Illiterate

DOUG By Guest Blogger Doug Rowat

Are you financially literate?

According to FINRA, a US investment-industry regulator and educator, almost two-thirds of Americans can’t pass a six-question financial literacy test. These questions are general, “covering aspects of economics and finance encountered in everyday life, such as compound interest, inflation, principles relating to risk and diversification, the relationship between bond prices and interest rates, and the impact that a shorter term can have on total interest payments over the life of a mortgage”. The toughest question for most is the bond question as just 28% of respondents know what happens to bond prices when interest rates fall. (I won’t spoil it for you—take the quiz at the end.)

Now, in fairness, if you asked me six general questions about, say, medicine, I would probably struggle, but that’s why I see a doctor. What’s more stunning about the results is that investors have become LESS financially literate since the financial crisis as the percentage of respondents correctly answering three or fewer questions has steadily risen. So, it’s not only that the average person doesn’t perform well on the test; it’s that they’re also performing worse over time.

Level of US consumer financial knowledge and decision-making

Source: FINRA

So, you can imagine that with such widespread financial illiteracy, truly understanding market risk and controlling emotion during market downturns would be highly problematic for most investors. If you don’t understand the basic mechanics of bond pricing, you’re probably not going to understand equity market volatility either and are unlikely to keep your cool when equity markets plunge.

Your own lack of market knowledge is certainly one reason to consider a financial advisor, but avoiding emotional overload during weak markets is definitely another. An advisor, if he or she is to be of any use, has lived through a bear market or two, understands that bear markets don’t last and can minimize the chances that you’ll sell when stocks fall. Once the decision has been made to sell, which in and of itself is probably the incorrect decision, the odds of an inexperienced investor re-entering the market at the appropriate time are basically zero. It’s much more probable that an investor’s fear will persist until markets have rallied substantially. Simply put, fear = missing the boat.

A simple way to illustrate this is to compare the Cboe Volatility Index (VIX) to the S&P 500. The VIX is often referred to as the ‘fear index’ and it should come as no surprise that when elevated VIX levels finally subside, much of the recovery rally in the S&P 500 has already taken place (see chart below). In other words, substantial upside is wasted while inexperienced investors wait to ‘feel’ better about markets. A good financial advisor can help you face your fear and hopefully make you some dough in the process.

The VIX (white line) and S&P 500 (orange) tend to move in opposition – waiting for volatility (read:fear) to subside before investing is a losing strategy

Source: Bloomberg

But an advisor can only do so much. It’s also important to maintain a balanced and globally diversified portfolio to help control volatility and, by extension, your emotion. Legendary investor and market historian Peter Bernstein summed it up best in his short, but highly influential, 2002 article “The 60/40 Solution”:

When [equity markets] are cascading downward, keeping one’s cool is almost impossible…. Even if we could imagine a person blessed with sufficient longevity to have been active in the market ever since 1925, how likely would it be that even the most experienced and sophisticated investor would have the self-control to stay 100 percent in stocks, without trading in and out as the market rode up and down its roller coaster? I know I could not have been so calm through depressions, inflations, banking and currency crises, wars and political disruptions.

Mr. Bernstein died in 2009, but consider how apt his observations are when we look at more recent market events. Could you have maintained a volatile, equity-only portfolio in the face of the Bear Stearns and Lehman Brothers collapse during the 2008–09 global financial crisis with equity markets sometimes plunging 9% in a single day? Held on to your Canadian bank stocks throughout the same period when analysts were regularly debating whether Canadian banks would have to cut their dividends for the first time in modern history? Or maintained your cool in the face of a CNBC report that asked during the European sovereign debt crisis “Is the Stock Market Dead?” when it seemed certain that Greece was going to pull out of the European Union and send the world into another devastating recession?

When invested in an equity-only portfolio, we can’t be trusted to make carefully considered investment decisions. We need multiple asset classes in our portfolios in addition to equities, such as bonds, cash, or preferred shares, to control risk, which, in turn, will prevent us from becoming consumed with fear and making poor investment decisions.

So, if you don’t currently have a balanced portfolio, and you also take that FINRA test and it turns out that you know as much about investing as Trump does about distinguishing between ‘would’ and ‘wouldn’t’, get help. You need it.

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

 

83 comments ↓

#1 Stock picker on 07.28.18 at 3:57 pm

Hi Doug, what do you think of the Connelly report?

#2 Pooh bear on 07.28.18 at 3:59 pm

Hi Doug, what do u think of the Connelly report?

