Moving on

We can’t let this summer week end without drawing your attention to some things that deserve it. First up is a follow to yesterday’s hectoring post which told you to stop trying to time the markets, shut up and just invest.

Right on cue: the melt-up.
As predicted. US equity markets have soared to new records. They did it decisively, methodically and solidly. If you own ETFs pacing the Dow, the S&P 500 or the Nasdaq, you’re a happy camper. And there’s more to come, it seems.

The Dow hit a few highs this week, and sits 17% above its level of just six months ago. The return over one year is 12%, and that takes into consideration the 20% rout at the end of 2018 which had the steerage section changing its Depends every few hours. The S&P is even more dramatic so far in 2019 – ahead 20%. Bay Street is struggling with those flaky weed stocks and wonky oil, but has also rewarded investors with a 15% return. Preferreds are up about 3% in a month, and pay a dividend (tax-efficient) of almost 5%. Beats the pants off a GIC. Even pathetic government bond ETFs have given about 4% so far in 2019. Overall, a balanced portfolio is ahead about 10%.

This doesn’t mean the second half of the year will repeat this, of course. But it does mean those who bucked the advice here last autumn and sold into a storm were fools. At the time I chronicled a couple of them – people who ignored my pleadings and ran for the exits, turning paper losses into real ones. So while prudent portfolios have given low-taxed, double-digit returns, they’re parked big money in low-yield GICs ravaged by inflation and fully taxed.

This is what emotion does. It steals your money.

While an economic slowdown at some point is inevitable, the best strategy is to ignore it – unless your portfolio’s peppered with individual stocks, lacks diverse fixed income assets or isn’t global. Review the weightings published here. They work.

Why houses go up
Not a week passes, it seems, without BC politicians trying to push public opinion into a xenophobic stupor. This time is was ‘news’ that the ill-named speculation tax (on people with second properties) raised more money from offshore owners and ‘satellite’ families than, say, Albertans. Of course, the spin was large, but the numbers were not. Both the spec tax and the empty houses tax in Van are high-profile (due to their arbitrary unfairness) but meaningless. It wasn’t Chinese dudes who goosed prices in Vancouver or Toronto to historic high levels. Rather it was historic low interest rates, which caused Canadians to borrow an historic amount.

Don’t believe me? Here ya go…

Source: RateSpy

Vox Canabis mortuus est
This past week we heard from a number of brave Blog Dogs who took up the challenge to share a post with me. Most of them were mercilessly skewered in a pique of unbridled cannibalism by their fellow deplorables. We may do this again, but not soon.

Thought you might be interested in a comment from Jake, one of the posters who tried to defend and ennoble being a measly little socialist. It didn’t work.

“You asked today whether or not the Vox Canibus should continue,” he says. “I’m going to vote yes, but not because of what people are posting, but rather because of the experience.

After my opinion was shared on Friday, the steerage section certainly rose to the occasion – bash the uneducated for having an opinion! Forget manners and decency, go grab the pitchforks! I’m curious to see what the deleted comments had said… maybe it’s better that I don’t know. It was a rather humbling experience, and something I had not really considered before: you put up with that crap on a daily basis, and have done so for years.

I think the Blog Dogs section should continue, to allow others to experience the steerage section feedback. As a “snowflake millennial” (I think that’s what I heard some wrinklies call us the other day) it is a good practice to develop tougher skin. I can’t say I’m used to being bashed so efficiently, so maybe I should offer more comments in order to develop a thicker skin.

Perhaps my next 500 word essay should be about what’s right with the world – people like Garth who put up with commenters in order to educate and inform those of us who need it. At least I’d know my opinion was right that time (it clearly wasn’t on Friday).

I’m sure you don’t hear it enough, but thank you for blogging every day and for helping us little guys understand the world a bit better. It truly is appreciated, regardless of what the vocal crew say in the comments.

Okay, Jake. You can rejoin the pack. In your place.

What emergency?
Finally, with interest rates in the ditch and likely heading lower over the next year, money is cheap. Loans are a gift, costing barely more than inflation. Borrowing money to buy something, of course, creates debt. But arranging to borrow in case you need the funds costs nothing. And that’s the beautiful thing about standby lines of credit.

This is worth mentioning in light of the experience one regular reader just had after being savaged by the nimrods on Reddit.

I made the mistake of posing a question on a “personal finance” sub-Reddit (I should know better…): “Why do so many people advocate large cash reserves for an emergency fund. Often $15,000 to $20,000 or more for 3-6 months of living expenses just sitting in a HISA making less than the rate of inflation, when an LoC can be used instead?”

Oh boy I was downvoted and torn apart by ignoring that particular financial gospel and arm-chair internet financial experts. My reasoning was crazy, irresponsible and, gasp, reckless!

In the event of a serious emergency, such as extended job loss, I can simply immediately use my LoC as needed, then if more months go by, withdraw some RRSPs at $5 a trade. Why would any sane Canadian keep such large emergency cash reserves, unless they have no LoC and no financial portfolio to fall back on? Am I really the crazy one loosing touch with reality here?

Not loco at all. Firs, people who assiduously maintain an ‘emergency fund’ realize after a few decades that an emergency never happens. It’s a myth for most people. So sitting on tens of thousands earning nothing – and ending up spending it on shoes and new taps – is no way to achieve financial independence. If you have money, invest it. Don’t save it. And especially in something as dumb as a ‘high-interest’ bank account.

Second, this is a perfect use of a LOC. It costs nothing to set one up, nor are there recurring charges to keep it in place. The interest rate charged on outstanding balances is irrelevant since this is money for an emergency that will never happen. If it did, then (as the dude said) merely sell off an asset and pay it back. The key is to keep your funds working at all times, safe in the knowledge that if an asteroid did hit your home you could just write a cheque.

The real danger, of course, is Reddit. Maybe we could send that women-voting guy over there?

89 comments ↓

#1 Lost...but not leased on 07.12.19 at 4:33 pm

Phyyrrzzzttt !

#2 n1tro on 07.12.19 at 4:39 pm

I really should get my butt to the Mint and cash out the $6K of the 20for20 silver coins I bought with my cash rebated credit card.

#3 Mr Canada on 07.12.19 at 4:57 pm

Thanks Garth – I converted my HELOC balance at 4.4% into a 5 year fixed Mtg @ 2.8%. I have been saying I would do this for 3 years and did nothing ….your articles this past week motivated me to finally do something..

