Tech boom or bust?

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RYAN   By Guest Blogger Ryan Lewenza
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The US stock market has been “the” market over the last decade, in large part due to the phenomenal gains from the US tech sector. Indeed, over the last 10 years the Nasdaq and S&P 500 Information Technology sector have returned 18.6% and 20.9% annualized, respectively.

Since the pandemic hit it’s been the only game in town, with the Nasdaq rallying an incredible 75% from the March lows. That was until the beginning of this month when technology stocks pulled back sharply, leaving many to wonder whether the tech rally has run its course, or has much more to go. This is our focus today.

The Nasdaq’s Wild Ride Since the Virus Hit

Source: Stockcharts.com, Turner Investments

Let me begin by stating that this recent pullback should not be a surprise to any investor and only greed could blind you to this fact. Yes, there are many supportive and bullish trends for the technology sector as I’ll touch on shortly, but nothing, even Tesla’s stock price, goes straight up. With the Nasdaq having rallied an incredible 75% since the March lows, tech stocks were ripe for some profit taking.

First, tech stocks had become insanely overbought on a technical basis. The Relative Strength Index (RSI) momentum indicator hit 80 for the Nasdaq in early September (above 70 indicates overbought) and the Nasdaq was trading 28% above its 200-day moving average (MA) – both extreme overbought technical readings.

Second, with the strong price gains valuations for the tech sector had become downright frothy. Below is a chart of the forward price-to-earnings (P/E) ratio for the Nasdaq and you can see how it just “hockey sticked” over the last few months. To start the year the Nasdaq P/E was at 24x and following the huge rally increased to 40x, nearly double the long-term average of 24x. Sure earnings should continue to rise but I’m not sure if enough to support a near doubling of valuations. As Warren Buffet famously said “price is what you pay. Value is what you get”.

Nasdaq P/E Has Surged to 40x Earnings

Source: Bloomberg, Turner Investments

So, given the extreme technical readings and elevated valuations, tech stocks were vulnerable to some profit taking and very well could fall further in the short-term. Currently the Nasdaq is at a critical technical juncture with it trading right at its 50-day MA. If this level fails to hold the Nasdaq could experience another leg lower and I would look to roughly 9,400 (14% lower from current levels) for next major support, which is where the 200-day MA comes in. The next few weeks are going to be very interesting for tech stocks!

The Nasdaq is Trading at its Important 50-day MA

Source: Stockcharts.com, Turner Investments

Now longer term I’m still very bullish on the technology sector given so many supportive trends. They include:

  • E-commerce. The biggest tech trend has been the move to online sales. Last year global e-commerce sales rose to US$3.5 trillion, up from US$1.3 trillion in 2014. And with e-commerce sales still only representing 14% of all global retail sales there is still tremendous growth potential. E-commerce sales are projected to hit US$6.5 trillion by 2023, which would represent a 19% compounded growth rate since 2014. Sorry brick and mortar businesses! Amazon came and changed the world (not necessarily sure if in a good way).

  • Artificial Intelligence. This is the next big thing and will have far-reaching implications for the labour markets, how we get around with autonomous cars and ridesharing, robotics, computing, healthcare and so much more.
  • Cybersecurity. As our whole life moves online bad actors will try to exploit this through those terrible cyber-attacks. In 2018 there were 80,000 cyber-attacks per day in the US or 30 million in total. Cybercrime damages are forecasted to rise to US$6 trillion next year, up from US$3 trillion in 2015. Huge potential!
  • Stay at home. All these technology trends we’re already well established but the pandemic only accelerated these even more. We’re shopping online even more as we avoid large in-closed shopping malls, we’re watching a lot Netflix, Disney and Prime, we’re all on Zoom conference calls, while playing the newest video games. It’s crazy to think one event could change the world so dramatically, with many tech companies greatly benefitting from this pandemic, sadly.
  • Then there’s automation, Fintech, VR, blockchain, IoT, and don’t even get me started on drones! Those things are nuts!

I see these trends lasting for some time, so I’m bullish long-term on the tech sector. But in the short-term, there could be more downside given the current mania and elevated valuations. Buckle up!

Ryan Lewenza, CFA, CMT is a Partner and Portfolio Manager with Turner Investments, and a Senior Vice President, Private Client Group, of Raymond James Ltd.

 

97 comments ↓

#1 crowdedelevatorfartz on 09.12.20 at 8:39 am

“Bricks and Mortor businesses”…….in Malls owned by REITS?

#2 Sara on 09.12.20 at 9:25 am

The poor cat! That looks cruel!