#3 Rick on 07.28.18 at 4:01 pm

I’ve been invested in the markets for only 30 years. I can honestly say, that during that time I’ve been 100% invested in the market. I still am, even in retirement.

#4 Stone on 07.28.18 at 4:03 pm

6/6 correct. That was easy. But then, I have a 7 figure portfolio, balanced and globally diversified.

Is financially literacy alone the problem or literacy in general? That may be the bigger question.

#5 dakkie on 07.28.18 at 4:27 pm

Housing Market Collapse 2.0 Accelerates Rapidly!

http://www.investmentwatchblog.com/housing-market-collapse-2-0-accelerates-rapidly/

#6 BobC on 07.28.18 at 4:29 pm

Any 8th grader should be able to answer those. Are the schools that bad really?
I’m sending a link to all 6 of my kids and 7 of my grandkids that are 15 and older.

#7 georgist on 07.28.18 at 4:35 pm

That quiz isn’t hard, but neither is embedding a URL!

I can see how many wouldn’t know the bond question, there’s implicit knowledge there. The rest require basic maths.

What can we expect since we moved to full-on capitalism from the social democracy of the 1960s?

People will look at the compound interest question and ask themselves “how can people not work this out”. It simply requires a little extrapolation.

But those same people seem unwilling to extrapolate on financialised countries going from being wealthy to near collapse.

Tax land, not labour and it gets better.

Keep rewarding rentiers wealth appropriation over wealth creation and it keeps on getting worse.

#8 Canada is beautiful on 07.28.18 at 4:45 pm

You have to love Canada. I know I do. I wonder if I can work it for a free 2 week vacation…….

https://youtu.be/mVKXJx_G_uU

#9 Zapstrap on 07.28.18 at 5:19 pm

A friend of mine always says … “buy your weaknesses.” Hire someone …

#10 FOUR FINGERS WATSON on 07.28.18 at 5:19 pm

Q. If bond prices fall in the forest and there is no one around to hear it does it still make a noise ?
A. Doesn’t matter cuz they are lying to you anyways.

Anyone who is financially literate doesn’t believe government numbers or anything they tell you. Like numbers about inflation…..

#11 TurnerNation on 07.28.18 at 5:25 pm

The play for Aug. is SQQQ imo. Shots fired across the bow.

I wonder if likely Russian-Canadian Anyovit Onya will be dropping by this blog tonight.
As in, You spilled your beer. Did you get Anyovit Onya?

#12 FOUR FINGERS WATSON on 07.28.18 at 5:29 pm

According to FINRA, a US investment-industry regulator and educator, almost two-thirds of Americans can’t pass a six-question financial literacy test.
………………………………

Those assh-les can’t even figure out what the rate of inflation is. Who is illiterate, them or us ?

#13 The Real Mark on 07.28.18 at 5:49 pm

It has proven time and time again that financial literacy peaked in 2013 when every smart person sold their home. It is only because of the question mix do people think they are more financially literate. To think otherwise is a rookie mistake.

#14 The Real Mark's Mom on 07.28.18 at 5:50 pm

Time for dinner Chris.

#15 The Real Mark on 07.28.18 at 6:08 pm

Met a pipeline retiree a few years back. Did well in his career, had his house paid off, but a divorce and a love of the bottle didn’t leave him with a lot of retirement money aside from OAS/CPP and a small-ish DB payment. A real wizard with mechanical equipment, could fix practically anything.

Unfortunately, in the mid 2000s, after his retirement, he got into the habit of watching BNN. His mind being filled with stupid BNN-isms and jargon (like ‘baggers’) which no real investment professionals actually use in real life, but BNN “guests” use to create the aura of legitimacy and sophistication.

Armed with all this confidence and filled with the sales pitch, the guy mortgaged his paid-off house to the hilt, and put it all into small-cap resource stocks. He did well initially, but after the 2008 crash, his portfolio was reduced to rubble. What was a modest secured retirement with a paid off principal residence, an OAS/CPP/pension cheque, is now several hundred $k of debt, and an empty portfolio.

A really sad story. He’s had to take up freelance mechanical work to keep his mind off of things and in an attempt to pay things down. I send him as much work as I can on the projects that I do, but its a really good lesson on how important it is not to get carried away with an investing theme. And for the love of whatever deity one worships, don’t watch TV shows in which the interests of the guests are most certainly not aligned with yours. Or really, even watch TV at all these days since most of it is fake news.