#4 Another Deckchair on 07.12.19 at 5:03 pm

Hey Jake;

Good for you for putting yourself out there, and for accepting the “feedback”.

I think I learn more from failures than successes, at least you know when you’ve crossed a boundary with a failure, but with a success, you have no idea where the boundary is.

Keep going kid!

Respectfully – a young Boomer.

#5 Tater on 07.12.19 at 5:10 pm

The problem with withdrawing from an RRSP to float you through a job loss, is that you can’t ever put the money back, and you lose the tax deferred growth you could have had. If you pull 50k out of an RRSP at 35 because of job loss (only nets you 35k) you miss out on having an additional 500k in your RRSP at retirement.

I’d say the way to go, is yes, have an emergency fund. 3 months is fine. Then TFSA, then an LOC. RRSP early withdrawals should be a last resort (unless you were using a spousal to split income for a mat leave)

#6 Billy on 07.12.19 at 5:12 pm

A few thoughts: 1) Know what your getting into with preferred shares – especially regarding rate reset provisions which generally favor the issuer: https://business.financialpost.com/investing/investing-pro/five-potential-pitfalls-of-preferred-shares 2) 60-40 is a sound rule of thumb for balanced portfolios, but alternative ratios are readily available (depending on risk tolerance and time horizon) at similar MER’s via ETF providers like Vanguard. https://www.moneysense.ca/save/investing/etfs/canadas-best-etfs/
3) Fact of life that health-related emergencies become more likely as we age (think dental) – and when a LOC may no longer be the best solution for those on a fixed income. TFSA’s allow you to stay invested and withdraw as/when needed with no tax implications.

#7 ALFRED E. NEUMAN on 07.12.19 at 5:17 pm

“It wasn’t Chinese dudes who goosed prices in Vancouver or Toronto to historic high levels.”

Garth. We wintered 2016 in Vancouver and I met several Realtors on casual and social occasions.

Quite often, the topic of Asian buyers cropped up, and ALL the Agents I met were willingly vocal that once they mentioned the prospect of a potential Asian Offer, the FOMO-juices jumped and the Offer-$$$ escalated.

So, if indeed, our Far East folks weren’t truly competing against local Canuck prospects, those Realtors who hyped it as a part of their standard marketing, owe the Asians a hefty portion of their insane commissions.

#8 Toronto_CA on 07.12.19 at 5:19 pm

I’m on 3 month’s notice at work, so if I’m laid off I get 3 month’s pay which is more than 6 month’s expenses. My work covers me if I’m unable to work for up to 104 weeks, then income replacement insurance kicks in.

I also would qualify for EI..and have private and public medical insurance. I rent, and have tenant’s insurance. So, what emergency do I need to cover via a cash fund?

Obviously, people should spend less than they earn and invest their savings, but a huge emergency cash fund doesn’t make sense for many people.

#9 Coopoiler on 07.12.19 at 5:25 pm

I had a unsecured line of credit for years. I then added a secured line of credit (lower interest rate). Never used it. Finally went to bank to close it. I was informed it would be $300.00 to close it. Talked to manager and stated it was a big mistake to set the loc up as I never did use it and now it was going to cost me cash. Looked at the account history and said you are right it was never used. Fortunately the fee was then waived but they were not obligated to do so. Lucky me

#10 Nonplused on 07.12.19 at 5:26 pm

Looks like it’s happening for real:

https://wolfstreet.com/2019/07/08/update-on-the-housing-bust-in-vancouver-canada-spring-hopes-got-crushed/

#11 Max the Tax on 07.12.19 at 5:37 pm

Everybody in love with the security features of blockchain transactions should check out the report:

https://www.securityevaluators.com/casestudies/ethercombing/

ethereum is ephemeral as is bitcoin etc.

#12 Dolce Vita on 07.12.19 at 5:40 pm

Jake…

“what’s right with the world – people like Garth who put up with commenters in order to educate and inform those of us who need it.”

No truer words Junior. Yes indeed.

Now, you can get back and preach how to ruin an entire economy to your acolytes (who don’t have a job, a family, a mortgage, pay taxes and live in their parents basements…and, covet the money of others to redistribute to themselves).

;-)

#13 Dave on 07.12.19 at 5:40 pm

The forest industry is falling apart with big layoffs coming up. BC economy is in big trouble.
Trucking business is grinding to a halt.
Real estate is dead

#14 AGuyInVancouver on 07.12.19 at 5:40 pm

“..It wasn’t Chinese dudes who goosed prices in Vancouver or Toronto to historic high levels. Rather it was historic low interest rates, which caused Canadians to borrow an historic amount…” – Garth
_ _ _
Please give me the name of the financial institution that will ignore my ability to service the mortgage and instead will willingly hand out wads of cash so that I too may claim my Vancouver mansion, just because interest rates are low.

#15 Andrew on 07.12.19 at 5:49 pm

Orange man say orange coin bad. Orange coin number go up. Orange coin good.

https://twitter.com/realdonaldtrump/status/1149472282584072192?s=21

#16 Dolce Vita on 07.12.19 at 5:51 pm

“Vox Canabis mortuus est”

…adhuc vivat.

You have an amazing cohort of followers.

In æternum vive My Liege.

#17 Linda on 07.12.19 at 5:52 pm

About the ’emergency fund’ issue. I agree having an approved LOC option is superior to tying up thousands of dollars in a bank account paying little or no interest. However, I seem to recall some headlines during the GFC of 2008 where financial institutions were restricting LOC usage regardless of whether a balance was owing. Plus demanding immediate repayment as the extent of the crisis became more apparent.

While one would trust that a repeat of the GFC will not occur again I can’t help but think that it wouldn’t hurt to have a modest sum of cash – say no more than a month’s worth of actual expenses – to hand. I get the reason trumps emotion meme & subscribe to it. That having been said, those camera images of people trying to get their cash money out of a bank/ATM & the emergency measures of limiting how much anyone could take out tend to stick. Could explain the Reddit reactions…..

#18 Nonplused on 07.12.19 at 5:55 pm

Another good reason to get a HELOC is as a form of title fraud insurance. In the event of title fraud, which is rare but happens from time to time, the crooks target homes that do not have liens (i.e. a mortgage) on them because the land title agents generally do not contact the owner to see if the transaction is legit. However they will contact the bank if there is a lien. And then there you have it, an emergency fund too. I think usually at a lower interest rate than an unsecured line would be to boot!

