Balance

Last year, when Bay Street was hobbled, bruised and unloved, a certain pathetic blog suggested you heavy up a bit on maple. Hey, that’s what rebalancing is all about. Set the correct weightings, then corral them back into line when they stray. Thus, a plop in Canadian assets rendered them underweight. The correct move was to sell the portfolio winners, harvest gains, and buy the losers – just the opposite of what your brother-in-law does.

Today you know why. The TSX has swelled more than 18% this year. The index just hit a record high. For the first time it will cross the 17,000 mark, thanks to oils and banks. Despite being led by questionable people, two of whom love turbans, the country’s actually doing okay. No wonder the central bank’s in no rush to drop rates. And this is why we took a little money off the table in the US last year and plunked it down on Canuckistan. Totally counter-intuitive. And smart.

No matter how smart you think you are, it’s impossible to forecast what sectors or assets will crash or soar a year from now. So don’t sweat it. Own them all, but in weightings that make sense. And when those proportions are thrown off track, bring them back. Take the profits and purchase bargains.

By way of contrast, the Dow is ahead 16% and sits 4.5% higher than a year ago. Bay Street has bested that with an 8% year/year advance. Balanced and diversified portfolios which shed 2-3% in 2018 (thanks to you-know-who) are ahead almost double digits in 2019.

But, I hear the steerage section cry, what about a recession? Won’t markets fall because they just hit new highs? Don’t guys like David Rosenberg have a point and shouldn’t we be wallowing in cash?

Nope. Bad advice. A downturn will surely come one of these days and last for a while. Stocks will fall. Bonds will go up. Volatility will increase. Headlines will be dire. It could even happen as 2019 draws to a close. The best defence is a portfolio kinda like your all-weather tires. Sun, rain, snow – who cares? The weather may slow you down, but it won’t send you careening. That’s why you have balance. And this blog.

Now, what would the day be like without a needy reader? So here’s Wendy , living on Vancouver Island and wondering if her husband is nuts, or just hangs with the wrong crowd…

Long time reader (my dad got me hooked), but rare commentor and now I need to make some decisions. (Feel free to blog this if you want). Bought house in spring of 2015 for $285k and managed to snap up a home from a desperate couple and paid what we felt was a great price for a great home. Fast forward 4.5 years. It’s time to do some big fixes and we don’t have the capital to finish. House has potential to be worth significantly more if we do the fixes, a house the same age and condition on street but 1/2 the size sold for $410 this past spring (we have ocean views and sit next to a never to be developed ravine at the end of a street).

The plan was to remortgage for $360k and take the difference and use that to finish all the projects (or $300 and HELOC for $60) but hubby has been talking to coworkers and they have heard that you can take a HELOC out for the full value of the home, and then instead of making the same payments, make only the interest and then invest the difference. Once enough time has passed and enough growth has happened, pay off the mortgage and have a sizeable chunk left invested. This sounds too good to be true and I am concerned that we’re missing some hidden catch. Since I’m the one that controls most of the finances, I want to make sure we’re making the right decision and not just going off on a ledge.

As always, here is the largest of the fourlegged fur family member. Timber is a part Saint Bernard, a rescue and the only dog I’ve ever owned. She is super amazing and has set the doggie bar so high, I don’t think any other dog would measure up. She turned 10 this fall.

Borrowing against the equity in the house to fix the house is not a bad idea, since rates are relatively reasonable and you’ll possibly be adding value to the place. But, but, but – it sounds like you don’t have any other funds, so this is just a debt grab. Do you really need to do this work? Does Timber care?

As for your hubs, they must be spiking the coffee pods at work.

The maximum amount one can borrow on a HELOC is 65% of the existing equity, and for that you must have an appraisal. Therefore: appraised value minus outstanding mortgage principal = equity x 65% = max HELOC. This can be pushed to 80% of value, but the additional amount must be in the form of a traditional amortized mortgage. Payments for the line of credit portion can, indeed, be interest-only, but the mortgage hunk requires blended payments And remember that these days HELOC rates are a helluva lot higher than those for a mortgage – about 4.5% vs 2.5%. Additionally, the line is a demand loan at a variable rate. It can rise when rates head back up, and the bank can (conceivably) yank it at will. Unlikely but worth knowing.

The bottom line: a mortgage is ultimately cheaper and forces repayment. No, you can’t get a HELOC for 100% of the value of the house. Interest-only payments mean the debt remains and will have to be retired at some point. And you should expect interest rates to rise in the future, since we’re at the bottom end of the curve. If they don’t because the economy tanks, then the odds of your unrepaid HELOC being recalled by the bank shoot higher.

Here’s a rad thought, Wendy: if you don’t have any money, maybe you shouldn’t spend any. Ask your dad.

85 comments ↓

#1 Mr Fundamental on 09.20.19 at 3:41 pm

A mixture between US and Canadian equities makes sense and is smart. When it comes to balance, I prefer to rebalance by adding new money, as opposed to selling.

There is no need for bonds in any portfolio IMHO. Especially when interest rates are extremely low.

Have a great weekend!

Nobody holds bonds to earn interest. (Why does have to be repeated so often?) – Garth

#2 paul on 09.20.19 at 3:44 pm

Justin, back to banning assault rifles I guess he didn’t get the memo they are already banned. maximum rounds in a hunting gun magazine is 5.
The shooting in Toronto are done by prohibitive owners, and smuggled guns. He should but on his Aladdin outfit and make a wish.

#3 Flop... on 09.20.19 at 4:19 pm

I was bored enough to watch the Liberals gun safety platform.

Spent most of my time checking out the body language of the people in the background.

Bill Morneau seemed pretty comfortable and comatose.

Chrystia Freeland seemed uncomfortable taking deep breaths multiple times and glancing sideways.

He had quite the cast behind him.

Wonder if any kids were yelling at the t.v.

Look! There is Ali Baba and the 40 thieves…

M45BC

#4 JSS on 09.20.19 at 4:23 pm

Have there been any more blackface instances in the last 24 hours.

#5 zah on 09.20.19 at 4:25 pm

hi
For HELOC, does the lender also look at your income to see if you can carry the additional debt.
thanks

#6 islandgirl on 09.20.19 at 4:27 pm

Thanks Garth, I did end up talking to my dad and he agreed that the heloc plan was risky and didn’t recommend it. Unfortunately the work needs to be done, and we don’t have the funds to do it on our own. (ants in the roof causing leaks and ants in the siding). We’re leaving all the prettifying to when we actually have the cash. When I reviewed how much I would need between the mortgage and a heloc, we came to 80% of what we think the current value of the home is. In the end I’m leaning towards a mortgage of 300 and a heloc for the remaining 60 since we don’t need it all right away (just the roof needs to be done first). That means we’re only adding 60 on to our current mortgage (to round up all the debt into one easily servicable payment (that will pay down faster). I appreciate your input!