#16 crowdedelevatorfartz on 07.28.18 at 6:10 pm

Interesting results in that financial literacy quiz.
6 out of 6 for me but the result for each state were telling.
Most of the Midwest states and Maine, Vermont scored well.
Southern states( Florida, Texas, Cali, etc) did poorly.
New York, Washington, etc did poorly.

Frightening that such a simple financial test is so difficult for the majority.
I guess thats why , banks, lending companies, credit card co’s etc do so well…..
The old adage “A (greater) fool and their money are soon parted”

#17 Reality is stark on 07.28.18 at 6:17 pm

It’s all about discipline and being a contrarian. Just because the societal pressure exists to marry, it’s usually a poor business decision.
You are far better off to work 50 hours a week and then put 30 hours per week into your principal residence and partying Friday and Saturday nights as a life strategy. It’s been guaranteed wealth and it’s easy but who has the fortitude to do it.
By 45 you stop working and other people pay you.
You can lead a horse to water but you can’t make it drink.
It seems most people would rather just be unhappy.
The rate of anxiety medication prescriptions has skyrocketed.
As a man you don’t need to make yourself sick.

#18 Linda on 07.28.18 at 6:28 pm

Took the test & got 6 out of 6 correct. However I did work in finance & of course have been reading this blog, so the test was very easy for me.

What horrifies me is that so many would not be able to pass the test & that test results have gotten worse over the years. With the exception of the bond question, all the other questions should be slam dunks for anyone who can read & has basic math. Methinks we may have found the smoking gun for the widening gap between the rich & poor here…..

#19 Doug Rowat on 07.28.18 at 6:29 pm

#5 BobC on 07.28.18 at 4:29 pm

Any 8th grader should be able to answer those. Are the schools that bad really?

When he learned that 70% of Americans couldn’t find Germany on a map, comedian Harland Williams responded for America:

What about the 60% of us who can find it? And who cares about Germany after what they did to us at Pearl Harbor back in ’69.

–Doug

#20 Fluorine on 07.28.18 at 6:43 pm

6!

Not a huge surprise, given my hobby, but nice to know.
I wonder what questions were the ‘trickiest’ for most people?

#21 Long-Time Lurker on 07.28.18 at 7:01 pm

I looked at Flop’s site: Pink Snow.

https://pinksnow103480648.wordpress.com

Latest posts: $600k & $400k price cuts.

I’m guessing nothing’s moving on detached.

#22 Cdn Mom on 07.28.18 at 7:10 pm

6/6

The average is sad, but then my parents talked personal finance to us as kids, as I do with mine.

I get the 60/40, but I’m not sure we can all begin that way. We had squat to invest really, chance made us landlords. Capitaized on that cash flow to buy a second rental house. Took the substantial monthly cash flow from both to invest in equities, self-directed. When stocks dropped, bought more, didn’t panic. Borrowed from LOC 2 years ago to drop a chunk into spousal RRSP for income splitting/tax relief. It’s now at over 300% gain, LOC repaid. Sold one rental since market at peak (held it 6 years), invested that gain. In less than a month it made more than enough to cover cap gains tax due next spring, and is on its way to doubling.

Sometimes you need to work your way up the ladder before the security of 60/40. You have to be smart about it, maximize tax efficiency, educate yourself, and pay attention. And avoid pot stock. Healthcare tech is currently great, though.

#23 Tony on 07.28.18 at 7:11 pm

Re: #14 The Real Mark on 07.28.18 at 6:08 pm

All things equal with the declining birthrate worldwide and the laziness of the Millennial generation (lack of demand for anything tangible) anyone could have hypothesized that commodities would continue to move downward in price.

#24 NoOneOfConsequence on 07.28.18 at 7:16 pm

It’s all well and good to preach about ‘getting financial help’…the fact is that with less than $100K, investment firms can’t be bothered.
There’s the stark reality around investing…those of us who got smacked in the face by life (divorce lawyers) are forced into the arms of [email protected], or to follow web sites like Motley Fool.

#25 Tony on 07.28.18 at 7:19 pm

Re: #10 TurnerNation on 07.28.18 at 5:25 pm

September and October are too close to the midterm elections. August is a good possibility. A lot could still happen in the last two trading days of July.

#26 crowdedelevatorfartz on 07.28.18 at 7:23 pm

@#13 The Real Mark’s Mom

Whats for dinner?

#27 Doghouse Dweller on 07.28.18 at 7:24 pm

The Magnitsky Act ( The Evil Russian Documentary they don`t want you to see )
https://www.youtube.com/watch?v=njzZcdoLP6c

#28 Tony on 07.28.18 at 7:24 pm

Re: #10 TurnerNation on 07.28.18 at 5:25 pm

Shawn’s line about the NASDAQ going to 10,000?