#19 crowdedelevatorfartz on 07.12.19 at 5:58 pm

@#9 Coopoiler
“Fortunately the fee was then waived but they were not obligated to do so. Lucky me>
++++
I had a similar experience with the bank.
The were going to charge me exorbitant “user fees” when I tried to delete the LOC.
I said to the teller.
“If you charge me those fees I will immediately pay off my loan, close my account, cancel my credit card and never deal with this bank again.”
She talked to the Manager.
They cancelled the fees.

#20 Sail away on 07.12.19 at 6:09 pm

Jake,

The reason you were bashed so completely is because you wrote about something you didn’t understand (corporate taxes) to the people who do understand them, you were incorrect in your assumption about the way taxes are assessed to corps, and you hypothesized that businesses were the problem with this country, which was a direct insult all the blogdogs who own businesses.

You deserved everything you got.

Next time write about something you understand fully. Even if it’s the lint in your bellybutton. Remember, it’s better to be thought a fool than to open your mouth and remove all doubt.

#21 Dolce Vita on 07.12.19 at 6:17 pm

#13 Dave

You might be right.

Mar. to Apr. 2019 Retail Trade Sales increase for BC was $80.3 million, very slow for them.

By contrast (same period):

ON = $929.9 million
PQ = $565.3 million
AB = $371.5 million

Still, the single data point. Wait a quarter and see.

https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=2010000801

#22 Barb on 07.12.19 at 6:18 pm

#9 Coopoiler on 07.12.19 at 5:25 pm
———————————-

“Finally went to bank to close it. I was informed it would be $300.00 to close it.”

Yet another reason many people hate banks.
I’m one of them.

#23 Sail away on 07.12.19 at 6:25 pm

Another way to look at the emergency fund is that in an actual, true emergency, everything is fair game. Tap the investments, RRSP, TFSA, and RESP, borrow from family, take a loan, sell the car, farm out the kids’ labour, eat beans. There isn’t a need to hold a lot of cash.

As Garth mentions, actual emergencies are rare.

#24 Reximus on 07.12.19 at 6:29 pm

my friends were house hunting in 16 when real Estate was nuts…they were looking in Markham. In those days bid wars, werè normal.

they noticed the same group of Asian folks were there looking all ‘Crazy Rich Asian’ with an S500 pretending to be interested in the property. They were at many bid nights. Never actually bid. ..but it worked.

#25 Yanniel on 07.12.19 at 6:33 pm

“so maybe I should offer more comments in order to develop a thicker skin.” Jake.

Just go live in one of those socialist utopias. Make sure not to bring any of those pesky (and capitalist) dollars. You’ll get the skin of a rhinoceros :-)

#26 TurrnerNation on 07.12.19 at 6:36 pm

Ersatz Cannabis Vox poster here.
In summary we should be governed by children; capitalism sucks; socialism rules. Ps buy Bitcoin.

#27 Penny Henny on 07.12.19 at 6:41 pm

Preferreds are up about 3% in a month, and pay a dividend (tax-efficient) of almost 5%. Beats the pants off a GIC.
//////////

So true but it must be noted that preferreds are down 12% from 9 months ago.

But of course this comment will not make the board.

How many times do you have to reminded? Buy then for yield. – Garth

#28 Leo Trollstoy on 07.12.19 at 6:51 pm

#19 crowdedelevatorfartz on 07.12.19 at 5:58 pm

You actually think that your insignificant business matters

That’s cute

#29 Ace Goodheart on 07.12.19 at 6:51 pm

Market timing:

Buy the dips.

How do you know when it’s a dip?

The doom and gloom folks will be screaming “sell sell sell”. The major indexes will be moving downward. People will be dumping stuff and moving to cash. There will be a bunch of gold bugs trying to convince everyone to buy into the shiny useless metal.

That’s a dip. When you hear and read doom and gloom, back up the truck.

I made an obscene amount of money this past December buying when everyone else was selling.

That was a dip.

Buy the dips.

Sometimes the dips last for years. This is good. Buy more. Sometimes the lows are ridiculously low. This is amazing luck. Like shopping for Gucci at Walmart. If you find it there, buy some. It’s on sale. The lower the prices, the better. People line up for hours when gasoline is on sale for ten cents off per liter. When stocks go on sale no one is buying. What’s the difference?

Back in March of this year, people started noticing that there was an unusually large amount of snow in Algonquin Park. And a hard, rainy spring was forecast.

What did our federal government do?

Well, it looks like they had a lot of literature prepared for the local papers. Scientific articles. All ready to publish. Waiting…..

Come April and the waters broke loose. People had been building in flood plains for years. An accident waiting to happen. Permits issued for buildings located on dangerous flood plains. No proper watershed management. Lots of snow. Rain, rain, rain.

You would think emergency preparations would be put in place. Watershed management. But no. Nothing. Let it flood….

And what is the government’s response to the flooding? Like chicken little. The sky is falling. It’s the end of the world. There is nothing we can do….except new taxes.

Somewhere, someone got the bright idea that the spring flooding, which was entirely predictable and would occur in an election year, could be blamed on carbon emissions.

That’s right. A heavy snowfall followed by an early sprint was caused by too much carbon in the atmosphere, meaning a new tax was necessary.

If this sounds like listening to an alchemist explaining transubstantiation you are not alone in thinking this. Monty Python’s skit on uncovering witch craft contained similar reasoning: “if she weighs the same as a duck, then she’s made of wood, and therefore, a witch!”

Without any evidence or proof, it is now possible to blame each and every natural disaster on “climate change” and use this reasoning to tax the crap out of daily human activities.

But to do this, you need natural disasters. So if you know that dangerous meltwater conditions exist that might cause flooding to buildings improperly constructed on flood plains, do not intervene. The flood must happen.

If you know that cities have been built without thought to forestry management, with flammable coniferous trees allowed to exist directly next to people’s houses, do not intervene.

We need natural disasters. To justify excessive taxation.

Just let it happen….

#30 Yeah ... on 07.12.19 at 6:54 pm

It’s hard to thank you enough for what you do for the average dawg. Nobody else does … sadly …

#31 jess on 07.12.19 at 6:55 pm

At face value the business was an ordinary security firm that offered its services to retail, industrial, and commercial companies. However, the company allegedly accepted cash from organized crime groups and then moved it through a series of financial transactions in order to hide its origins. The money was then withdrawn and passed back to crime syndicates either in Australia or abroad.