#7 Flop... on 09.20.19 at 4:32 pm

Buying 2 litres of ice cream in a paper box sucks.

I’m always scared when I’m away the power will be off long enough to leave a screaming mess.

Some items just need plastic until something else comes along.

My new plan involves scoffing down all the ice cream in the fridge- freezer just before leaving for the airport.

Makes for an interesting flight, I keep my seatbelt on.

No one needs to see my ice cream float…

M45BC

The $79 Billion Plastic Item Exports Industry, Visualized.

Have you ever wondered where your plastic comes from? You may assume it comes from previously recycled waste, but it turns out that less than 10% of the world’s plastic is actually recycled. Far more of it is discarded, often shipped overseas. But policy changes in recipient countries are making waves in the global waste management market.

Global plastic item exports were valued at $79 billion in 2018.

The top four countries in exports alone (China, Germany, US and Italy) make up over half the plastic exports.

Countries are scrambling to find places to ship plastic as China, a traditional recipient, has banned further imports.

Regulatory changes worldwide have spurred changes in the plastic management market.

The data from the International Trade Centre shows the total market value of plastic item exports for 2018 in U.S. Dollars. Our visualization is a map of this global market, with countries drawn to scale according to their exports. A darker shade of blue also indicates a higher export value. Only countries with more than $10 million in exports are mapped.

Top 10 Exporters of Plastic Items

1. China: $19.54B (24.73%)
2. Germany: $9.89B (12.51%)
3. United States of America: $7.23B (9.15%)
4. Italy: $3.32B (4.20%)
5. France: $3.00B (3.79%)
6. Poland: $2.29B (2.90%)
7. Netherlands: $2.17B (2.75%)
8. Japan: $2.17B (2.74%)
9. Czech Republic: $1.97B (2.49%)
10. Mexico: $1.96B (2.48%)

If so little of the world’s plastic is recycled, then where does it end up? Just five countries export over half of the world’s plastic items: China, the United States, and three western European countries. In fact, China itself makes up nearly a quarter of the exports market. But as early as 2016, China imported two-thirds of the world’s plastic waste exports.

So, what changed? To fight pollution and overfilled trash sites, China in early 2018 banned plastic waste imports, a defining moment in the shifting plastic waste exports industry. Other industrializing countries are beginning to follow suit in cutting back on plastic waste: for example, India just this week passed a sweeping ban on single-use plastics. It has already banned plastic waste imports. Industrialized countries are also cutting down on plastic waste: various plastic bans exist across the United States, and Canada is set to instate a ban on single-use plastics by 2021.

All the same, the world currently uses millions of tons of plastic, and it all has to go somewhere. Unfortunately, many of the developing countries which accept plastic imports, especially in the wake of China’s ban, do not have strict regulations on how to deal with this waste, and much of it ends up in the ocean. These countries, overwhelmed by the influx of plastic, do not have the infrastructure to process it.

To curb the possibility of irresponsible overseas plastic disposal, Australia has begun to ban plastic waste exports and Canada may be set to follow. On top of that, 180 nations agreed on a new UN accord to regulate the export of plastic waste.”

https://howmuch.net/articles/plastic-trade-around-the-world

#8 RRSP on 09.20.19 at 4:36 pm

Garth, is it possible to convert to existing RRSP with high income earner, to spousal RRSP (considering spouse having lower income tax bracket ) , or should it be a new RRSP account for that (considering the lower income does not have one yet) ?

#9 Marc Roger on 09.20.19 at 4:42 pm

If you don’t have any money, maybe you shouldn’t spend any.
How un-Canadian.

#10 Mattl on 09.20.19 at 4:44 pm

Garth – through most of last year you openly shared YTD returns on your balanced ports. Haven’t seen any numbers this year. Assuming that re-balance has been good to you. Can you share what 2019 has looked like?

#11 Mattl on 09.20.19 at 4:45 pm

Sorry, I just saw you wrote a little over double digits. That is in line with my balanced returns.

#12 Mr Fundamental on 09.20.19 at 4:46 pm

“is it possible to convert to existing RRSP with high income earner, to spousal RRSP (considering spouse having lower income tax bracket ) , or should it be a new RRSP account for that (considering the lower income does not have one yet) ?”

I’m pretty sure you need to open a new spousal account — can’t just convert it across. However, once you are 65 then you can split income from RRSP, RRIF, life annuity, and other qualifying payments.

#13 crowdedelevatorfartz on 09.20.19 at 4:48 pm

Speaking of Victoria.
Finished work early today……
Went for a walk along the Trans|Canada Trail over the Gorge footbridge.
Warm , sunny, and I get paid the full 8 hrs…..a win win.

#14 Lee on 09.20.19 at 4:53 pm

Markets do not always bounce back quickly. In 2001 the TSX fell over about a two-year period by about 50% in total and it was about mid-2006 before it made it all back. I suspect that is as long as one would have to wait it out today. As long as you keep investing on the way down it is probably not all that bad and you are about back at break even in a few years. Buying on the way down also of course increases the dividend on each block purchased, which helps. I am not sure what bonds did during this time.

What did I say about diversification? Maple at 20% is lots. – Garth

#15 S.Bby on 09.20.19 at 5:02 pm

#6 islandgirl on 09.20.19 at 4:27 pm

If they are carpenter ants, they like water so you have water leaks that would need to be fixed.

#16 Not So New guy on 09.20.19 at 5:05 pm

This is the problem with leftists. They don’t ever seem to have a problem with hypocrisy once they are caught out. That shows they don’t understand basic ethics, only situational ethics. Thus, you can’t trust them in anything they say or do. They will justify whatever they do once they decide they want something and they need to step over someone else to get it. They can’t be trusted with power and they can’t be trusted in business.

If you are going to do business with them, then you better get it in writing or get a solid contract written out. And what they say to get into power is meaningless. No ethics, no accountability, no trust, no deal.

#17 Leo Trollstoy on 09.20.19 at 5:12 pm

Chatted w David Rosenburg today at the crapshow MoneyShow … he’s pro bonds all day every day

#18 Ronaldo on 09.20.19 at 5:13 pm

The other thing that Wendy needs to keep in mind is the fact that real estate prices may be on the decline. If the only reason to do these renos is to increase the value of the home and unless they are able to do a lot of the work themselves my suggestion would be to do nothing. I know of people who have thrown tonnes of money into renos and when it came to selling, they were lucky to even get their money back. There are many scary stories out there where people have been hosed by contractors on reno work ( my neighbor for example). If they have made a nice capital gain, why take a chance on losing it.