#29 Westcdn on 07.28.18 at 7:31 pm

I try. I am down about 3% this year. It is not a surprise given the yield basis I bought into rather than speculating. I will hold course for now. I may buy more preferred shares but overall they seem priced for perfection today. My cowboy attitude is being tempered. I see company earnings ratio to share price seems to be falling. For me, it is a warning that asset prices are on the edge to fail. I think I have positioned myself well but time will tell.

The orange beast is proving our current leadership is gutless and only interested in getting re-elected. When I moved to Calgary 35 years ago, aldermen were part time. Now they are full time with generous pensions and paid staff. Tell me again how much they care about me – bring out the world’s smallest violin. The Olympic winter games looks like a fiasco to me but then Mayor Nenshsi has an idea to build infrastructure on the cheap. Make me silly but I have never seen a government project come in less than promised. At the end of the day, it is what TV revenues will bring in and that is what Calgary needs to play.

I don’t need increased property taxes for a failed idea. A personal complaint – I think firemen spent more time at the grocery store than fighting fires. A Fire Captain confessed to me – keep the fat ones out of sight.

#30 Sierts on 07.28.18 at 7:34 pm

Got one wrong. The bonds question. (which else could it be?)

I did not think about the influence of new bonds upon the existing bonds.

#31 NoName on 07.28.18 at 7:54 pm

Got 5 out of 6 correct, I was 410$ off on 6th question… Good thing it was not spelling test, or i would faill.

#32 NoName on 07.28.18 at 8:03 pm

#26 Doghouse Dweller on 07.28.18 at 7:24 pm
The Magnitsky Act ( The Evil Russian Documentary they don`t want you to see )
https://www.youtube.com/watch?v=njzZcdoLP6c

what are you lazy, even my wife found some time to finish a book (red notice), youtube pft…

#33 NoName on 07.28.18 at 8:09 pm

@ Doghouse Dweller

get this book

https://www.amazon.com/Cold-War-Hot-Peace-Ambassador/dp/0544716248

#34 Jacques Strappe on 07.28.18 at 8:41 pm

I got 6 out of 6, so I guess that means I can remain an all-equity cowboy for the rest of my life. Served me well so far.

#35 jas on 07.28.18 at 8:50 pm

Actually stock market investing is not meant for oneself but for your second generation (grand kids). And in that case one can go 100% stocks and leave it at that.
The problem is that in stock market investing, when one says ‘long’ term, they usually mean 10+ years (or may be 20+) but in reality that is not fair. In stock market, at least 30+ years should be considered long term.

#36 The Real Mark on 07.28.18 at 8:57 pm

#12, #13, personator, please get some help.

#37 Reynolds531 on 07.28.18 at 9:00 pm

I never sold a thing in 2008, just kept putting money in. But I said then and I say now if I had the balls I would have pulled 300k out on credit and bought BMO.

I’d be set.

#38 The Real Mark on 07.28.18 at 9:05 pm

“#22 Tony on 07.28.18 at 7:11 pm
anyone could have hypothesized that commodities would continue to move downward in price.”

Technology improvements can somewhat counterbalance productivity improvements in commodity extraction, but commodity production has substantial physical constraints relative to the ability of central bankers to print money. Hence, there’s a reasonable argument to be made over the long term that commodities, and miners of commodities should, over the long term, keep up with inflation and produce a return that is at least convergent with the long-run average of stock market returns. Perhaps with inverse correlation to other stocks, improving the risk/volatility position of a portfolio (sometimes called the portfolio’s Sharpe Ratio).

However, the problem with my elderly gentleman mechanic friend, who can, has, and does fix anything from a lawnmower engine to a massive RB211 or Trent turbine, is that he was falsely empowered with some questionable ‘information’ by a bunch of stock promoters on a sell-side stock TV channel, and took the bait. Now he has to live with the consequences. Its often better to literally know nothing, and know that you know nothing, than to know something, and to believe that you know everything. So failing the quiz as presented by Doug isn’t the end of the world — but you’re no expert even if you do pass the quiz!

#39 Nanaimo Nascent on 07.28.18 at 9:14 pm

#28 Westcdn on 07.28.18 at 7:31 pm

– I think firemen spent more time at the grocery store than fighting fires. A Fire Captain confessed to me – keep the fat ones out of sight.