Sydney Police Bust Firm for Laundering $70 million
Published: Friday, 12 July 2019 14:56
Written by Ivana Saric

https://www.occrp.org/en/27-ccwatch/cc-watch-briefs/10199-sydney-police-bust-firm-for-laundering-70-million
========

Bitcoin ATMs a “Hole” in EU Anti-Money Laundering Rules

Spanish police are raising questions about Bitcoin ATMs, which they say are currently not covered by the European Union’s anti-money laundering regulations, Bloomberg reports.

#32 Tyberius on 07.12.19 at 7:09 pm

The Reddit dude:

“Why do so many people advocate large cash reserves for an emergency fund. Often $15,000 to $20,000 or more for 3-6 months of living expenses just sitting in a HISA making less than the rate of inflation, when an LoC can be used instead?”

Sure, having a LOC on stand-by IS better, but only IF one actually knows how to invest. As the vast majority have a phobia of “Investing” in general, they opt out for the least common denominator – cash.

#33 Jack Manning on 07.12.19 at 7:17 pm

Anybody that has debt at 2.8% or any rate is a straight loser. Debt is for slaves.

#34 Gonzo the Great on 07.12.19 at 7:30 pm

“..Maybe we could send that women-voting guy over there?”

Precious, superb wit ! I have tears in my eyes and can’t stop laughing. Good thing I’m the only one left in the office.

Thanks Garth. I needed that.

#35 mitzerboyakaQueencitykidd on 07.12.19 at 7:57 pm

The dogs Friday felon

https://crooksandliars.com/2019/07/never-trust-guy-wearing-smiley-necklace

#36 Tyberius on 07.12.19 at 8:01 pm

29 Ace Goodheart

“I made an obscene amount of money this past December buying when everyone else was selling.

That was a dip.

Buy the dips. ”

Haha

If you haven’t sold what you bought, you’ve made zilch! All ‘paper gains’ my friend. Only when you realize the gain is it a true gain.
Let’s see what you’re saying in December…

#37 Sail away on 07.12.19 at 8:06 pm

#22 Barb on 07.12.19 at 6:18 pm

#9 Coopoiler on 07.12.19 at 5:25 pm
———————————-
“Finally went to bank to close it. I was informed it would be $300.00 to close it.”

Yet another reason many people hate banks.
I’m one of them.

——————————

Really? You’re a bank?

Sorry, bad joke.

I’m a big fan of banks these days with all the options available. All savings, checking, credit card, investing and registered accounts can be kept there, business accounts can be tied directly to the personal account, and everything is accessible from anywhere in the world with an internet connection.

There are some fees. On the other hand, the more you keep there, the more the fees are waived. Colour me a happy and loyal bank customer.

#38 SoggyShorts on 07.12.19 at 8:12 pm

#29 Ace Goodheart on 07.12.19 at 6:51 pm
Market timing:

Buy the dips.
*******************************
But in order to “buy the dips” you’d have to be sitting on a bunch of cash that is earning nothing, right?
Does it really pay off?
When markets are melting up you’re sitting there waiting for months or possibly years for a little dip so you can join in the fun?

#39 Tim on 07.12.19 at 8:18 pm

If low rates caused the bubble in Vancouver then why is it ten times more expensive than any other Canadian city? It was Chinese money laundering and you know it.,

Van housing is comparable to that in the GTA, for the same reason. Look at the chart. – Garth

#40 Nineteen84 on 07.12.19 at 8:25 pm

” If you own ETFs pacing the Dow, the S&P 500 or the Nasdaq, you’re a happy camper. And there’s more to come, it seems.”

As another poster noted here a while back, the S&P 500 is hardly indicative of the health of the markets. I read somewhere last week (if I find it, I’ll provide the link), that only 77 (of the 500) are actually up in 2019. Furthermore, the 2,000 stocks in the Russell are over 10% lower than their 2018 peak.

Add to the mix that the Fed is considering lowering rates, or at least keeping them where they are, and we have reason to be concerned, methinks.
I’m not optimistic. I was born in 1984 and my name is George.

#41 Sail Away on 07.12.19 at 8:34 pm

#33 Jack Manning on 07.12.19 at 7:17 pm

Anybody that has debt at 2.8% or any rate is a straight loser. Debt is for slaves.
———————————————

But, but… I’m deducting the interest from taxes and clearing 10-15%. If I am a slave or loser, I’m becoming a richer one.

What would a winner like yourself suggest?

#42 akashic record on 07.12.19 at 9:43 pm

It wasn’t Chinese dudes who goosed prices in Vancouver or Toronto to historic high levels. Rather it was historic low interest rates, which caused Canadians to borrow an historic amount.

Maybe that’s how prices got high. But that’s not the end of the story.

All that extra money pumped into existence and promptly converted into debt can never be repaid without financial, political upheaval, it has to be inflated.

That will keep real estate prices high in gutted, worthless money.

#43 Robert Ash on 07.12.19 at 10:18 pm

First while I appreciate Garth, Doug, and Ryan’s advice, and I believe in the advocacy of Long Term Investing, if your time horizon, is 10 plus years… but if you like many Older Folks, use your Traditional Business Training, .. Theory and Experience, this is an interesting perspective, and it summarizes, my feelings… The same ones I had prior to the Dot.com Debacle… When I reflected on Our Business Profs… Command never invest in any business, that has no operating history..IPO’s are special cases.. it is all conjecture, and of course the strict training of Accounting Ratios to assess, fundamentally a businesses worth.. Taught us, pessimism, or realism? Here’s the Quote:
Are you baffled by where the stock market is headed next? You’re not the only one.

In recent weeks, stocks have advanced, based on the dubious logic that bad news is good news. According to this line of thinking, weaker global growth will be a pick-me-up for share prices because fading growth will pull already low interest rates even lower and increase the attractiveness of stocks.

If that makes sense to you, you are a very trusting soul. Or a money manager in need of comfort.
Interesting quote, but one has to ask, .. if the Business fundamentals, just aren’t adding up… maybe time to follow Garth’s advice, and enjoy life, take a break, and hope our Lunatics, are Luckier than their Lunatics…Quote: Link;
https://www.theglobeandmail.com/investing/markets/inside-the-market/article-five-market-indicators-to-see-where-the-market-moves-next/

#44 Shawn Allen on 07.12.19 at 10:22 pm

RRSP Strategies

#5 Tater on 07.12.19 at 5:10 pm
The problem with withdrawing from an RRSP to float you through a job loss, is that you can’t ever put the money back, and you lose the tax deferred growth you could have had. If you pull 50k out of an RRSP at 35 because of job loss (only nets you 35k) you miss out on having an additional 500k in your RRSP at retirement.