#3 technical analysis? on 09.12.20 at 9:27 am

you could have added that the advance – decline line peaked over a month ago..

or as Tom McClellan pointed out this week, Nasdaq stocks about 100 day MA peaked in June and has been diverging and declining since then..

or as sentimentrader pointed out, the Nasdaq spent 96 trading days over it’s 50 day MA, 14th longest streak since inception in1971…

or that the 5, 10 and 20 day average put/call ratio all eclipsed the 2000 peak .. so , the average Joe has been buying calls like there’s no tomorrow…

#4 Catalyst on 09.12.20 at 9:54 am

Ryan – aren’t you concerned with the tech weighting in index funds like S&P500 rising to crazy levels?

#5 KNOW IT ALL on 09.12.20 at 9:59 am

Plug this in……FNGD

Thank me later.

#6 John in Mtl on 09.12.20 at 10:04 am

Poor Felix, when he sees the blog pic for today, will surely have a heart atack!

#7 Eyeguy on 09.12.20 at 10:14 am

Clever picture. Is it photoshopped or can anyone explain how a cat could flatten itself to fit on a drone?

#8 Penny Henny on 09.12.20 at 10:24 am

#116 Smartalox on 09.11.20 at 7:54 pm
blah, blah, blah

The statement is correct. You wasted 800 words. – Garth
///////////////

Garth you actually read all that?

#9 Tarot Card on 09.12.20 at 10:43 am

Yes the future is already here!
When I think of drones and self driving cars I think wow that will be nice one day. Then I chatted with a potato farmer a few weeks ago. All his tractors are self driving on GPS. He uses drones to find weeds to use for direct spraying. It cost $50,000 to crop dust, now with selected spraying $5,000.
So the future is already here..
I won’t even mention self driving trucks making deliveries and drug drone delivery. Amazing it’s coming faster than you think.
So just to and a wrinkle into Garths projection boomers will sell their homes. I think the opposite will happen advances in technology will enable people to live in their homes longer.
All the best thanks for the blog Garth and the post Ryan.
Going whale watching today!

#10 Unhinged Trader on 09.12.20 at 10:45 am

GOOG is one of the few very large cap tech stocks still trading at somewhat sane multiple. They’re basically a tollbooth for the internet and have some great “hidden assets” such as Android, which is largely unmonetized as of yet, across 2 billion or more devices.

They could easily add another $20 billion to cash flow if they started charging phone makers a minor licensing fee and I know for a fact that management has pondered this for a few years. I could see them easily doubling their share price from here in 1-2 years.

As for Amazon, to this day I have bought only a single item from their website and still do not understand the appeal, or what exactly it is that they do that has the human livestock hooked on them. For household and regular items, it’s much more convenient to simply grab them from a local market, and for novelty, 2nd hand and rare items and collectibles – eBay is FAR superior.

#11 IGV on 09.12.20 at 10:51 am

Translation

Going to to cash and taking a position in SQQQ would have been a good move a few weeks ago when everyone was saying we are in a new norm.

#12 Millennial 1%er on 09.12.20 at 11:00 am

The thing that people miss about technology, or rather, software is that all companies and organizations are becoming tech companies. Banks, universities, and governmental institutions are having increasing reliance on distributed software systems.

You’d do well to invest in companies that provide tools that enable software providers build their software. Think of it this way: a way to invest in electric cars is to own shares in a company that is responsible for harvesting lithium. All the tech companies that you see IPOing build their software on top of cloud providers like AWS (Amazon web services) and Azure (Micro$oft).

One thing that people need to watch out for is confusing “Software” with “Technology”. I’m long on software, but not necessarily on things like EVs.

Blockchain is difficult for companies to capitalize on, it’s best for tax fraud and buying acid off the internet. VR is unironically the future for remote work. IoT is a great way to have security vulnerabilities in your home. I’m looking forward to contractor tier work, similar to landscapers, where people set up homegrown ESP IoT devices for people. Drones are also unironically the future. Fintech + clever marketing is going to grow big.

TL;DR long software, not tech

#13 Millennial 1%er on 09.12.20 at 11:04 am

Oh yeah, and what companies call AI is really just automated statistics. Don’t buy the hype

#14 YouKnowWho on 09.12.20 at 11:26 am

Garth,

Did you notice how the media reported consumer debt dropping from 175% to 158% yesterday? Good news!

17% change.

$2.33 trillion x 17% = $400B – the amount government dumped onto the youth of today they apparently say care so much about, was it not?

Let’s pat ourselves on the back now because 158% consumer debt is….good?

Good method to hear government tell the truth is to listen to what they say and understand that the truth is the exact opposite of what they are saying.

#15 LG on 09.12.20 at 11:29 am

I couldn’t get past the photo.
Please remove it.

“The flying cat drone, or the Orvillecopter as it is officially known, is an interesting and functional work of art that the young Dutch artist Bart Jensen created using the remains of his departed pet cat Orville, in order to honor his memory and keep him in his life.” The feline is not living, but taxidermed. Do not try this at home. – Garth

#16 YouKnowWho on 09.12.20 at 11:42 am

You think MSM mentioned that debt amount increased?
You decide:

>Global – Household debt ratio drops to 158% of disposable income, down from 175%

Overall, credit market debt totalled $2.33 trillion at the end of the quarter including $1.55 trillion in mortgage debt and $779.4 billion in consumer credit and non-mortgage loans.

