then I suddenly realized just how much “quality” was going on in the game.

#43 Karma on 06.16.18 at 8:55 pm

Ahh, an England supporter. My sympathies. But optimism is an important trait in money managers!

#44 For those about to flop... on 06.16.18 at 9:07 pm

“Eastside sucks!”

Said the guy with no seat on his bicycle.

Let’s have a look at what is happening on the bottom of the Westside.

A livable detached for 1.5m

Preposterous,some might say.

This house at 836 w 66th is on the market for 1.5million and if you look at the rew photos,it would appear someone is living there in reasonable conditions.

Just one more point if I may,I am only a volunteer real estate reporter,I am a b-grade construction worker who takes what he sees and crafts it into posts for the benefit of people of this city.

I also am trying to raise money for the Terry Fox Foundation,something I decided to do after finding out my father is dying of cancer in Australia.

I am not close to my father,but I do not wish my mother to be widowed one more day than necessary, and I do not want to see anyone watch a loved one suffer more than necessary.

Having used the word necessary a couple of times ,to the guys on the blog that like to come after me all the time,before you hit the submit button next time,maybe ask yourself…

Is it necessary…

M43BC

https://www.zolo.ca/vancouver-real-estate/836-w-66th-avenue

https://www.rew.ca/properties/R2229896/836-w-66th-avenue-vancouver-bc

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

Feel free to make a donation.

Flop For Fox Fund…

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

#45 X on 06.16.18 at 9:16 pm

‘I also assume that the Leafs will win the Stanley Cup every year’ Doug Rowat

I like the glass half full attitude.

#46 Unhinged Trader on 06.16.18 at 9:24 pm

Quality cat post.

Beats the schizophrenic rantings of the dog-lover in chief.

#47 crowdedelevatorfartz on 06.16.18 at 9:30 pm

@#21 Screwed Canadian Milksop
“Boy oh boy I’m not seeing much here about HIGHER WAGES FOR WORKERS…..”
+++++
The rich Boomers dont care…….mooo hooo haaa haaa haaaaaaaaaaaaaaaaaaaaa

#48 crowdedelevatorfartz on 06.16.18 at 9:37 pm

@ Floppie

Since the Pink Pollen falling seems to be White Cottonwood blowing……..
Can we give a Lower Mainland “shout out” to the White Cottonwood endlessly meandering all over Hell’s Half Acre aka The Lower Brainland’?

“The answer my friend…. is blowing in the wind….the answer is blowin in the wiiiiiiind.

#49 crowdedelevatorfartz on 06.16.18 at 9:41 pm

My annointed team( Costa Rica….The Rich Coast) is playing tomorrow.

Trivia answered.

Costa Rica…..3rd from the bottom in Doug’s list……

:(

#50 TurnerNation on 06.16.18 at 9:57 pm

50th? This craft-brewed, artfully seasoned, locavore weblog often has me scurrying to either Black’s Law Dictionary or to UrbanDictionary site (NSFW!).

As the other Gartho sang:

“Cause I’ve got friends in low places
Where the whiskey drowns
And the beer chases my blues away
And I’ll be okay
I’m not big on social graces
Think I’ll slip on down to the oasis
Oh, I’ve got friends in low places”

#51 NoName on 06.16.18 at 10:39 pm

interesting read

German authors during this period wrote ceaselessly. Around 14,000 new publications appeared in a single year in 1843. Measured against population numbers at the time, this reaches nearly today’s level. And although novels were published as well, the majority of the works were academic papers.

The situation in England was very different. “For the period of the Enlightenment and bourgeois emancipation, we see deplorable progress in Great Britain,” Höffner states.