———————–

I was up late on Wednesday, woken by the sirens attending the Robarts street fire. Watched it from my balcony as fire fighters battled it for hours. Everyone out safe, building totally destroyed, surrounding properties minimal damage. Easy to question fire fighting costs until you actually see what these folks do. Super heroes that get little recognition.

#40 Wrk.dover on 07.28.18 at 9:21 pm

As a Garth student, I got the bond one. The single stock/mutual loaded question was obvious what they wanted the answer to be, at the very least. The others were too easy with Grade 12 from Ontario 45 years ago. Can’t speak for present day curriculum.

All of the dawgs from this blog are going to up the average score on the test.

#41 akashic record on 07.28.18 at 9:36 pm

#32 NoName

This is a very different angel of the story from your book. Watch it and tell us what you think. It doesn’t exist as a book so you don’t have to blame yourself with laziness. Hurry up though, the link usually disappears quite fast.

#26 Doghouse Dweller on 07.28.18 at 7:24 pm
The Magnitsky Act ( The Evil Russian Documentary they don`t want you to see )

https://www.youtube.com/watch?v=njzZcdoLP6c

#42 Jungle on 07.28.18 at 9:44 pm

6 for me! No surprise really. But shocking how many of the general public fail.

#43 akashic record on 07.28.18 at 9:50 pm

#39 Wrk.dover on 07.28.18 at 9:21 pm

As a Garth student, I got the bond one. The single stock/mutual loaded question was obvious what they wanted the answer to be, at the very least. The others were too easy with Grade 12 from Ontario 45 years ago. Can’t speak for present day curriculum.

The compound interest saving/debt would be much more effective with large numbers.

Today, with 2% interest rate the gain on $100, whether it is $102 or plus some, makes the difference look meaningless to even spend time on thinking about it.
It might actually give the impression that saving is pointless.

#44 Doug Rowat on 07.28.18 at 10:16 pm

#34 jas on 07.28.18 at 8:50 pm

Actually stock market investing is not meant for oneself but for your second generation (grand kids). And in that case one can go 100% stocks and leave it at that.

If you look at an Andex chart, which compares long-term returns of different segments of the market, we’d all be best to just own US small-cap stocks. You can see for yourself:

https://www.assante.com/advisors/pmoore/documents/AndexWallCANENG.pdf

Alas, few of us could stand the volatility and most of us will need our investments in our own lifetimes.

–Doug

#45 Doghouse Dweller on 07.28.18 at 10:28 pm

#32 NoName
Did you watch the Documentary ?
https://www.youtube.com/watch?v=njzZcdoLP6c

It`s not the Victoria Nuland/Michael McFaul/Bill Browder/John McCain
version of events telegraphed ad nauseam.

#46 Oft deleted much maligned stock.picker on 07.28.18 at 10:54 pm

Massive Huge Public Health Announcement…..Don’t go in the poop thick water anywhere around Vancouver.

https://vancouversun.com/news/local-news/swimming-closed-at-vancouver-beaches-because-of-e-coli-ahead-of-fireworks

Bwahahahahaha….like locals don’t already know that English Bay and False Creek are thick with raw untreated human feces and toxic medical waste running strait out of hospital storm drains. Vancouver lost a court case almost 30 years ago and promised to clean up…it hasn’t.

A Suzuki study showed the 99% of all ground fish in the waters around Vanc-Denial showed pre-cancerous lesions due to discharges that include highly toxic heavy metals . Washington State has complained about finding Superbug strains strains on thier beaches traced back to Van-Sewer. So…..dog lover….don’t play fetch with Rover anywhere near Vancouver….likely kill him/her/they/zir/zi.

Yeah…..when you take your romantic walk along akits Point you’ll step over a rise on the sidewalk…..that’s one of the giant ten foot pipes that flood raw sewage into the bay. There are twelve outfalls into False Creek and boy does it stink at low tide in the summer…..can’t open a window of your $600,000 coffin box condo without puking. Check out video of another massive pipe outflow at the bottom of Mainstreet.

Yeah…..frolic on the beach Millennials….play volleyball ball…
.get sandy…..just make sure your immune system is topped up…..
Or else.

#47 Robbie on 07.28.18 at 11:07 pm

Well, I got 6 out of 6 and the questions seemed so obvious and easy. Average score is a little over 3. There are a lot of uneducated people out there!

#48 LP on 07.28.18 at 11:25 pm

#37 The Real Mark on 07.28.18 at 9:05 pm
“#22 Tony on 07.28.18 at 7:11 pm
Its often better to literally know nothing, and know that you know nothing, than to know something, and to believe that you know everything.
*************************************

Mark Twain said it best: “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

#49 Troy McClure on 07.29.18 at 12:26 am

2.81: Don’t Mess With Texas!!!