I’d say the way to go, is yes, have an emergency fund. 3 months is fine. Then TFSA, then an LOC. RRSP early withdrawals should be a last resort (unless you were using a spousal to split income for a mat leave)

***************************
(Because getting $50 out of an RRSP at and around age 35 is worth it even if it means having $500k less at retirement?)

I mean, you will have saved maybe $150k in tax. So what if it costs you $300 in lost after-tax RRSP withdrawals in in retirement, right?

Interesting thinking…

We “failed” to take any out for Mat leaves and now are umm “stuck” with 7 figures in RRSPs.

But I agree with this comment to never take out of RRSP for emergencies. I would just not make ANY exceptions prior to retirement. Treat RRSP money as untouchable until retirement. Ignore any other advice.

#45 Mike on 07.12.19 at 10:47 pm

I believe I read the Reddit posting and replied that an “emergency fund” is a joke. I too got roasted.

Garth said not to time the market, however, there are times where prices are so out of whack, it makes sense to time a buying or selling opportunity.

I bought a load of preferred shares when they dropped – one was up 10% plus the divvy in as little as a month. I’m now slowly purchasing shares in stable oil exploration/production companies. Picked up VET and mid $27’s, bought KEL today. Both of these pay high dividends only because the share price from a few years ago had plummeted while their book value is below equity value. DUH.

#46 Vampire Studies (doctoral thesis) on 07.12.19 at 10:58 pm

I recall reading the biggest reason for a cash reserve of a few months was attitude. Yes, emotional, but it gave you a swagger, a confidence that said “go ahead, fire me” or “No, I’m not lowering my price”. The irony being that it made your prospects more secure. You
could concentrate on your work, sleep better, and
basically enjoy life more.

#47 Oh Canada, I weep. on 07.12.19 at 11:10 pm

More proof that only an idiot still thinks that climate change is isn’t just a devious tax and spend program.

https://news.yahoo.com/aoc-chief-staff-admits-green-124408358.html

When will people get it that the cash grab is real, climate change emergency, total BS. Sooner or later they will need to officially stop the Carnage and lay charges.

#48 Billy on 07.12.19 at 11:13 pm

#27 Penny Henny on 07.12.19 at 6:41 pm

Buying Preferred’s for yield without consideration of the realistic potential for capital erosion due to interest rate variability in conjunction with the typical redemption & reset provisions leaves out part of the equation. For example: a comparison of the ZPR Preferred ETF versus ZLC long bond fund starts in favor of ZPR in terms of yield (roughly 5 to 4%) – but ZLC’s unit price is up close to 8% over the last 5 years while ZPR is down 31%. Bonds don’t have redemption or reset features – allowing for an unrestricted inverse correlation between rate-yield changes and unit price. Preferred share price, on the other hand, won’t stay above the ‘prescribed’ value for long (no matter how favorable conditions become) where the issuer has an eventual right of redemption. If the price moves lower, however, they typically won’t get redeemed – meaning Preferred’s with these common characteristics are effectively assets that can go down but not up in value over the defined term.

#49 Rifles on 07.12.19 at 11:25 pm

DELETED

#50 Hookshot on 07.12.19 at 11:25 pm

#27 Penny Henny on 07.12.19 at 6:41 pm
Preferreds are up about 3% in a month, and pay a dividend (tax-efficient) of almost 5%. Beats the pants off a GIC.
//////////

So true but it must be noted that preferreds are down 12% from 9 months ago.

But of course this comment will not make the board.

How many times do you have to reminded? Buy then for yield. – Garth
……
Yes, buy for the yield….but it would be nice if the capital cost remained reasonably close to where you bought them….not take the big drop they have. We were not expecting a capital gain, just not so much of a loss as eventually they will be sold.

#51 Sean on 07.13.19 at 12:50 am

I can only assume your return numbers aren’t taking exchange rate into account? The rise in the CAD has meant a lower return from US and international stocks than you state. You also neglected to include that international (developed, ex North America) is down over the last 12 months.

#52 Smoking Man on 07.13.19 at 12:53 am

So wifey poo is up 500k trading forex since March I trained her after I got pissed off with her stupidity of playing Penney slots where the win ratio is at about 85 %. All that loot is coming from my tax farm gig. Which is hobby that stops me from day drinking.

Now she’s playing 100 dollar bets in the high limits room where the payout is 99%.

She’s having a good night.

Turned 60 today my dogs.

I know Gartho thinks gambling is stupid. I’m living proof that it ain’t that bad.

Love all you ass holes even the teachers that mind fk you millenials. You will come around when you get a job and see what T2 and his globalist band of perverts take off your paycheck.

Capitalism Rocks.

Dr Smoking Man
PhD Herdonomics.

#53 Smoking Man on 07.13.19 at 1:34 am

DELETED

#54 Stats freak on 07.13.19 at 1:40 am

Gawd, how I love you, Garth, and your voice of common sense! I just can’t get enough of your daily reminders that have given new the confidence over the years to invest & stay the course. It has served me well and I appreciate you beyond measure!

#55 NEVER GIVE UP on 07.13.19 at 1:50 am

The 5 year bond yield chart should also add a line that corresponds to the enslavement of our young people.

That line would correspond with the average home price line.

#56 steerage steeward on 07.13.19 at 4:11 am

Garth;

It’s great that you allowed will informed people too have a place here.

https://www.youtube.com/watch?v=IUmnTfsY3hI

#57 Gravy Train on 07.13.19 at 6:06 am

#8 Toronto_CA on 07.12.19 at 5:19 pm
“[…] [A] huge emergency cash fund doesn’t make sense for many people.”

#23 Sail away on 07.12.19 at 6:25 pm
“[…] There isn’t a need to hold a lot of cash.[…]”

#38 SoggyShorts on 07.12.19 at 8:12 pm
“But in order to ‘buy the dips’ you’d have to be sitting on a bunch of cash that is earning nothing, right? Does it really pay off? When markets are melting up you’re sitting there waiting for months or possibly years for a little dip so you can join in the fun?”