Equally Developed Industrial Nation

Indeed, only 1,000 new works appeared annually in England at that time — 10 times fewer than in Germany — and this was not without consequences. Höffner believes it was the chronically weak book market that caused England, the colonial power, to fritter away its head start within the span of a century, while the underdeveloped agrarian state of Germany caught up rapidly, becoming an equally developed industrial nation by 1900.

http://www.spiegel.de/international/zeitgeist/no-copyright-law-the-real-reason-for-germany-s-industrial-expansion-a-710976.html

#52 Canada Goose on 06.16.18 at 11:12 pm

They had a good turnaround in profits. and price went up substantially. I went to their website of quality products, and the sale is on across the board for about 68% off on everything.

#53 Kikuyu on 06.16.18 at 11:34 pm

Haha I didn’t even realize Italy did not qualify! Always learn something new from the Greater Fool!

#54 Doug Rowat on 06.17.18 at 12:30 am

#36 Doghouse Dweller on 06.16.18 at 8:14 pm

2% vs 1.3% Whatever ! The yield vs risk is pathetic ! Up 15% from cheap loans and stock buybacks which should be illegal.

Virtually every S&P 500 company has bought back stock at some point in their history including many of the companies in VOX, which you seem to hate but still own. And they’ve bought back stock to the tune of US$564 billion in just the past year.

Complaining about the legality of it is like thinking shaking your fist at the drivers doing more than 100 km/h on the 401 is going to make a difference.

–Doug

#55 DAVID L TINDALL on 06.17.18 at 12:43 am

I am really disgusted that you would include the football info with the massive ripoff by the rich. Good way to deflect people’s minds with what is going on.
So senior executives give themselves lots of options, Trump lowers tax rates and dividends are raised and stock prices go up so options are now in the money. The corporations are stripped of their funds with the buy backs that help to raise stock prices and the rich walk away with the money . The employees get nothing but possibly layoffs per Sears bankruptcy. What we need is a real revolution but this won’t happen as long as people spend their time concerned about sports matters rather examining how they are being screwed.

#56 Fake News Again on 06.17.18 at 1:02 am

crowdedelevatorfartz on 06.16.18 at 9:30 pm
@#21 Screwed Canadian Milksop
“Boy oh boy I’m not seeing much here about HIGHER WAGES FOR WORKERS…..”
+++++
The rich Boomers dont care…….mooo hooo haaa haaa haaaaaaaaaaaaaaaaaaaaa

_____

Oh….you mean retired Govt Workers? Not for much longer. People world wide are getting collectively sick and tired of GOVT stealing every penny they earn so they can retire from their meaningless useless life in Govt only to retire on the Taxpayers dime.

#57 Smoking Man on 06.17.18 at 1:02 am

Son number 1 love him.
https://youtu.be/R3iX0SUQpPg

Son2 we are at odds at this moment in time.

Son 3. He’s my clone, 6’4 with hair. The world is his if he listens to his nuts.

I love life. In spite of the fact that life hates me. I’m cool with it. I’m a capitalist.

#58 NoName on 06.17.18 at 1:10 am

very interesting read

https://www.axios.com/china-belt-and-road-world-power-grid-cyber-silk-road-1a7c9ecc-14ff-4124-8f2c-862a371f88eb.html

and this
https://www.axios.com/china-debt-africa-djibouti-kenya-angola-belt-and-road-initiative-c65b82fa-48a6-4140-bb01-bc19580a16c9.html

#59 Smoking Man on 06.17.18 at 1:16 am

Roger waters can kiss my ass. My hero can’t see the truth. He must have stoped drinking.

https://youtu.be/qUmUiofIrmA

#60 Dolce Vita on 06.17.18 at 1:57 am

As a sore loser Azzurri tifoso, all I want to see in the World Cup is this result on June 23rd:

Deutschland 10 – Sverige 0.

That would make me happy.

And a few Sverige red cards during the match, say 11, would make me even happier.

Sverige football luck sucks should stick to ice hockey.

___________________________

Still too early in the tournament and with other groups yet to play but Spain and Portugal looked very, very good in their match.

If Ronaldo keeps being on, look out…he is a 1 man wrecking crew.