#50 Fish on 07.29.18 at 12:49 am

The photo, was it taken out front
of a senior activity centre?

if it was, I would think that the fine gentleman is a bit early, please remember

things don’t really get underway until October 17th

#51 Tested on 07.29.18 at 4:38 am

I took the test, and as you predicted got the bond question wrong.

All my other answers were correct though, so I don’t have to worry as I never held bonds.

#52 earthboundmisfit on 07.29.18 at 6:05 am

Unfair to pick on U.S. consumers. Low hanging fruit.

#53 SickAndTired on 07.29.18 at 9:17 am

6 out 0f 6 cause i’m so smart………..
on the other hand, i’m sick of the situation with all the illegal border crossings. My girlfriend is from a foreign country. She applied for a visitor visa the legal way. I gave her an invitation letter stating that I would pay for her trip, airfare, room, and all expenses backed up by copies of my financial statements. Our genius immigration department decided that she was a risk to canada because she did not have her own money to fund the trip and felt that she would overstay her welcome. Visa denied.
I think I’ll take my millions and move to her country where they welcome foreigners and live and let live…..

#54 akashic record on 07.29.18 at 9:49 am

While Doug Rowat on(the)line…

Doug, what do you think of this?

JPMorgan: QE Might Have Devastating Consequences After All

https://www.zerohedge.com/news/2018-07-28/jpmorgan-qe-might-have-devastating-consequences-after-all

1. Results in Asset Bubbles and a Collapse in CapEx
2. Creates Zombie Companies and Crushes Productivity.
3. Low Rates crush savers, make the rich richer.
4. Exacerbates currency wars
5. NIRP hurts the economy, and chokes off credit supply.
6. Chokes Repo markets due to collateral shortages.
7. Cripples pension funds by increasing funding deficits.
8. QE Forces consumers to save even more.
9. The rise of populism and extreme political frictions.

#55 Tony on 07.29.18 at 10:00 am

Re: #46 LP on 07.28.18 at 11:25 pm

Like I stated before the people who know next to nothing have done well since 2009 whereas the people who have a lot of financial knowledge have done poorly since 2009.

#56 MF on 07.29.18 at 10:02 am

#51 SickAndTired on 07.29.18 at 9:17 am

No one cares about you and your E-millions.

To me, it sounds like the immigration department doing its job, and maybe even saving you some money and heartbreak in the process.

It’s actually the opposite of what we usually hear.

Suggestion: it might help to go to her country and get married first and then apply to bring her here.

MF

#57 Doug in London on 07.29.18 at 10:12 am

You have to wonder, how the hell can so many people be so ignorant in this time in history when there’s more knowledge and information now than at any other time in history?

#58 Doug in London on 07.29.18 at 10:17 am

Wow, I did the test and it’s ridiculously simple, got 6 out of 6.

#59 Doug Rowat on 07.29.18 at 10:43 am

#33 Jacques Strappe on 07.28.18 at 8:41 pm

I got 6 out of 6, so I guess that means I can remain an all-equity cowboy for the rest of my life.

—-

Not many blog dogs admitting to bad scores. Either something’s fishy or this blog is doing its job of creating financial literacy.

—Doug

#60 Leo Trollstoy on 07.29.18 at 11:50 am

I fail all conventional financial “literacy” tests

But I’m still richer than you

Why?

It doesn’t matter what you know

It matters what you do

#61 crowdedelevatorfartz on 07.29.18 at 12:14 pm

DELETED

#62 NoName on 07.29.18 at 12:47 pm

#40 akashic record on 07.28.18 at 9:36 pm
#32 NoName

This is a very different angel of the story from your book. Watch it and tell us what you think. It doesn’t exist as a book so you don’t have to blame yourself with laziness. Hurry up though, the link usually disappears quite fast.

#26 Doghouse Dweller on 07.28.18 at 7:24 pm
The Magnitsky Act ( The Evil Russian Documentary they don`t want you to see )

https://www.youtube.com/watch?v=njzZcdoLP6c

Watched, it is interesting, but…

#63 Boogle Doodle on 07.29.18 at 12:52 pm

I bombed on the mortgage question. Did not read it correctly.
Wonder what the score is for Canadians – we can’t be much better than our US cousins. I see people with 6 figure incomes who don’t have a pot to piss in, if they get fired from their jobs. Its all in real estate, private schools, BMW’s etc.

#64 Victor V on 07.29.18 at 12:54 pm

Scored 6 out of 6.