Here’s another way of looking at cash. :P

“[Alice] Schroeder argues that, to [Warren] Buffett, cash is not just an asset class that is returning next to nothing. It is a call option that can be priced. When he thinks that option is cheap, relative to the ability of cash to buy assets, he is willing to put up with super-low interest rates, said Ms. Schroeder, who followed Mr. Buffett for years before she became his biographer.

“‘He thinks of cash differently than conventional investors,’ Ms. Schroeder says. ‘This is one of the most important things I learned from him: the optionality of cash. He thinks of cash as a call option with no expiration date, an option on every asset class, with no strike price.’

“It is a pretty fundamental insight. Because once an investor looks at cash as an option—in essence, the price of being able to scoop up a bargain when it becomes available—it is less tempting to be bothered by the fact that in the short term, it earns almost nothing.

“Suddenly, an investor’s asset allocation decisions are not simply between earning nothing in cash and earning something in bonds or stocks. The key question becomes: How much can the cash earn if I have it when I need it to buy other assets that are cheap, versus the upfront cost of holding it?

“This is a good insight. Holding some cash is not necessarily a bad thing. What’s bad is holding most of your money in the form of cash. That is a nearly guaranteed losing strategy. The purpose of an investment portfolio is to serve as a place where you protect the wealth you’ve amassed. You achieve this by protecting it against the risk of permanent loss and the risk of purchasing power loss. Cash is guaranteed to avoid one (the risk of permanent loss) and guaranteed to lose the other (purchasing power). So having an excessive allocation in cash at all times makes no sense.[…]”
https://www.businessinsider.com/cash-as-a-call-option-2012-9

I am surprised that Shawn Allen hasn’t piped up! :P
https://en.m.wikipedia.org/wiki/Call_option
https://en.m.wikipedia.org/wiki/Strike_price

#58 dharma bum on 07.13.19 at 8:32 am

#22 Barb

Yet another reason many people hate banks.
I’m one of them.
——————————————————————–

Don’t hate ’em. Buy ’em!

#59 dharma bum on 07.13.19 at 8:38 am

#39 Tim

If low rates caused the bubble in Vancouver then why is it ten times more expensive than any other Canadian city?
——————————————————————–

Nice mountains and a beautiful ocean.

#60 expat on 07.13.19 at 8:39 am

A wise investor told once.
They are only profits if you take them……

I recall at a community kitchen party in Vancouver 5 years ago a neighbor boasting that he made 300k in equity in his house.

I asked him if he sold. He said that would be stupid….

He’s under water now….

#61 dharma bum on 07.13.19 at 8:49 am

Vox Canabis was really just an exercise in moving the comments section to the front page. It only served to taint Garth’s first rate content with scatterbrained drivel.

Ditch the vox canabis, but keep the comments section alive for the dogs, for sure.

I would hate to lose the opportunity to obnoxiously opine and troll with a daily dose of my stupidity and ignorance.

Some of the funniest stuff, and Garth’s snappy retorts, are found in the bowels of this blog.

Shoutout to crowdedelevatorfartz!

#62 CS on 07.13.19 at 8:52 am

Preferred shares will rise in response to interest rate declines just like bonds. The difference is that bonds always pay you back their purchase price. Prefs may not if their reset terms become less favorable than currently available. They’re more complex than they appear.

#63 Tom Wong on 07.13.19 at 8:52 am

“Don’t believe me? Here ya go…”

I thought a rising tide lifts all boats? This doesn’t disprove the impact of offshore capital. Also, as mentioned in earlier posts, your oft stated hypothesis discounting the impact of offshore money does not account for offshore funds channeled through corporations or through individuals who are residents (i.e. students, spouses, etc.) but who are bankrolled by family members who are not. Nothing to do with xenophobia and happy to be proven wrong (as long as it’s based on facts rather than conjecture).

#64 Leo Trollstoy on 07.13.19 at 9:15 am

#57 Gravy Train on 07.13.19 at 6:06 am

Buffett’s view of cash is correct for those who have the time and expertise to execute on deals during downturns

For most people, who are typically mediocre, with limited to no investing related skills, regular contributions into their investment plan is better because their have neither the time nor the expertise to know what to do during a specific asset downturn anyway

#65 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 07.13.19 at 9:26 am

Another beautiful home in Toronto:

https://ca.finance.yahoo.com/photos/they-paid-what-this-480000-toronto-home-comes-pregutted-172753693/

Sigh…I guess I must simply be jealous of the tremendous quality of home life in that city……

Yes….

Argghhh Hoes crushed by Winnipeg

Blow Jays shut out by Yankees.

But when Toronto fans have beautiful homes like this to go back to, all is right in the world of the GTA.

#66 crowdedelevatorfartz on 07.13.19 at 9:41 am

@#28 Leon Trotsky
“You actually think that your insignificant business matters”
+++++

Apparently it did that day.
Its called saving money.
Try it sometime.

#67 Banned Truthmonster on 07.13.19 at 9:49 am

BANNED

#68 IHCTD9 on 07.13.19 at 10:09 am

The IH household is afflicted with the emergency fund syndrome. At one time it had soared to 40k thanks to auto deposits, no emergencies, and no one paying attention to the grotesque accumulation of cash therein.

On top of that, I am probably one of the last guys that really needs to worry about an unexpected “emergency” presenting a large cost. I mentioned a couple times I just shingled our roof, that was an 8-10k bill if contracted out reduced to just under 2k in materials, and I still own the sweet Bostich RN46 I bought for the job (included in the 2k number) for another day. The materials were bought and paid out of our checking account sporadically over the 6 weeks I worked on it, and we never even really noticed it.

I was always a proponent of emergency funds, and it took Mr. T’s cold logic to get me thinking about it again. It did not take long to realize that he was right, and EF’s are essentially obsolete. Banks are begging you to open LOC’s and HELOC’s these days, and the rates are dirt cheap. Today we also have TFSA’s that could be liquidated with no tax implication if absolutely needed (compared to only RRSP’s back in the day). Car dealerships are offering almost free money to buy their product, and will finance you out 5-7 years, sometimes even more – sometimes at 0.00%.

Ms. IH is unfortunately loathe to give up her EF :(. I know she likes the “security feeling” of having a good stack of cash sitting there, but today, a TFSA is just as accessible, and doesn’t sit there at .5% (taxable). She’s coming around slowly…

#69 CHERRY BLOSSOM on 07.13.19 at 10:32 am

Don’t count on your Loc cause the bank doors will be locked and the ATM machines shut down. You won’t even be able to get stuff out of safety deposit boxes. The next recession will DWARF the 2008 one. Nothing wrong with having cash at home. It may not give you 3% but it does give you peace of mind.