If so, Portugal in the final.

Argentina, with some of the top scoring European league strikers, were a disappointment in their match with Iceland, yet another Nordic luck suck team.

#61 mousey on 06.17.18 at 2:49 am

World Cup tournament started June 14/18 with Saudi Arabia -0 and Russia-5. Many good games since then. Huge game this morning with Iceland hanging on to a 1:1 draw with heavyweight Argentina. Portugal/Spain in an epic battle yesterday with CR7 rampant with a hat trick – but alas he didn’t take the shirt off to share the six pack.

#62 Gravy Train on 06.17.18 at 7:45 am

#57 Smoking Man on 06.17.18 at 1:02 am
“I’m a capitalist.”

What are you talking about? You rant and rave against capitalism on a weekly, if not daily, basis! Do you even own any liquid or capital assets? Oh—and when I say liquid assets—I don’t mean cases of Jack Daniel’s! :)

#63 dharma bum on 06.17.18 at 8:02 am

“…and there’s a high likelihood that if companies raise dividends, equity markets will move higher.” – Doug
——————————————————————–

Of course. (Blog)dogs like to poop where there’s already a big pile.

#64 Gravy Train on 06.17.18 at 8:14 am

#56 Fake News Again on 06.17.18 at 1:02 am
“People worldwide are getting … sick and tired of [government workers] stealing every penny they earn so they can retire from their meaningless useless [lives] … only to retire on the [taxpayers’] dime.”

I’ve said this before, but I’ll say it again!

Which government workers are living meaningless, useless lives? Firefighters? Police officers? Judges? Paramedics? Nurses? Doctors? Soldiers? Teachers? Librarians? Bus drivers? Urban planners? Waste collectors? Park rangers? And so on! And so forth!

Are you saying you’ve never been in a school, a hospital, a library, a park, or a bus, you genius baby?

As Garth said the other day, you are tedious and usually worthless! :)

#65 crowdedelevatorfartz on 06.17.18 at 8:22 am

@#53 Kikuyu
“Haha I didn’t even realize Italy did not qualify!”

+++++

They’re too busy holding federal elections.

************************

@#56 Fake News
” Oh….you mean retired Govt Workers?’
++++++
Well, now that you mention it……… :)

#66 Linda on 06.17.18 at 8:29 am

Doug, what is your take on the Financial Post article calling the corporate buy back a potential credit bubble that may trigger another recession? The argument as per the article is that corporate buy backs are not being used to expand companies but only to increase dividend payments & that the companies are using cheap credit to help finance these buy backs. Thus rising interest rates would have an impact. In addition, the claim is being made that corporate bonds are increasingly risky due to their having been ‘bundled’ – a reprise of the mortgage bond aspect of the credit crisis where the bundled bonds were given AA or AAA ratings despite being heavily salted with high risk securities. Thoughts?

#67 Felix on 06.17.18 at 8:47 am

Good pic, Doug.

See Garth, it’s not so hard to take a break from all the ANTI-FELINE RACISM!!!!

Try it sometime…..

#68 KLNR on 06.17.18 at 9:21 am

Go Iceland!
Although Germany looks like the team to beat as usual.

Oh, and Stan, get some help dude.

#69 For those about to flop... on 06.17.18 at 9:50 am

For those who missed it ,or are now a little bit more interested that the tournament is underway,here is the Greaterfool pool for the tournament.

Winner gets to spend a night in a former BMO bank vault…

M43BC

Group A:

Russia, Garth Turner

Uruguay,Waiting on the westcoast.

Egypt,Bitcoinaire.

Saudi Arabia,Shawn Allen.

Group B:

Portugal,Ronaldo.

Spain,Fake News Again.

Iran ,Washed Up Lawyer.

Morocco ,Smartalox.

Group C:

France,Ryan Lewenza.(InfLewenza)

Peru,TurnerNation

Denmark,Screwed Canadian Millennial

Australia,For those about to flop…

Group D:

Argentina,crossbordershopper

Croatia,NoName.