>CBC – Canadians are paying down debt

All told, Canadians owed $2.3 trillion at the end of June, which consists of $1.5 trillion worth of mortgages, and $779.4 billion worth of consumer debt such as credit cards.

Many didn’t even mention grow egg to new record of $2.33t

#17 aW on 09.12.20 at 11:46 am

Cyber security? IoT?
All these words so is make me regret ever buying Blackberry :((
Eff John Chen.

#18 Ronaldo on 09.12.20 at 11:49 am

#10 Unhinged Trader on 09.12.20 at 10:45 am
GOOG is one of the few very large cap tech stocks still trading at somewhat sane multiple. They’re basically a tollbooth for the internet and have some great “hidden assets” such as Android, which is largely unmonetized as of yet, across 2 billion or more devices.

They could easily add another $20 billion to cash flow if they started charging phone makers a minor licensing fee and I know for a fact that management has pondered this for a few years. I could see them easily doubling their share price from here in 1-2 years.

As for Amazon, to this day I have bought only a single item from their website and still do not understand the appeal, or what exactly it is that they do that has the human livestock hooked on them. For household and regular items, it’s much more convenient to simply grab them from a local market, and for novelty, 2nd hand and rare items and collectibles – eBay is FAR superior.
—————————————————————–
I have used Amazon off and on over the years but mostly shop at local vendors stores.

I needed a replacement pad for my Makita palm sander. Tried Home Hdwr, Home Depot, Lowes, Cdn Tire but no luck. Went home logged on to Amazon. Found what I wanted for 12 bucks and was delivered to my door in two days. I wasted more on gas trying to find one locally.

#19 Steve on 09.12.20 at 11:50 am

People who think AI is statistics, are naive. I would suggest they take a free course on machine learning. AI will make a lot of white collar job obsolete.
Software is technology. Not all tech companies are the same, there are winners and losers. Just try to remember all the mainframe companies and where are they now. Companies come and go, technology builds on itself.
Look for companies that make money and have a competitive advantage that is hard to replicate.

#20 Ronaldo on 09.12.20 at 12:01 pm

The nature of Millies according to Suzuki. Pretty much says it all.

https://www.youtube.com/watch?v=rgbTUttdyNU&index=141&list=PLuCCl-bf8hXJmDUSaLCXFlGfpKHtdBYP4

#21 Dirty Dan on 09.12.20 at 12:06 pm

#7 Eyeguy on 09.12.20 at 10:14 am
Clever picture. Is it photoshopped or can anyone explain how a cat could flatten itself to fit on a drone?

Much like the democratic party… it’s dead and propped up:

https://www.youtube.com/watch?v=lW0hyg4kfaw

#22 YouKnowWho on 09.12.20 at 12:27 pm

Hey, US consumer has $14T USD of debt.

Look at this little tidbit about youth debt.

At the end of the first three months of 2019, student loan debt hit $1.486 trillion, according to credit data from the New York Federal Reserve. By comparison, student loan at the height of the financial crisis was $611 billion and has been mostly rising since,

#23 crowdedelevatorfartz on 09.12.20 at 12:33 pm

A stuffed Cat-copter named Orville…
I do believe I have seen almost everything……..

#24 ronh on 09.12.20 at 12:39 pm

a coin has two sides:

https://www.zerohedge.com/markets/inflation-deflation-other-fallacies

#25 Millenial Surrealist on 09.12.20 at 12:43 pm

Better take those cap gains now boomers….it’s yer last shot…..a dollar is a dollar is a dollar……… the rules change Sept. 23

#26 TurnerNation on 09.12.20 at 12:53 pm

Good idea for poll:
How many persons know to you actually 100% diagnosed with CV and had any type of symptom.
Versus the people collecting CERB.
(And as a % of population chart each with respect to pandemic-level numbers required to declare as such.)

We’ve long passed from science on to Superstition. Did you sit down and ask your down doctor for your situation? Or are you swapping internet stories and conspiracies, as MF and others do. Here how many NON MMA fighters have heart issues, let’s keep it real shall we? 4/5 Navy Seals and SAS warriors endorse this message..don’t forget the fighter pilots and commandos. Let’s ask all the He-men. Makes good headlines.

Your doctor/your health. Versus the scary noises and shadows outside of your cave. Do no step outside The Monster might get you. Sure you’ve never even seen one. But others have. Ensure your kids have a healthy fear of this monster too.

#27 NoName on 09.12.20 at 12:53 pm

#2 Sara on 09.12.20 at 9:25 am
The poor cat! That looks cruel!