#65 Doug Rowat on 07.29.18 at 12:58 pm

#52 akashic record on 07.29.18 at 9:49 am
While Doug Rowat on(the)line…

Doug, what do you think of this?

JPMorgan: QE Might Have Devastating Consequences After All

https://www.zerohedge.com/news/2018-07-28/jpmorgan-qe-might-have-devastating-consequences-after-all

1. Results in Asset Bubbles and a Collapse in CapEx
2. Creates Zombie Companies and Crushes Productivity.
3. Low Rates crush savers, make the rich richer.
4. Exacerbates currency wars
5. NIRP hurts the economy, and chokes off credit supply.
6. Chokes Repo markets due to collateral shortages.
7. Cripples pension funds by increasing funding deficits.
8. QE Forces consumers to save even more.
9. The rise of populism and extreme political frictions.

—-

Sounds bad. Is number 10. Drowns puppies? But only the very cutest ones.

—Doug

#66 Fish on 07.29.18 at 1:21 pm

Ok 4 out of 6, but did it in the dark

#67 cowtown cowboy on 07.29.18 at 1:26 pm

Well I got 6/6, so I guess my MBA was worth something…Although there should have been a question “Is it smart to be overweight junior Oil and Gas stocks before a massive correction?”…not sure I would have got that one right…..

#68 crowdedelevatorfartz on 07.29.18 at 1:45 pm

DELETED

#69 Shawn allen on 07.29.18 at 1:48 pm

Leo,it ain’t what you know but what you do that makes you rich

@$$$$$$$$$$$$$

So true. Lot of rich entrepreneurs are not book smart but just know how to make money.

They may get by in people smarts

Then there is Mark who is book smart but has all the people skills of I don’t know maybe a corpse flower but refuses to accept the slightest suggestion along those lines.

#70 Fish on 07.29.18 at 1:58 pm

what is going to happen with Ontario, look what I came across

Property ID: 101341602

http://www.century21.ca/miranda.veitch/Property/ON/P9A_1G8/Fort_Frances/255_Scott_Street

255 Scott Street –
Building For Sale! Many members of the Rainy River District community have been inside the retail space of this well built building on Scott Street.
Since 1947 Brockie’s has been a benchmark in our town. However, what lies beyond the former front retail space is just as impressive as the jewelry that was once showcased.
The building has SECOND entrance off of Scott St (and access from the back alley) that his rented out to the Ontario Public Service Employee Union Membership Centre.
This second potential retail space has a large board room, filing room, office and 2 pce washroom.
There are 2 electrical panels and separate meters servicing the 2 sides of the building.
Each side is heated with their own new forced air gas furnace.
New hot water tank.
The building also has a full basement with his and her restrooms and TONS of storage space.
Parking for 3 vehicles in the rear.
Excellent location in the heart of downtown Fort Frances, just next to the Newly Developed Market Square.
For a private viewing, call today!

#71 More or Less on 07.29.18 at 2:07 pm

I am a contrarian, got a perfect 0/6

#72 Russ on 07.29.18 at 2:10 pm

To everyone who posts their test results, please pick up one of these before leaving for the day.

Cheers

https://www.ebay.com/sch/i.html?LH_CAds=&_ex_kw=&_fpos=&_fspt=1&_mPrRngCbx=1&_nkw=participation+ribbon&_sacat=&_sadis=&_sop=12&_udhi=&_udlo=&_fosrp=1

#73 tccontrarian on 07.29.18 at 2:35 pm

I scored 7! What the…?

TCC

#74 BobC on 07.29.18 at 2:39 pm

DELETED

#75 Phylis on 07.29.18 at 2:55 pm

Hmmm Tennessee scored higher than California.