Iceland, IHCTD9.

Nigeria,Smoking Man.

Group E:

Brazil,Keith in Rio.

Switzerland, Doug Rowat(Robax)

Costa Rica ,Crowdie.

Serbia,Long Branch Apprentice.

Group F:

Germany,Common Sense.

Mexico,Trumpocalypse.

Sweden,Nonplused.

South Korea,Jaguar.

Group G:

Belgium ,Mark.

England ,Ace Goodheart.

Tunisia, Leo Trollstoy.

Panama,Penny Henny.

Group H:

Poland ,Dorothy Turner.

Colombia,Stan Brooks.

Senegal,MF.

Japan,LP.

#70 Doghouse Dweller on 06.17.18 at 10:25 am

#54 Doug Rowat
the companies in VOX, which you seem to hate but still own.
———————————————————————–
Thanks for the replies, Well I just found out what was going on with the tele-com dividend index on Friday, when I was researching why the sector was doing so poorly.
With all the data rate cellphone app zombies running around you would
expect them to be making money and pay good dividends.
Rest assured it will be overboard on Monday.

No-body has to ride the road rage financial 401 or play in the Bay street traffic, especially retirees..

#71 Pay Attention on 06.17.18 at 11:33 am

#67 Felix – Look carefully at the picture because that cat looks twisted and ugly. It won’t be coming into my residence anytime soon.

#72 conan on 06.17.18 at 11:51 am

In addition, the claim is being made that corporate bonds are increasingly risky due to their having been ‘bundled’
– Linda

I heard word of this months ago, primarily with developing countries. It is not so much that they are being bundled, more so that they are being purchased unwittingly, through indexed investment vehicles.

Managed fund: I am not buying this crap!

Index fund: welcome aboard!

#73 Mr Happy on 06.17.18 at 12:06 pm

You are betting $100 on England? I’ll take that bet…

And what is with the cat?????

Expect a stern talking to from Garth on Monday!

#74 Fake News Again on 06.17.18 at 12:41 pm

Gravy Train on 06.17.18 at 8:14 am
#56 Fake News Again on 06.17.18 at 1:02 am
“People worldwide are getting … sick and tired of [government workers] stealing every penny they earn so they can retire from their meaningless useless [lives] … only to retire on the [taxpayers’] dime.”

I’ve said this before, but I’ll say it again!

Which government workers are living meaningless, useless lives? Firefighters? Police officers? Judges? Paramedics? Nurses? Doctors? Soldiers? Teachers? Librarians? Bus drivers? Urban planners? Waste collectors? Park rangers? And so on! And so forth!

Are you saying you’ve never been in a school, a hospital, a library, a park, or a bus, you genius baby?

As Garth said the other day, you are tedious and usually worthless! :)

_______

The said group you mentioned….make up less than 10% of Govt workers. Most are like you…..desk jockeys pushing pens that circle jerk around and get nothing done. There are countless studies of waste in Govt. CanaDUHHHH has 3 levels of useless Govt that often times triplicate work. The list of waste is endless. Thanks for allowing me to point this out……Mr Govt Gravy Train.

BTW …..my wife is a healthcare worker. You know…the ones you like to CHERRY PICK? And she will be the first one to tell you how USELESS most people are in the hospital……

#75 Lost...but not leased on 06.17.18 at 12:41 pm

#51 NoName

Good post..

“ALL WARS ARE BANKERS WARS”..to be applied to the deep state analysis or each and every war.

Germany became a nation in the late 1800’s and became an ECONOMIC threat to Britain and its empire as was Russia under the Czar. By this point the USA , via Spanish American war, had begun its own Imperialist actions, which in WW1 and WW2 manifested effectively as Britain military pit bull lap dog.

NYC bankers agenda was to spread Communism in Europe, funding Lenin and Trotsky with $20 million as well as revolutionaries trained in New Jersey. Russia was effectively done by WW1, taken over by Bolsheviks and Czars assassination.