#19 KB on 09.20.19 at 5:16 pm

Not that it matters to your advice, but you can get a HELOC rate at 3.95% at a major bank now (prime +0%).

My research does not indicate that. – Garth

#20 Smartalox on 09.20.19 at 5:27 pm

Bank of Canada report on HELOCs summarised in the Globe and Mail:

https://www.theglobeandmail.com/business/article-helocs-refinancing-helped-fuel-spending-bank-of-canada-researchers/

Canadian homeowners who accessed their home equity through a loan or refinancing helped fuel household spending in recent years, according to research by staff at the Bank of Canada.

Household spending moved in a similar direction to home prices over roughly the past decade, with both rising sharply in 2016 and 2017, according to a staff analytical note by several of the central bank’s researchers.

In 2017, the researchers found Canadian homeowners extracted $89-billion in home equity through these two methods, with more money – $49-billion – coming through HELOCs.

Borrowers used that money to pay for big-ticket items, such as cars and furniture, or to fund renovations, among other things, according to the research, which suggests this “has likely contributed materially” to this kind of spending in Canada in recent years.

The researchers found that by the end of 2017, this equity extraction could have added two per cent to consumer spending on durables and semidurables (goods that include cars and furniture), as well as 11 per cent to renovation spending.

The report found that translated into a 0.5-per-cent impact on the GDP level.

However, things changed in 2018. That year, the amount of equity homeowners extracted from their properties fell and that could have had a negative impact of 0.1 per cent on the GDP.

“If this collateral effect is strong, it could leave the economy more vulnerable to adverse events, such as a large decline in house prices,” the note said, adding the absence of equity extraction can exacerbate spending cuts in bad times.

People who use their homes as ATMs may finally be running out of money. Things will get worse as:
– House prices fall
– Banks start ‘demanding’ repayment of HELOC loans
– Retail and Service Industry jobs dry up due to decreased consumer spending

Of course, some proportion of this ‘remortgage and HELOC market’ probably also consists of money laundering and foreign ‘cash parking’ operations, where homes purchased with tainted cash, or ‘one time gifts’ between spouses or to family members who have little declared income in Canada are then used as collateral for extensive loans of ‘legitimate’ cash, which can then be spent on luxury goods, and high-end sportscars.

Still, by most estimates, the ‘laundry’ trade is at worst, $10 Billion. That leaves $79 Billion for the nation’s homeowners to pay back.

#21 Lisa on 09.20.19 at 5:31 pm

Final paragraph is a bit harsh, Garth. She sounds more level headed than her hubby.

Agreed. – Garth

#22 Spectacle on 09.20.19 at 5:49 pm

#15 S.Bby on 09.20.19 at 5:02 pm
#6 islandgirl on 09.20.19 at 4:27 pm

If they are carpenter ants, they like water so you have water leaks that would need to be fixed.

—————– Good point ———
1) there is a Roof Coating, sprayed on as a rubberized membrane , to solve the roof leaks. There are reputable companies that shoot this all day. Very thick, pick a colour. They spray inside of hydro dams etc with similar products.
2) get an excellent commercial exterminator : Ants Gone.

Ps: selling your place with a Tax free gain ( once in a lifetime some say) and rent in a pro managed building. A beater fixer upper home will sell at a much better ratio, than if you “try” to renovate for a greater ratio gain. Not always going to happen. The renovator/contractor will make money from Your house, guaranteed.

#23 RRSP on 09.20.19 at 5:53 pm

#12 Mr Fundamental on 09.20.19 at 4:46 pm


Thank you !

#24 The Flying Foxtrot on 09.20.19 at 6:03 pm

Canuckistan…

Garth, when does your standup show start?

#25 45north on 09.20.19 at 6:15 pm

Paul: Justin, back to banning assault rifles I guess he didn’t get the memo they are already banned. maximum rounds in a hunting gun magazine is 5. The guns that did the shooting in Toronto are banned.

He should but on his Aladdin outfit and make a wish.

pretty funny

#26 Penny Henny on 09.20.19 at 6:17 pm

Bravo on the maple call.
The emerging markets call has yet to pay any dividends though.

#27 Penny Henny on 09.20.19 at 6:32 pm

The plan was to remortgage for $360k and take the difference and use that to finish all the projects (or $300 and HELOC for $60) but hubby has been talking to coworkers and they have heard that you can take a HELOC out for the full value of the home, and then instead of making the same payments, make only the interest and then invest the difference.-Wendy

???????????

Are you sure Hubby wasn’t talking to the stripper from The Big Short?
The one who had multiple properties and 3 nipples?

#28 Ronaldo on 09.20.19 at 6:34 pm

#22 Spectacle

Ps: selling your place with a Tax free gain ( once in a lifetime some say) and rent in a pro managed building. A beater fixer upper home will sell at a much better ratio, than if you “try” to renovate for a greater ratio gain. Not always going to happen. The renovator/contractor will make money from Your house, guaranteed.
——————————————————————
I totally agree.

#29 Flop... on 09.20.19 at 6:35 pm

I’ll put my furry backside back in the real estate slingshot for the greater good.

Won’t show any of the big losses that have recently happened, but one of my old cases just came back on so we can probably use it as a fair marker to see where we are at.

It was purchased for 1.48 just before the detached peak in spring 2016

After trying to make a quick buck later that year they appear to have been renting it out in the meantime waiting for the market to recover.

It just came back on for 1.27 and the listing states it is currently tenanted for $2750 a month.

Let alone what they paid for it, if the new buyer pays full price with 20% down the mortgage payment required is around $4650, so the current sellers could be subsidizing by over two grand a month.

In spring 2016 this house at close to 1.5 would have been considered to be on the second rung of the ladder in Vancouver proper.

Now, three years later it would still be considered to be on the second rung but houses like this have been consistently going below 1.2

Still massively elevated but you can clearly see daylight between the two and this is down the bottom.

Excuse me now, Gotta put my ribs in the oven.