#76 Where's The Money Greedo? on 07.29.18 at 3:06 pm

Re: #26 Doghouse Dweller on 07.28.18 at 7:24 pm
The Magnitsky Act ( The Evil Russian Documentary they don`t want you to see )
https://www.youtube.com/watch?v=njzZcdoLP6c
What an absolute thriller of a documentary!
Seems out Mr. Browder is a very shady individual and possible murderer and it seems HSBC has its dirty hands all over this, especially when they admitted in the US to laundering billions (https://www.telegraph.co.uk/business/2017/12/11/hsbc-spared-us-money-laundering-sanctions-battles-clean-act/).
https://www.reuters.com/article/us-hsbc-usa/hsbc-draws-line-under-mexican-cartel-case-after-five-years-on-probation-idUSKBN1E50YA
A commentor said this in the comments section of that documentary:
Allen Weiss 1 day ago
“Browder is a parasite who fled the Unite States because he didn’t want to pay taxes. Went to Russia, stole hundreds of millions of dollars on route to becoming one of the richest and most corrupt of the Oligarchs, and didn’t pay taxes there either. Now hiding out in UK along with all the rest of the exiled Oligarchs facing criminal charges for their crimes”
Isn’t that funny, former BC Premier Gordon Campbell disappeared to the UK right after running away from BC after years of graft of BC citizens, and Calgary Flames co-owner Murray Edwards ran there right after the Mount Polley dam burst in the Quesnel-Williams Lake area of BC. Christy Clark, at the time BC’s Premier, delayed ANY prosecution of Imperial Metals and Edwards because Edwards held a dinner for Clark in Calgary that ended up depositing $1 million into the BC Liberal coffers before the election that turfed Crusty.
Aren’t we glad that Crusty got turfed and now we’re finally seeing all the corruption that Campbell and Clark foisted upon BC Citizens.
https://globalnews.ca/news/1490361/tailings-pond-breach-at-mount-polley-mine-near-likely-bc/
https://globalnews.ca/news/1496838/mount-polley-tailings-breach-who-is-imperial-metals-murray-edwards/
I guess all corrupt gangsters end up there. Any bets on which Canadian politco-billionaire is the next one to show up there.
Oh to be a fly on the wall where these cretins congregate to initiate the next fraud-theft on ordinary citizens.
Again read Norm Farrell’s blogs at his site to get the chronological destruction that these two wreaked upon BC’ers at:
https://in-sights.ca/
I can see why the US regards Canada as a security risk with so many politicians (especially here in BC with the real estate cartel in tow) regularly trotting off to China to instigate the next schemes.
We’ve been sold out and Canadians slop up all manners of lies that these creeps put forth by their instruments, the MSM.

#77 The Real Mark on 07.29.18 at 3:23 pm

#67 Shawn allen on 07.29.18 at 1:48 pm
Then there is Mark who is book smart but has all the people skills of I don’t know maybe a corpse flower but refuses to accept the slightest suggestion along those lines.

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

My mom say’s you’re mean.

#78 T on 07.29.18 at 3:41 pm

#54 MF

What should be done is a fiancee visa. Marrying in the other country can cause unforseen complications.

#79 David on 07.29.18 at 4:02 pm

Took the quiz and got 6 out 6. Can prove it too.
More importantly if a person can do simple algorithms and polynomials and exponentials this quiz isn’t that challenging. Point is real estate is in huge trouble. The departure from fundamentals happened ages ago. The party was too good.

#80 akashic record on 07.29.18 at 5:05 pm

#63 Doug Rowat on 07.29.18 at 12:58 pm

#52 akashic record on 07.29.18 at 9:49 am
While Doug Rowat on(the)line…

Doug, what do you think of this?

JPMorgan: QE Might Have Devastating Consequences After All

https://www.zerohedge.com/news/2018-07-28/jpmorgan-qe-might-have-devastating-consequences-after-all

1. Results in Asset Bubbles and a Collapse in CapEx
2. Creates Zombie Companies and Crushes Productivity.
3. Low Rates crush savers, make the rich richer.
4. Exacerbates currency wars
5. NIRP hurts the economy, and chokes off credit supply.
6. Chokes Repo markets due to collateral shortages.
7. Cripples pension funds by increasing funding deficits.
8. QE Forces consumers to save even more.
9. The rise of populism and extreme political frictions.

—-

Sounds bad. Is number 10. Drowns puppies? But only the very cutest ones.

—Doug

I didn’t know #10 existed.
You must be connected, why don’t you ask JP Morgan to verify if they have a secret #10?

#81 BobC on 07.29.18 at 6:33 pm

Doug, you better go back and delete my post # 7 Canada is beautiful before they watch the video. We wouldn’t want anybody to know what’s going on.

#82 Fish on 07.29.18 at 11:22 pm

If you are not there, you don’t know, done is done
You could flip a coin and make a call

But when you get to where you temporary hang your hat
After long 7 plus years perfectly fine,

and there a nut , with a green truck and Alberta plate
With a red loc on his steering wheel,

that tries to start things, who is the one that truly scared you, also

which doesn’t have any ideal,

who makes assumptions, and you don’t even
Talk to the nut job, be aware, who is really keeping

The score card
best to
Hear it right from the one who is in the now

#83 Incubus on 07.30.18 at 8:42 am

Got 6/6