WW1 and Germany?….As part of Germanys economic expansion, it was resource poor and was beginning to access oil reserves in the Turkey area. This required expansion of railway. Archduke Ferdinand visit to the area resulted in his assassination, which ultimately resulted in WW1, and of course prevented Germany access to oil….which as the bankers aim all along.

What people fail to realize is the NYC bankers original goal was to take out ALL OF EUROPE during the Bolshevik Revolution..it took WW1 and WW2 to solidify Communism in Russia( and later China etc), and break up the German threat..using Stalinesque communism(brute military force). Stalin Communism realized wars to to galvanize nations and create strong resistance.

Since then, we have had the bogus Cold War and Trotsky style Communism…which is infiltration from within…Trojan Horse….”the slow march through the institutions”….ir universities, religions, etc.
ie do people seriously think Womens Rights, or multi -culturalism was about equality insofar as the powers that be are concerned?

As Marx stated..a strong Central Bank is key to the Communist platform.

US General Smedley Butler wrote a book “War is a Racket”, realizing most,if not all wars are to benefit multi-national corporations.

Any one with even remote critical thinking skills will realize “they” are succeeding at a pace that even amazes the communists.

#76 @careeraftschool on 06.17.18 at 12:56 pm

I never understood why companies buy back their shares when they are near 52 week highs but issue a bunch of stock when the stock’s at a multi year low and the economy is in a recession?

I think it’s because they are run by managers and not owners. Owners think long term and buy assets when they are cheap. Quarterly guidance and short term incentives suck! I should put that on a T shirt.

#77 NoName on 06.17.18 at 12:58 pm

another table on WC2018 from 538.

https://projects.fivethirtyeight.com/2018-world-cup-predictions/?ex_cid=endlink

#78 crowdedelevatorfartz on 06.17.18 at 12:59 pm

@#64 Gravy Train.
“Are you saying you’ve never been in a school, a hospital, a library, a park, or a bus.
+++++

Please.
Education and Health care suck up 80% or more of every province’s budgets…80%.
Which leaves 20% for you beloved, police, garbage, parks, etc etc etc.

Public Schools
Most upper middle class parents will place their kids in private schools in a heartbeat. We wont even talk about the monthly “Pro D daze”, the 2 months off in the Summer, the 2 weeks off a Christmas, the two weeks off at Spring “Break” with salaries pushing 70k
Cry me a river.
Health care.
The endless waits for doctors, months long waits for consultations with “specialists”, multiple visits to renew prescriptions, padding “billable hours” has reached a new art form. And if you’re unlucky enough to be sent to a hospital, filthy halls and rooms, food that a dog would refuse, crowded halls and rooms.

The military, suing for PTSD, suing for injuries, suing for sexual harassment, on and on and on.
Newsflash soldier, “You’re in the army with other young men and women. You may go to war. People get shot, injured and killed…..”

Library? An anachronism that the internet has rendered obsolete

Parks. Cut the grass, issue tickets for dog poop. The private sector could do it all much cheaper.

Bus. Same as parks, Privatize it back to the way most public transit was 50 years ago. Private entrepreneurs who built up successful bus lines and then were bought out by govt.

No Gravy Train ( or should I call you Public Pensioned Unionized Worker which is essentially a Gravy Train) the private sector has proven again and again and again that they can do 99% of the same jobs cheaper, faster with infinitely better service.

#79 baloney Sandwitch on 06.17.18 at 1:50 pm

Much more corporate money is going into stock buybacks than into divy’s in the US. Reason: executive stock options. That is why I am selling put options on US blue chips. Its been a winning strategy for the last 5 years and will continue for at least another year.

#80 Reynolds531 on 06.17.18 at 2:06 pm

#78

I think you can boil it down to this $96k a year for a high school teacher is a fortune. When middle class private sector wages have stagnated for 20 years…. it’s far too much.