Will. Never. Happen. – Garth

#70 AB Boxster on 07.13.19 at 10:47 am

#45 Mike on 07.12.19 at 10:47 pm

Picked up VET and mid $27’s, bought KEL today. Both of these pay high dividends only because the share price from a few years ago had plummeted while their book value is below equity value. DUH.
—————————————————-

VET is a terribly undervalued company,(thanks to T2, as his band of enviroNazis continue to drive investment away from Alberta) as is Kelt.

However, only VET pays a dividend. Kelt does not.

#71 Shawn Allen on 07.13.19 at 11:26 am

The refrain of those who missed out is…

Tyberius at 36…

If you haven’t sold what you bought, you’ve made zilch! All ‘paper gains’ my friend. Only when you realize the gain is it a true gain.

*************************
If you missed out on big gains on a house or especially if you missed out on huge gains in equities over the decades while your friends prospered, use the above refrain. It’s handy and soothes your self esteem.

Sour grapes, my friends.

#72 Neonelements on 07.13.19 at 11:49 am

I’ll admit I have a small emergency fund of 10,000. The reason is simply psychological. It allows me to follow Garth’s other advice of ignore the markets. By just having that money it allows me to say calm when the volatility storms come. So what if the market goes down, I still have cash on hand if needed. If 10,000 is enough to keep me from panicking and selling into a storm or buying GIC’s then I feel it is worth it. The compound interest lost on ten grand is better than the much bigger paper losses I’d probably sustain without the emergency fund.
By indulging my emotional side on this smaller thing, it lets me be more rational when the chips are down.

#73 Ponzius Pilatus on 07.13.19 at 11:53 am

DELETED

#74 Vampire studies on 07.13.19 at 11:53 am

60 expat – how do you know he is underwater?

#75 Darren Thompson on 07.13.19 at 11:54 am

I know most people are bragging about low mortgage rates 2.44%, 2.59%, 2.8% etc. but unless you have a low mortgage balance but if your buying a house in the GTA or Vancouver for $800,000 to $1,200,000 even at 2.8% sorry to say you still got sucked.

House prices are so inflated and out of whack of where they would be at 8% to 10% mortgage rates that 35% to 45% or as much as $540,000 is really prepaid interest. It may look like a great deal paying $30,000 to $34,000 a year interest on such a high mortgage balance but paying $30,000 a year less in interest versus having as having as high as a $540,000 extra mortgage balance is robbing Peter to pay Paul. Don’t forget also the higher mortgage insurance, house insurance, property taxes and assessment value taxes because of this inflated housing price and mortgage balance. People look at only the rate and that is it which is a real big mistake.

#76 crowdedelevatorfartz on 07.13.19 at 12:00 pm

@#67 Truthmonster

Ahahaha.
Is that what we’re calling paranoid, libelous, spittle flecked, nonsensical ravings on the internet these days……..

#77 Why Hate Banks on 07.13.19 at 12:03 pm

On Friday it was like a nightmare that came my way on the phone. It took three guys to figure out how to make a simple transfer from portfolio to my branch bank. At 3:30 PM figured out something went wrong, because needed that cash on Saturday morning. I phoned back and got a pro, and told him the story, and to check it out. Sure enough it was messed up. He asked me how much was needed, and told me seconds later its in your branch account now, and to look now. It was there.

#78 Ding Dong on 07.13.19 at 12:19 pm

Garth must suck to be you. The globalist dream is dying and everything you have worked a lifetime for. The xenophobes and deplorables won…bahahahaha

News to me. – Garth

#79 TurnerNation on 07.13.19 at 12:30 pm

At the intersection of liberalism, socialism and UN Agenda.
Liberty Village Toronto jam packed with kandos and more on the way. Only two streets in/out and a long walk to transit. You are trapped.

Makes sense to drop a shelter for aggressive homeless drug addicts into it right? Kaboom…get used to this “densification” and supporting “marginalized” people at your expense.

What could go wrong:

https://www.blogto.com/city/2019/07/toronto-neighbourhood-respite-centre-crime/

https://www.cbc.ca/news/canada/toronto/st-felix-respite-liberty-village-break-ins-1.5202039

Get ready for more respite centers, migrant centers and
safe injection sites in your areas.

Remember to flip their words 180. “Safe spaces” means UNsafe spaces

#80 crowdedelevatorfartz on 07.13.19 at 12:34 pm

@#37 Oh Canada
“When will people get it that the cash grab is real, climate change emergency, total BS”

+++++

Gratuitous cash grab by govt?
Possibly.
Warmer temps?
Definitely.
Still refuse to admit the planetary weather is dramatically changing?

Tell that to the dead salmon in Alaska.

https://www.citynews1130.com/2019/07/13/record-warm-water-blamed-for-salmon-deaths/

Tell that to the dead coral in the Carribean and Australia’s Great Barrier Reef.

https://oceanservice.noaa.gov/facts/coral_bleach.html

Oh right.
Its happened thousands of years ago, so whats happening now is a normal cycle…. no big deal.

Unfortunately there are about 7 billion more people on the planet than 100,000 years ago that need food….and if you think one country is going to let its people starve when another country has excess food and clean water…… keep dreaming.

#81 crowdedelevatorfartz on 07.13.19 at 12:38 pm

@#73 Pontificating Prattle
Deleted
+++++

Too much caffeine this morning Ponzie?

#82 crazyfox on 07.13.19 at 12:41 pm

#47 Oh Canada, I weep. on 07.12.19 at 11:10 pm

You indirectly called me an idiot. Self projection is a difficult thing for some to grasp. Some just don’t have the scientific background or the tools in the shed so to speak to get why. Certainly the genre within mental health conditions would be a good place to start:

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

But I digress, you can fix yourself later. Its the copycat readers who think its cool to mimic unhealthy behavior (look at that, I watered it down for you) and bereft of the facts, think it cool to monkey see monkey do and parrot foolishness, products of our environment that we are! Case in point, Arctic sea ice:

https://psmag.com/environment/arctic-sea-now-prefers-thin-crust-ice-to-deep-dish

The Arctic is at its lowest sea ice on record in both volume and extent according to PIOMAS. And here’s the thing. We can tune into PIOMAS or NOAA and hear what they have to say… look at their models, look at DMI’s models… NASA’s… and Climate Re-analyzer and what we will realize in time is that most use up to date data and DMI for example uses 2 and 3 year forecast models that people like to spin for effect right, but what model is the best?