Pork ribs to be precise, not going to self-cannibalize…

M45BC

https://www.zolo.ca/vancouver-real-estate/2539-east-18th-avenue

#30 PROUD CANADA on 09.20.19 at 6:37 pm

DELETED

#31 Penny Henny on 09.20.19 at 6:42 pm

#6 islandgirl on 09.20.19 at 4:27 pm
Thanks Garth, I did end up talking to my dad and he agreed that the heloc plan was risky and didn’t recommend it. Unfortunately the work needs to be done, and we don’t have the funds to do it on our own. (ants in the roof causing leaks and ants in the siding). We’re leaving all the prettifying to when we actually have the cash. When I reviewed how much I would need between the mortgage and a heloc, we came to 80% of what we think the current value of the home is. In the end I’m leaning towards a mortgage of 300 and a heloc for the remaining 60 since we don’t need it all right away (just the roof needs to be done first). That means we’re only adding 60 on to our current mortgage (to round up all the debt into one easily servicable payment (that will pay down faster). I appreciate your input!
???????????

so when you say a house down the road in the same condition sold for $410k, was it also over run with ants?

#32 fishman on 09.20.19 at 6:43 pm

All that free stuff promised by lil potato starting to make me nervous. A pivot to banning peoplekind camo’d up in black & brown face spraying bullets around is reassuring everything be hunky dory.

#33 Trumpocalypse2019 on 09.20.19 at 6:48 pm

The USA is sending troops to Saudi Arabia immediately.

PREPARE.

#34 Cici on 09.20.19 at 6:58 pm

#6 Islandgirl

Hey, you’re back.

No use fixing the roof if you’re going to leave ants in the siding…won’t they just continue to populate and then make their way back up to the roof?

Spectacle’s suggestion regarding roof coating and an exterminator may be the best and cheapest solution available to uou at the moment…

Good luck, and do consider selling soon if you can do so for a gain and without dumping a ton of money into your place. After all, if you dump in another $360,000 on top of the $285,000 you’ve already forked out, your up to $645,000 not factoring in mortgage charges and future closing costs.

#35 -=jwk=- on 09.20.19 at 7:32 pm

We put 20+% down and every dollar in principal goes to our HELOC. So…thats more than 65%. Also variable, currently at 4.45%.

If you are going to do business with them, then you better get it in writing or get a solid contract written out. And what they say to get into power is meaningless. No ethics, no accountability, no trust, no deal.

yes like those contracts Trump signed with his contractors, then simply refused to pay outright knowing his legal team would crush any attempt to sue. Great people to do business with, those conservative types are. …so honest and pure, so perfect.

#36 Douglas Scotts on 09.20.19 at 7:42 pm

This post is regarding the house tax proposal from the Trudeau Liberals and there money grubbing, socialist team including Bill Morneau.

Capital gains taxes by the left, socialists and other tax, spend, borrow incompetents always talk about the big gain over years and years from real estate and other equity type investments but what they don’t mention on purpose is all the inflation that has eaten up the value of that so called big gain, appreciation on that investment.

Adjust for inflation and see how really small that capital gain really is or is not as big as they so call claimed. This is why our education system and schools teach only crap and useless dribble and not really important item like taxes, inflation and other topics that really make everyday like more difficult and less affordable. The UN and all their followers are the main culprit with their politicians backing their horse.

#37 Cici on 09.20.19 at 7:45 pm

Back from a vacuuming break…party!

Sorry IG, I meant « future selling costs ».

Guess I need some JD to shake off the long, stressful week!

#38 Shawn Allen on 09.20.19 at 7:49 pm

I’m Not Sayin’… But…

Fascism definition on dictionary.com

Fascism: a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.

**********************
The other day a certain wanna be dictator said “We don’t want GM building plants outside of America”.

And I am sure this sentiment plays well with the base.

Well, who is this “we”. General Motors is not owned by the government or the people of the USA. It is a for-profit company owned by Americans and by many other people around the world.

But the leader of the so-called free market USA wants to dictate where it builds plants. Interesting.

#39 Nonplused on 09.20.19 at 7:52 pm

I don’t know what renos “Wendy” is planning, but $360,000 seems a lot. Me thinks she will never get that back if she sells. People just don’t pay for upgrades. They depreciate like cars.

There are some upgrades that must be done to preserve the integrity of the house. For example Asphalt shingles seldom last more than about 20 years, and when they go you need to replace them no matter what. If you have an old furnace (lower than 80% efficient), chances are you should replace it before it breaks in the middle of winter. Hot water tanks can be an issue. Siding can be an issue. PBE plumbing can be an issue. Insulating the attic can pay but not as much as a new furnace. Replacing the windows and adding insulation almost never pays but might save some monthlies.

But anything cosmetic or convenient is a waste of money. For example, if you have a lane and add a $30,000 2-car garage, you’ll add about $10,000 to the sale price. Many people see a garage as just a place to park and are fine parking outside. The demand isn’t there. You might redo a bathroom because the tiles around the tub have failed and the drywall is now wet, but buyers see that as just setting it right. A $30,000 kitchen reno might add zero if the new buyers don’t like what you have done and would rather have done the reno themselves. A new fridge won’t gain you anything unless it is the fridge the new buyer wanted. A hot tub or a pool might actually detract from value as the buyer doesn’t want to maintain it and doesn’t want to use it. (I know this is true, I had to cut a hot tub out of a sun-room with a demolition saw as part of a sale because the buyer had no use for it. The sun room was built to house the hot tub by the previous owner, and I used it practically every night, but the new buyer didn’t want it, she wanted to re-purpose the space. She thought I could take it with me wherever I was going, but there was no way to remove it without removing a wall, so it got cut up. Sniff.)

The sad fact is, folks, unless you are a professional remodeler up to date on all the newest trends, most of the money you poor into renovations is wasted. The buyer wants to do the renos themselves to their own tastes. So they won’t pay you for what you did.

When I remodeled the above mentioned place, I did get my money back. But that’s because house prices went to the moon! And I did most of the work myself, only hiring out for specialized work. If I paid myself and my wife $40 an hour each, I am not sure we made any money beyond the hourly wage.

Maintenance must be done, but most other renos do not pay. This is why most professionals buy inter-city dilapidated wrecks and tear them down to the foundation and build a totally new 3 story house on the old concrete, and sometimes build a new foundation too. They only pay for the land minus $20,000 to have a hoe and dump truck dispose of the building.

Maintenance pays. Renos do not.

#40 Long-Time Lurker on 09.20.19 at 7:57 pm

#130 DON on 09.19.19 at 11:03 pm
#36 Long-Time Lurker on 09.19.19 at 4:32 pm

>Here is a good explanation of those overnight loans.

Fed Pumps $75 Billion Into Financial System Again
by
JOHN CARNEY
19 September

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

Garth,

At what point does this become a problem and not stabilization? Forgive my ignorance on this subject.