#81 Things Are Changing on 06.17.18 at 2:22 pm

The solution to this all is using simple logic and common sense. In order to leave the negative aspects of life behind – you must change your values – but not necessarily giving up your quality of life. Much has been said about getting a good paying job, but what does this really mean? Its the net left over after taxation and cost of living that is important. A home is just a place to live. Why pay $1 million when the same home elsewhere only costs $250,000? Perhaps, its time to move elsewhere and live the good life. Those that can sell with tax free dollars can buy a home for cash, and with trade skills, education, knowledge, or special certifications that are needed, you will have no problem earning a good living.

#82 Doghouse Dweller on 06.17.18 at 2:33 pm

#76 @careeraftschool
The buybacks fill the pockets of the management who are paid with excessive salaries and stock options.. The Owners (shareholders) get the 1.36% dividend table scraps.To profit you must cease ownership. Buy low Sell high.
The skyward graphs are telling you now is high.

#83 Stan Brooks on 06.17.18 at 2:52 pm

What did I say earlier today?


#4 Stan Brooks on 06.16.18 at 3:27 pm
Spain has much deeper and better quality team than Germany.

I like Germany but it depends a lot on the goalkeeper just coming out from a long injury and midfielder Toni Croos and is in rather uneasy group.

They will have very difficult game with Mexico.

Germany – Mexico 0-1

Not very stable Neuer, Croos hitting the crossbar, difficult game for Germany, as I expected.

So Germany are not the big favorite any more. Watch their game with Sweden.

As usual I am probably mostly wasting my time here with socker/football insider news, as with economy/business free giveaways.

Cheers,

#84 Long-Time Lurker on 06.17.18 at 2:53 pm

Not bad, Doug. Could use more beard, though.

#85 TurnerNation on 06.17.18 at 2:53 pm

#55 DAVID yep our Elite rulers are roaring with laughter now. They’ve got us looping in a nihilistic feedback loop.
So many on social media virtue signalling with “tribute” to some dead celeb chef I’d barely heard of . He cooks food (me too), and pumps a book.

How about that local heart surgeon which saved 5 lives this month. And last month. And the month before. The one T2 and the Globalists wish to tax out of the country.
Cuba here we come. Like father like…

#86 Glengarry Girl on 06.17.18 at 3:14 pm

#21 SCM and #55 David

I’m also disgusted by this obscene money grab for the already privileged. I won’t be celebrating Trump’s Tax Reform, as I see it clearly for what it is. We are all going to pay a huge price for this Greed.

#87 Gravy Train on 06.17.18 at 3:17 pm

#78 crowdedelevator on 06.17.18 at 12:59 pm
“No Gravy Train (or should I call you Public Pensioned Unionized Worker which is essentially a Gravy Train?) the private sector has proven again and again and again that they can do 99% of the same jobs cheaper, faster with infinitely better service.”

The private sector has no incentive to provide public goods, as such goods are non-excludable and non-rivalrous.
https://en.m.wikipedia.org/wiki/Public_good
https://en.m.wikipedia.org/wiki/Excludability
https://en.m.wikipedia.org/wiki/Rivalry_(economics)
https://en.m.wikipedia.org/wiki/Free-rider_problem

I’m not a public servant or unionized worker, Communist, or statist thug, as I’ve been referred to here in the steerage section. I’m a retired accountant. But don’t you let facts get in the way of a good story! :)

#88 N. Korean Agreement on 06.17.18 at 3:29 pm

The Japanese Foreign Minister, Taro Kono, who saw the agreement beforehand just made the statement that 47 demands were made by the USA. What you saw was all smoke and mirrors performed by the Beast or a hoax when all is said and done – no deal!

#89 Mexico Won on 06.17.18 at 3:49 pm

They sent Germany packing, and the stamping of feet and the roar from the crowds caused the City of Mexico systems to detect a minor earthquake was afoot.