The models I ascribe to (everything is modeled, has to be for graphics and animation to display data and data projections to the viewer) is U.S. Navy sonar. It’s accuracy with Arctic sea ice volume specifically is the most up to date and accurate in my opinion and compares well with daily images coming from NOAA and Climate Re-analyzer in terms of extent but its ice volume that we are really after because without it, ice can vanish quickly and the Arctic is on thin ice.

Now… why did I take the time to describe the importance of accurate modelling for Arctic sea Ice? Because U.S. Navy sonar Arctic Ice volume models are not easy to find or share online. There are 2 individuals I know of that share it, one on twitter and the other on Facebook and I can’t share links of either on this site so if you have a Facebook account, sign in and search Arctic Sea Ice Forum and you will see the U.S. Navy sonar models I speak of. What you will see is an Arctic ocean that should make headlines at the end of the year for record ice melt once again or should make headlines. Media focus is on extent but the way extent is defined (15% sea ice or more) is slush counts meaning extent can be deceiving. It can be like lake Superior, one week the ice is there and the next its gone but again I wander.

Go to Facebook and see it for yourself “Arctic Sea Ice Forum”, its difficult to not conclude anything other than we are headed for ice fee Arctic ocean summers no later than 2023 and as soon as 2021.

Climate change… 40 years ago, the Arctic ocean melted for just a few days a year. Today? The majority of the Arctic cap begins to melt by mid May. Here’s what it is like now:

https://climatereanalyzer.org/wx/DailySummary/#t2

Most of the Arctic is in a 24 hr melt now for at least 10 weeks of the year… maybe more like 12 now?

Why does it matter if the ocean goes ice fee in summers and in time may not freeze up at all? Jet streams:

https://climatereanalyzer.org/wx/DailySummary/#ws250-snowc-topo

If you look at the world map you will see that the Northern Hemisphere has much weaker jet streams in the North as opposed to the south because of a reduced temperature gradient. As the Arctic continues to warm, the jet stream continues to weaken. Humor me and follow climate re-analyzer for a few weeks and watch what happens to water temps with the ice gone in Hudson Bay for example or, the coast of Alaska right now:

https://climatereanalyzer.org/wx/DailySummary/#sst

Buoys are tripping sea temp records off Alaska as we speak. What I’m saying in lamen terms is that we can start expecting Arctic sea temps to hit 10 degrees or higher, possibly 15 across the entire Arctic by 2025 or sooner.

What is that going to do to atmospheric temps in the North? How much shorter and milder will winters be? Accelerated melting permafrost? Slower jet streams exaggerating flood and drought (I so fear for BC’s forests)? Greenland ice melt? Invasive species? I mean… its getting weird already:

https://www.noaa.gov/news/us-has-its-wettest-12-months-on-record-again

But what I am telling readers is we are headed for a new climate state with a new set of amplifying feed backs. Albedo, latent heat, methane and carbon release from rotting biomass and sea hydrates and couple that with continued human pollution of green house gases…

I am talking about our climate entering a new climate state in just a few short years that is full of acceleration and we could do something about it but with the general lack of knowledge and empathy and surplus of blinding greed coupled with the leaders we have at present, we won’t collectively stop this from happening. All readers can do now is let it sink in.

Enjoy the last few years of so called normal. Don’t give up your day job, this is a slow moving train wreck that will take 3 decades give or take to play out to its ugly conclusion. Make peace with certain realities and find a way to live with it. Our choices still count and I do stress, find a way to live with it, live with ourselves. Being free of conflict within is the way. Btw, “Oh Canada I weep”, you won’t find that calling people idiots with the wave of a hand.

#83 Vision on 07.13.19 at 2:10 pm

People buy houses because interest rates are low. Their monthly payments are a manageable. Get that.
But if you have a loan for $800,000 , amortized over 25 years.. those rates will not be low forever. And you still owe that money when rates may be 5% or 10%.
Why don’t people get that? They keep buying houses on putting on more debt. I do not get that. If you decide to sell your house ( debt) if rates are not manageable, then so will others be doing the same thing. What they may sell it for may be less than their debt. Why do sheeple not get that?

#84 NoName on 07.13.19 at 2:51 pm

#82 crazyfox on 07.13.19 at 12:41 pm

Enjoy the last few years of so called normal. Don’t give up your day job, this is a slow moving train wreck that will take 3 decades give or take to play out to its ugly conclusion. Make peace with certain realities and find a way to live with it. Our choices still count and I do stress, find a way to live with it, live with ourselves.

Did you wrote that for your,as a form of self encouragement affirmation? And people thin i am silly…

#85 Sandy Hanson on 07.13.19 at 4:04 pm

Anytime someone or some government, organization etc. tells you you have to pay more for your own good, run, run fast, run far, run far away.

Remember acid rain in the 80’s, 90’s. We are still here, we are not dead. It is a big scam.

#86 S.Freud on 07.13.19 at 7:01 pm

#65 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 07.13.19 at 9:26 am

Come on cowboy. Everybody know you are in love with all things Toronto. We saw you with your Raptors jersey at the big bash when the Raptors won it all. This reverse psychology shtick you keep going on this blog is fooling nobody…

#87 acdel on 07.13.19 at 8:19 pm

#82 crazyfox

I understand what you are saying; but for God sake understand what is really going on. Climate has always changed; pollution is the Western world is incredibly better then it was in the 70’s with many more people. Canada has done all it can if you expect the same life style; if not, in minus 30 temps enjoy heating up your space with cut down trees just to keep yourself alive.

Seriously dude or dudette; get a grasp!!

Save the world; plant a fricken tree and look after it!

#88 Robert Ash on 07.13.19 at 10:44 pm

I would find it useful to have a Discussion on Investing as it relates to Exchange rates, and the impact of currency flucuations.
Doug’s Chart shows, Investments, in Euros, USD, USD, and only a small percentage in CAD. How are Investors, factoring, for example, the mild predictions, the CAD, is gaining on the USD. The currency strategies of many Central Bankers, can influence a Portfolio’s performance. Any comments or suggestions, would be appreciated.

#89 Mio on 07.14.19 at 7:06 am

Ah yes, when you are in a jam an unemployed, put all your faith in a demand loan made by a big bank. What could go wrong?