>The problem is a credit crunch/lack of liquidity.

The U.S. Federal Reserve has to pump all this money into the financial system so the participants have the cash to do their deals. (They’re running short.)

Otherwise, interest rates are going to start going up based on market sentiment. (“I’ll offer you less. I’m short on cash.” “Screw you! No bid! Pay me more!”)

Which means the Fed (central bank) has lost control of interest rates.

The situation is a problem if the Fed does nothing but they’re obviously pumping billions of dollars of liquidity into the financial system.

What interests me is that central banks worldwide have kept interest rates artificially low for over a decade. So is the market finally going to say, “no bid,” and interest rates will rise despite central bank intervention?

I should have saved this for Ryan L. on Saturday. Hey, Ryan!

#41 just say no on 09.20.19 at 8:05 pm

New Video on home ownership and why it is a bad idea….he did not say anything about ants. https://www.youtube.com/watch?v=IibCp34AaJo

#42 Kelly on 09.20.19 at 8:20 pm

Repo madness continued in the US all week.

It’s getting scary people.

A few billion to tide the banks overnight at the start of the week has turned into a flood of billions.
The overnight interest rate , usually 1.75%, rose to 10% on Monday.

The FED loaned $65 billion Monday to smooth it over.

It has continued all week.

The total now? …the Fed is up to a total of $350 billion in just FOUR days and we are not done yet.

This is madness.
The banks are in trouble.

I am quite concerned that a varied, balanced fund will survive a total bank seizure.

Worry about an asteroid strike. Higher probs. – Garth

#43 Shawn Allen on 09.20.19 at 8:30 pm

Douglas Scotts at 36 commented on capital gains taxes being unfair if inflation is ignored

“Adjust for inflation and see how really small that capital gain really is or is not as big as they so call claimed.”

***************************************
Don’t worry, you also get to pay the tax in dollars that have been debased by inflation.

If the entire house price gain was caused by inflation would the fact of paying in debased currency wipe out the unfairness nicely?

Is that the math?

Just asking.

To answer my own question (who better to do so?) No, it would not wipe out the unfairness fully since you would be paying some tax even in debased currency when there was no real gain in real dollars. But the debased currency does provide a small offset.

I agree that ideally capital gains taxes should only be paid on the real after inflation gain. But then perhaps should be 100% taxable rather than 50% in that case.

#44 Yukon Elvis on 09.20.19 at 8:37 pm

Conrad Black nails it.

https://nationalpost.com/news/politics/election-2019/conrad-black-trudeaus-not-a-racist-just-a-hypocrite-and-a-weak-leader

#45 WUL on 09.20.19 at 9:17 pm

#39 Nonplused on 09.20.19 at 7:52 pm

Thank you for the effort on your comment. Good advice and informative, in my view. I have the worst backyard fence in the neighbourhood. An embarrassment. I am not going to replace it. The next owner can.

When I sell, I will not stage the place with the latest from the Brick and unlikely uplift in price, especially if days on market is long, even though the joint is not “magazine ready”. Prospective purchasers envisage how they will live in the place. They do not concern themselves with how the current owner is living. When prospective buyers see the trophy whitetail deer mount on my downstairs fireplace they might be repulsed. Tuff luck.

#16 Not So New guy on 09.20.19 at 5:05 pm

And to you, thanks for the pukeworthy comment.

#46 dakkie on 09.20.19 at 9:41 pm

Canada’s Most Splendid Housing Bubbles, August Update: Vancouver Spirals Lower

https://www.investmentwatchblog.com/canadas-most-splendid-housing-bubbles-august-update-vancouver-spirals-lower/

#47 leebow on 09.20.19 at 9:57 pm

#43 Shawn Allen

May be cap gains shouldn’t be taxed at all. Cap gain is not an income that I can spend until the money is withdrawn from the investment account.

#48 leebow on 09.20.19 at 10:04 pm

#44 Yukon Elvis

LOL. Sir Conrad Black? That man’s words you can trust.

#49 Long-Time Lurker on 09.20.19 at 10:48 pm

NY Fed to pump $75 bn into money markets daily through Oct 10

September 20, 2019

New York (AFP) – The New York Federal Reserve Bank said Friday it will inject billions into the US financial plumbing on a daily basis for the next three weeks in an effort to prevent a spike in short-term interest rates.

The Fed will offer up to $75 billion a day in repurchase agreements — exchanging secure assets for cash for very short periods — through October 10, it said in a statement.

In addition, it will offer three 14-day “repo” operations of at least $30 billion each.

Banks have struggled in recent days to find the cash needed to meet reserve requirements which has pushed up short-term borrowing rates, prompting the New York Fed to pump billions into US money markets with repo operations over the past four days….

https://news.yahoo.com/ny-fed-pump-75-bn-money-markets-daily-154943871.html

#50 Long-Time Lurker on 09.20.19 at 10:50 pm

Why is the Fed pumping money into the banking system?

By Natalie Sherman
Business reporter, New York
19 September 2019

The US central bank has pumped more than $200bn (£160bn) into the financial system this week – the first time there’s been such an intervention since 2008.

The Federal Reserve’s aim was to stabilise what is usually a calm part of the market.

Interest rates in the so-called “repo market” had shot up to 10% in some cases – although the cost of borrowing in that market more typically hovers around the benchmark rate set by the Fed – around 2%…

…But this week the cost of borrowing shot up – toward 10% in some cases. And the rate at which banks lend to each other – the Fed’s benchmark – exceeded 2.25%, the top of its desired range.

The rise prompted the Fed to take action. Four times this week, it injected money into the market, offering to buy up to $75bn in treasuries or other assets from banks in a bid to boost bank reserves and keep them lending….

https://www.bbc.com/news/business-49760502

#51 Long-Time Lurker on 09.20.19 at 10:53 pm

>No matter what the Canadian media says, Socks & Shoe Polish is finished politically. There’s no way any foreign government can respect or take him seriously any more. As if they did before.

Justin Trudeau’s star has lost its shine over blackface
AFP
Eric THOMAS
September 20, 2019

Montreal (AFP) – Racism or youthful indiscretion? Images published one week into Canada’s general election showing Justin Trudeau in blackface mark a low point in his political career, but it’s not clear if they’ve caused grievous harm to his re-election bid, experts say.

“Both in Canada and abroad, this affair has tarnished Justin Trudeau’s image that was carefully crafted by his Liberal Party as standing up for diversity and tolerance,” Stephanie Chouinard, a politics professor at the Royal Military College in Kingston, Ontario, told AFP.