#90 NoName on 06.17.18 at 3:58 pm

#79 baloney Sandwitch on 06.17.18 at 1:50 pm
Much more corporate money is going into stock buybacks than into divy’s in the US. Reason: executive stock options. That is why I am selling put options on US blue chips. Its been a winning strategy for the last 5 years and will continue for at least another year.

—-

Dude you are my hero !!!

#91 Yuus bin Haad on 06.17.18 at 4:31 pm

Oh, good – the haters are back.

#92 Accountant on 06.17.18 at 4:50 pm

#87 Gravy Train – In my walk through life have had dealings with dozens of accountants. I personally rate their integrity between a used car salesman and a person selling Real Estate.

#93 Gravy Train on 06.17.18 at 6:26 pm

#92 Accountant on 06.17.18 at 4:50 pm
“In my walk through life have had dealings with dozens of accountants. I personally rate their integrity between a used car salesman and a person selling Real Estate.”

Ad hominem attacks are a fallacious argumentative strategy—but I’m sure you already knew that! :)

#94 bobby13 on 06.17.18 at 7:57 pm

Share buybacks!!! stores closing, debt surging trade wars ensuing yup things are going great, protect “fudge” equities and bond market at all costs.

#95 Linda on 06.17.18 at 8:58 pm

Ah, the beloved ‘but the private sector can do it cheaper’ argument.

Repeat after me: the goal of business is TO MAKE A PROFIT. Not a loss, not break even, a profit. How is this done? By charging what the market will bear & a little more if you can manage it.

Contracting out follows a general path: First, the public service being replaced is opened for bids. Depending on the type of work being moved from public to private, bids can & often do come under the cost that is attributed from providing the service publicly. The reason is that all possible costs including pension & health care benefits are included in the workup of the cost under the public service. Second, depending on the estimated future profit to be reaped the private sector bids. Frequently, the work is under bid in order to secure that future plum for the harvest. Third, the service is contracted out. Frequently this results in less service than was provided by the much maligned public service sector. The contractor generally pays their work force as little as possible & usually that workforce does not have pension benefits (other than CPP) or a health care plan to pad the cost to benefit analysis. Fourth, the contractor usually does not bid on the work that would cost them money – those little, inconvenient, costly jobs that ran the cost up. Maybe the contractor will have to include that work, but then the work will either be delayed, done poorly or neglected for various business related reasons. More complaints – to the government for work not done, NOT to the contractor who got the contract to do the work. When complainant is told to contact the provider of the service, complainers then complain about ‘lack of government service’ & ‘what do we pay these people for anyway.

Next way for contractor to make a profit – fail to maintain the infrastructure. All too frequently public infrastructure is turned over in pristine, up to date condition. A few years later, a mess – & either the taxpayer ponies up the huge cost for a full replacement (SCORE!!!) or the infrastructure is turned back over to the government, who then has to fix it at huge cost to the taxpayer. Meanwhile, the contractor pockets the profits from not maintaining that pesky infrastructure. Lastly, the original low bid contract ends. A new contract is put out for bid. Guess what the bids come in at? Time to collect those deferred profits – SCORE!!! Taxpayers then shriek bloody murder at their property taxes/utility bills soar to cover the true cost of maintaining that service they thought they would get for less…..

#96 Tony on 06.17.18 at 10:39 pm

Re: #90 NoName on 06.17.18 at 3:58 pm

Remember what eventually happened to all the suckers who shorted the volatility index? Play the options not the futures. The futures will eventually wipe you out completely.

#97 Llama Man on 06.18.18 at 8:27 am

Hey Doug, thanks for including some sports-related tidbit in here. It’s a breath of fresh air!

I’d like to see the odds now that Mexico handed Germany a loss!

#98 Austruck on 06.19.18 at 12:27 am

What’s the debt increase of companies in a comparable chart? My bet is a large amount of the so called cash you say exists is additional debt taken on to finance the buybacks