“It’s a big blow.”…

…They quickly went viral, particularly in the United States where blackface is considered openly racist in mainstream culture. President Donald Trump said Friday he was surprised by the images — and “more surprised when I saw the number of times.”

Blackface dates back to about 1830 when white performers caked their faces in greasepaint or shoe polish and drew on exaggerated lips in a caricature of blacks as somehow inferior, ignorant, lazy and even animalistic.

“The image of Trudeau as a leftist icon will be especially harmed in the United States,” McGill University politics professor Daniel Beland said….

https://news.yahoo.com/justin-trudeaus-star-lost-shine-over-blackface-205456374.html

#52 Sebee on 09.20.19 at 10:56 pm

#7 Flop… on 09.20.19 at 4:32 pm

Thanks for the info. Quite informative.

Now it’s the consumer’s (our) turn to do something.

Stop consuming all this disposal useless product. Stop shopping at Dollarama with their piles of cheap plastic that brakes after one or two uses and goes to the garbage a day after being bought.

Let’s give our consumption some thought.

Oh…not a bad idea to stop eating at these fast food joints – not only is the food garbage so is the plastic.

And how about you start brewing coffee at home or at least using reusable cups? One cup of coffee…one lid in the landfill and this is acceptable?

And those iced drinks in all those plastic cups? When I was a kid you got a slurpee in a normal paper wax cup, now for some reason kids need clear plastic cups for this sugar garbage?

Starbucks Frappuccinos with 430 calories and 71 grams of sugar for starers giving kids diabetes, but in a clear plastic cup each and every time 100s of thousands of cups each day to boot. I’m looking at you Frappuccinos! We just have to stop buying this crap and shame it – just like we did with the styrofoam McDonald’s sandwich shells few decades back. Not only will your body thank you for saying no to this crap, so will your wallet and so will the planet. Win-Win-Win!

#53 Dumb Wealth on 09.20.19 at 11:12 pm

10yr US Treasuries yield about 1.7%. That’s a hefty spread over many other sovereigns – some of which have negative yields. There is an argument that yields in the US (and Canada) continue to fall.

As for stocks…I don’t think they’re terribly overvalued. Definitely not like 1929 or 2000.

https://dumbwealth.com/is-the-market-overvalued/

#54 isleofvanman on 09.20.19 at 11:48 pm

#38 Shawn Allen
so what if Trump wants to bring back an auto plant to the usa. he’s not forcing them at gunpoint to do it… he’s giving them economic incentives so what’s the big deal.

#55 acdel on 09.20.19 at 11:49 pm

Sorry Garth, just let me have this one last shot at T2 from the previous blogs; just, cannot help myself considering on how much richer and more technology advanced if he were never elected.
Anyways I kinda hope he downloads this app and reveals to the rest of the Canuckle heads out there what the outcome was. :)
Do not let the title of the article throw you off; just read it.

https://www.dailymail.co.uk/sciencetech/article-7480901/Fury-viral-ImageNet-app-gives-racist-labels-calls-people-rape-suspect.html

#56 IHCTD9 on 09.20.19 at 11:54 pm

#6 islandgirl on 09.20.19 at 4:27 pm
———

Get one of those pump up pesticide sprayers and mix up a strong bleach solution with water and a load of sunlight dish soap. Hose those buggers down for a week or two till they’re gone. Every nook and cranny. That liquid ant killer also works great – they take it to the nest and it eventually wipes them all out. The soap/bleach mix will also kill every other living organism that happened to have taken up residence in the roof/siding including mould, mildew, scabs etc.

Get on the Net, learn to roof. Easy as pie – get a Bostich RN46 Coil nailer to take all the work out of it. Do a 10k roofing job yourself for under 2k DONE. Just did it myself this spring, and a better job than any contractor would have done to boot.

Vinyl Siding is easy and cheap to do as well, plus you can use the same nail gun you just bought for the roof to do the job quick and easy. Rip that old wood stuff off and go vinyl – never worry about it again.

They way I see it, you don’t really have a problem. Roofing and siding (plus soffit/fascia also) are some of the easiest, and most gratifying jobs a homeowner can tackle all by themselves on their own home.

#57 Not So New guy on 09.21.19 at 12:15 am

@#45 WUL on 09.20.19 at 9:17 pm

It was my pleasure.

As the saying goes:

If the shoe fits…

#58 rargary on 09.21.19 at 12:19 am

use your heloc and call an exterminator! how do you sleep at night with an ant infestation! geez

#59 NoName on 09.21.19 at 12:26 am

those dutch people loste their mind or did they?

https://www.youtube.com/watch?v=LjAsM1vAhW0

#60 TurnerNation on 09.21.19 at 9:56 am

#16 Not So New guy maybe not your best screed but as this weblog is not a-priori apolitical I will mention another comment of mine in the wake of T2 buffoonery:

That it’s the Left wearing buttons such as Equality for all; or Income Security; or Social Justice now.
When really it’s a soft sell on communism: two tiers, the favoured haves and pets of the elite, and have nots – cast(e) out by their beliefs.

Whereas, Conservatives need wear no buttons. Why? Notions like Family Values, Hard Word; Earning Respect that are built into their moral fiber reflect in their actions. Enough said.

This country? A femminist blogger is alarmed over Stats Canada changes to mis-report crimes and gender. Putting women at risk with the underreporting of who’s committing crimes against them. A two-tiered system, some animals are more equal http://aprilhalley.com/
Virture, unsignalled by this government.

#61 LP on 09.21.19 at 10:09 am

#45 WUL on 09.20.19 at 9:17 pm

I’m with you. The only “staging” worth its weight is the money spent on a great cleaning service. If the place is spotless top to bottom, including in- and outside all appliances, and all closets and kitchen cabinets, it will appeal to whatever buying cohort looks at your place.

And no smelly laundry, revolting litter boxes, yards with doggy landmines, weeds in the sidewalk cracks. All the staging in the world with cheap rented furniture won’t make up for filth and disarray.

Don’t attempt to cover up odors with those aroma diffusers either. Some people are allergic even to those. Just open a window a crack in every room, that is, unless you live down wind from a fertilizer producer or a pulp mill.

Properly priced a spotless home will almost sell itself.

#62 Sail Away on 09.21.19 at 10:30 am

#38 Shawn Allen on 09.20.19 at 7:49 pm
I’m Not Sayin’… But…

Fascism definition on dictionary.com

Fascism: a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.

**********************
The other day a certain wanna be dictator said “We don’t want GM building plants outside of America”.

And I am sure this sentiment plays well with the base.

But the leader of the so-called free market USA wants to dictate where it builds plants. Interesting.

————————————–

You’re throwing around some heavy words there, friend.

Suggesting GM build in the US is not forcibly regimenting industry. GM got a giant US govt bailout a few years back.

#63 Dina Puglia on 09.21.19 at 10:55 am

Don’t forget all the property taxes, improvements and other capital costs that lower your capital gains. I would not be surprised that once you add in all your expenses, real estate commission, H.S.T., lawyer fees, property taxes, inflation per year the real capital gains is only about 2% to 3% per year at most or 20% to 30% over 10 years This is not even including income taxes, capital gains taxes in this case.

So Vancouver and Toronto real estate isn’t the big money maker they so hype it up to be.

#64 IHCTD9 on 09.21.19 at 10:57 am

#60 TurnerNation on 09.21.19 at 9:56 am

——-

I’ve always got the popcorn ready for the latest bout between the third wave feminist and transgender activists. This is the current front line where the social progressive train is laying in the ditch. It’s pretty clear that these two groups will not ever be able to get along – and that blog link shows just another new incident where the feminists (who once championed the rights of transgenders) have slammed into reverse after realizing the implications of said rights.

Whether it’s Jessica Yaniv dragging 15 cisgender Women in front of the BC Human Rights Tribunal for refusing wax her still male junk, or having violence against Women statistics in Canada suddenly becoming useless on the demographic front, or even just a young guy deciding to save himself a grand per year on car insurance by identifying as female – ALL of it drives the feminist activists up the wall.

The genie is out of the bottle (cough!), and IMHO, if all this gender self reporting continues to become enshrined into law and policy, we are going to keep seeing some pretty hilarious things happening that will be taken seriously, things you couldn’t dream up.

The big question for me is, when will we see cisgender males deciding to cash in on the considerable benefits assigned to Women in Canadian society, just by identifying as female “as required”?

Whatever happens, at least for a guy like me – it’s going to be the best comedy show on the planet!

#65 Don Guillermo on 09.21.19 at 11:03 am

#125 Sail Away on 09.19.19 at 10:05 pm

#98 baloney Sandwitch on 09.19.19 at 8:04 pm
Big fuss for nothing.

First its brown face not black face. Big difference. Most brown people in Canada are of South Asian (India etc.) descent. There is no history of slavery like in the US.
Second, Mr. dressup was in a arabian night theme party – so he dressed up. So what.

——————————

Yes, exactly. I’m reposting this just so it appears again. Get perspective, folks.

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

And as much as people want to re-post for perspective, it has nothing to do with racism and has nothing to do with what Scheer may have or have not said 10 or 20 years ago and for once (hopefully) he can’t even blame Harper. Do most intelligent people think he’s a racist? Of course not. They think he’s an idiot. It’s about an egotistical narcissistic virtue signalling clown who’s been lecturing Canadians for 4 years on political correctness and how “WE” can do better and who’s damaged or ruined many peoples careers for doing similar or much less. I think he actually believes he’s the second coming of Christ. If he is still reelected because Canadians on the left are blinded by anything Trudeau does or says, so be it, our country will take a very bad turn. The only positive is that his main goal (which has nothing to do with Canada) of shining on the world stage in the UN or anywhere else is shattered.

#66 Sail Away on 09.21.19 at 11:31 am

#38 Shawn Allen on 09.20.19 at 7:49 pm

Fascism: a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.

**********************
The other day a certain wanna be dictator said “We don’t want GM building plants outside of America”.

And I am sure this sentiment plays well with the base.

Well, who is this “we”. General Motors is not owned by the government or the people of the USA. It is a for-profit company owned by Americans and by many other people around the world.

But the leader of the so-called free market USA wants to dictate where it builds plants.

—————————————-

Strong words, Shawn, and unfair.

GM is in fact a US-based company that received a huge US govt bailout a few years ago and are being offered incentive now to build in the US.

There is no forcible regimentation.

Ben Graham and Warren instruct you not to speculate. Why are speculating here?

#67 S.Bby on 09.21.19 at 11:42 am

The blackface scandal is quickly dying down as the left is giving Trudope a pass on this one because he is one of them. If this was Andrew Sheer or anyone else to the right side we’d be hearing of the outrage for weeks on end.

Why can nobody spell “Scheer”? – Garth

#68 Basil Fawlty on 09.21.19 at 11:49 am

If the US economy is strong, as suggested by mainstream financial commentators, why is the Fed pumping $75B per day into the banks?
Is it possible that the current rates of inflation, unemployment, interest rates and precious metals prices, are all manipulated?

If you doubt this consider that JP Morgan is currently under criminal investigation for rigging the precious metals markets.

The Fed provides liquidity to stabilize markets and control the cost of money. It does not “pump $75 B as day into banks”. It you’re going to be your typical long-term alarmist, at least be accurate. – Garth

#69 Shawn Allen on 09.21.19 at 11:54 am

Overnight U.S. bank lending rates shooting up?

I would say this is something to be concerned about. A possible canary in the coal mine. The possible start of a lenders strike for higher rates. But I don’t claim to understand it.

I first learned something about “repo” markets about 30 years ago in MBA classes. I also see it features prominently in the balance sheet of the Royal Bank and presumably other large banks. In all these years I have never really understood it. In reading Royal Bank’s annual report for years, never have I seen a plain language explanation of what this is all about. Royal bank gets involved as both borrower and lender in these markets on the same night! The notion of borrowing money overnight always struck me as a bit weird to say the least. If you borrow money “overnight” every night it seems to me you are really borrowing longer term. You are taking the risk that one night the lender won’t want to lend the funds to you (or won’t have the funds available).

Warren Buffett / Berkshire has billions in short-term cash. If overnight rates spike can he get involved as a lender? Maybe not as Berkshire is not a bank. And in any case, would he? He always says safety trumps yield when it comes to short term investments.

#70 Dharma Bum on 09.21.19 at 11:55 am

Despite being led by questionable people, two of whom love turbans, the country’s actually doing okay. – Garth
——————————————————————-

Now, I don’t care who you are, THAT’S funny, right there!

https://www.youtube.com/watch?v=E6SvhIIBxk8

https://www.youtube.com/watch?v=LTeuHg4dZFw

#71 Flop... on 09.21.19 at 12:05 pm

Why can nobody spell “Scheer”? – Garth

You know the reporters have some headlines ready for Election Day, no matter what happens.

Scheer Madness.

Scheer Delight.

Trudeau photographed jogging in Scheer undies…

M45BC

#72 Stone on 09.21.19 at 12:11 pm

#67 S.Bby on 09.21.19 at 11:42 am
The blackface scandal is quickly dying down as the left is giving Trudope a pass on this one because he is one of them. If this was Andrew Sheer or anyone else to the right side we’d be hearing of the outrage for weeks on end.

Why can nobody spell “Scheer”? – Garth

———

Better question would be, can anyone read, comprehend, and/or extrapolate?

#73 Shawn Allen on 09.21.19 at 12:11 pm

Was GM Really Bailed Out?

Sail Away at 66 responded:

Strong words, Shawn, and unfair.

GM is in fact a US-based company that received a huge US govt bailout a few years ago and are being offered incentive now to build in the US.

There is no forcible regimentation.

**************************
Thank you and true GM is not (yet?) being forcibly regimented. But let’s recall a tweet a few weeks ago something about U.S. companies being hereby ordered to stop doing business with China. Hereby Ordered! Nothing to see here? That goes a bit beyond incentives.

On GM bailout. Who got bailed out?

The former General Motors Corporation was actually renamed Motors Liquidation Company. Its many shareholders were completely wiped out.

Much of its assets were transferred to a brand new company confusingly named General Motors Company (not General Motors Corporation). The new company issued new shares. The old share holders of the actual historical General Motors Corporation remained wiped out – their shares worthless.

My understanding is the government put money into the new GM in return for it taking on the pension and union obligations of the old bankrupted company.

To my mind it was the employees, pensioners and (sadly) many executives that got bailed out. The actual share owners got nothing. Bond investors I presume got little or nothing.

#74 Tony on 09.21.19 at 12:26 pm

Re: #33 Trumpocalypse2019 on 09.20.19 at 6:48 pm

Every time the walls close in on Trump with impeachment or indictment he declares a war. Must have been Friday night’s news that did it this time. Rudy the whistleblower.

#75 Sail Away on 09.21.19 at 12:40 pm

#73 Shawn Allen on 09.21.19 at 12:11 pm
Was GM Really Bailed Out?

Sail Away at 66 responded:

Strong words, Shawn, and unfair.

GM is in fact a US-based company that received a huge US govt bailout a few years ago and are being offered incentive now to build in the US.

There is no forcible regimentation.

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

Thank you and true GM is not (yet?) being forcibly regimented. But let’s recall a tweet a few weeks ago something about U.S. companies being hereby ordered to stop doing business with China. Hereby Ordered! Nothing to see here? That goes a bit beyond incentives.

—————————–

The actual statement was:

“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”

‘Start looking’ is not ‘stop’. Why is accuracy so difficult?

#76 Islandgirl on 09.21.19 at 12:53 pm

#22 Spectacle
We tried the rubber coating, it’s helped but the ants have worked their way in.
As for selling and renting, we only bought because after 6 months of looking we still couldn’t find a decent rental for a decent amount of money. The base house has excellent bones and layout and the fixes will increase the value. Our last rental was ok, but we did have to accept poor heat, mould and rats in the walls.
#31 Penny Henny
Penny, I wouldn’t be surprised if it does have ants, talking to parents at the bus stop, the ants are pretty common, everyone has them. We’ve had an exterminator a couple of times and he’s given us some suggestions on things we can do to help prevent the spread of ants, so far the number of ants has gone down greatly, but the damage is still there, so once we fix it, between the treatments and repairs we’ll be in a good place.
#34 Cici
We’re not dumping another $360. Once we’re done, we will have spent another $120 on top of the original price, so without factoring in interest we will have spent $405, and once the fixes are in place the value of the house will sit around $550-$600 (and that’s conservative).

For some reason some of the commentors fail to understand that we’re not borrowing ANOTHER $360 on top of the original, but $360 will include the $240 for the existing, so only another $120. Flat Roof, Siding and electrical updates. Base house is fine and when we do decide to do that work, we’ll do it as the cash allows and we’ll do most of it ourselves. I don’t believe in spending endless money doing pointless upgrades that will only increase debt.

And the ants are no longer an infestation, once the fixes are done (all designed to prevent re-infestation (based on recommendations of our Ant guy) we’ll be set.

#77 S.Bby on 09.21.19 at 12:58 pm

Why can nobody spell “Scheer”? – Garth

You notice I can’t spell “Trudeau” either … but that’s on purpose.

#78 unbalanced on 09.21.19 at 4:57 pm

Why can nobody spell “Scheer”? Because nobody cares!

#79 Basil Fawlty on 09.21.19 at 5:23 pm

“The Fed provides liquidity to stabilize markets and control the cost of money. It does not “pump $75 B as day into banks”. It you’re going to be your typical long-term alarmist, at least be accurate. – Garth”

$75B per day Wednesday, Thursday and Friday to the banks. Where do you think it went? If it didn’t go the banks, who is getting stabilized and why now?

#80 Smoking Man on 09.22.19 at 2:14 am

To my retart teachers when I was a little boy.

To the next gen of mental case teachers. Abusing children with climate bull shit..

https://youtu.be/fuZyMx2NXZM

Shit load of deplorables out there..cnn only gives the mike to the small minority of freaks.

Shit happens in the voting booth..

Your going to see on October.

James piss off you commie.

#81 Shawn on 09.22.19 at 8:40 am

Somewhat misleading. When you factor currency into your returns the S&P500 is ahead of the TSX both YTD and year over year. The NASDAQ is beating both.

With the exception of the commodity bubble period from 2003-08 the TSX historically does best when $CAD is declining. When $CAD is declining it is best to simply own the S&P500.

No, it is best to own both. As stated. – Garth

#82 Shawn on 09.22.19 at 8:42 am

Sorry not YTD but yoy. $CAD probably declines significantly during the 2020s.

#83 Shawn Severin on 09.22.19 at 9:47 am

Would you still be 20% TSX if the dividends didn’t receive preferential tax treatment?

#84 Cottingham a bargain on 09.22.19 at 10:57 am

Question for Garth or anyone :

Why are mortgages on principle residences less costly in terms of interest when used to buy the/a home or investment property but in order to borrow against same house for leveraged investment portfolio of financial assets ,loan interest rate is so much higher ?

Why the prejudice ?

#85 jimers on 09.23.19 at 12:32 am

#6 islandgirl on 09.20.19 at 4:27 pm

Ants are usually a sign of wet rotted wood, get rid of the rotted wood and you get rid of the ants. And never leave chlorine bleach on wood, it will dissolve it away, rinse bleach well or use oxy-clean instead.