Brat jensen, cat drone , ostrich drone and rumor is that he is working on cow helicopter…

#28 Phil on 09.12.20 at 12:59 pm

“The flying cat drone, or the Orvillecopter as it is officially known, is an interesting and functional work of art that the young Dutch artist Bart Jensen created using the remains of his departed pet cat Orville, in order to honor his memory and keep him in his life.” – Garth
*************************************
It still looks scared!
Does it bounce?

#29 Supporting the Displaced on 09.12.20 at 12:59 pm

With all this churning, it must be a good time to make butter.

Regarding AI, and its affect on the labour market, I believe that the type of behaviour we will see in the general population will make what we are seeing in the United States tame by comparison. That is just a class of opposing parties. What is coming will be seen as the relegation of humans to the sidelines.

So many jobs will be instead be relegated to automation. I think it would be difficult to replace a store clerk for example as the cost of a device to replace a store clerk may be high but, if that is the problem, then the way around it is to just remove the circumstance where a clerk is the optimum. Shop online; make the buying of an item as foolproof and easy as possible. No physical store, no clerk. This is already happening with the enticement that just about anything is available and the cost can be lower. It is also easier for people to get what they want without having to give up a lot of time. The benefits of home delivery far outweigh the relatively minor losses from theft.

I think that this simple case can be extended to just about any workplace. A very old example of replacing a highly-skilled human with a technical solution that requires a less skilled person is the case of the replacement of archers by musketry. It took a long time to train an archer skilled enough to be lethal but any fool could be given a musket, told which direction to point it in, and let them have at it (being careful to stand far enough back).

History is full of examples of this type of change based on reformulating the question. Instead of asking how do we train more archers, why not replace them altogether with a weapon that requires less training, and is less dependent on the skilled person. Thus, the question of maintaining a large fleet of local delivery trucks and the need for more of them to service a growing demand for deliveries could easily be replaced by having more lower-cost drones, that can cut out the need for an expensive fleet of trucks and the salaries needed to pay the drivers, mechanics, loaders, and so on. You can even designate a safe landing site that makes it much more difficult for thieves to steal packages, unless of course they have a ladder truck. Of course, that is highly unlikely and it shows again the benefit of reformulating the question. If a thief cannot afford the tools to do their work, they are less likely to thrive.

Considering the drone case in more detail, if we use automatic navigation systems, the drone takes on all the tasks to get from point A to point B and if needed, at the point of delivery, a single operator can be prompted to perform some final verification that requires less than one percent of the time needed to complete the order. So fewer operators are needed.

We can go on in this vein. Great efficiencies of scale are possible. Wholesale losses of jobs are also very likely. I doubt all of these displaced people are going to be enthralled as some might about the efficiencies and greater effectiveness AI solutions may bring. How to help these people may become the single largest problem to solve in the years to come.

#30 mike from mtl on 09.12.20 at 1:08 pm

#10 Unhinged Trader on 09.12.20 at 10:45 am

..As for Amazon, to this day I have bought only a single item from their website and still do not understand the appeal, or what exactly it is that they do that has the human livestock hooked on them. For household and regular items, it’s much more convenient to simply grab them from a local market, and for novelty, 2nd hand and rare items and collectibles – eBay is FAR superior.

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

Totally agree, Amazon is really only useful for ‘dry’ consumer items. Industrial, speciality parts, professional equipment – forget it. eBay is fantastic for second-hand of weird or non-consumer stuff. In specific to musical instruments, Reverb is 2-3x more expensive for some reason.

Regarding the SP500, well yeah tech is overvalued and usually is. But those tech mega corps hold up the entire index. sp500 would be basically flat the last 2 years without them. Thank goodness S&P didn’t include cashburn dumpster Tesla.

#31 MF on 09.12.20 at 1:09 pm

6 TurnerNation on 09.12.20 at 12

Lol @ this guy.

Stick to your stock picking conspiracies. More comedic value.

Your pandemic “coverage” over the last 6 months on this forum has been like sitting at the breakfast table every day and being served a poop sandwich labeled as Nutella.

MF

#32 MF on 09.12.20 at 1:13 pm

Tech stocks.

Easy to see how they are overvalued, but hard to say whether it is justified. There is a much greater amount of people using products and services from these companies these days compared to the last tech bubble in 2000. My wife buys from amazon 6 days a week. We use google every day. Facebook ditto. The kids use Instagram (more Facebook) etc.

I think there is actually more steam in this bull, but first there will be a pullback.

Tesla is looking overvalued though.

MF

#33 Don Guillermo on 09.12.20 at 1:18 pm

#161 Dharma Bum on 09.12.20 at 10:22 am
#88 Puzni

Those with excessive amounts in their bank accounts are welcome to go to USA and have private clinics look at their issues.
——————————————————————–

That is the saving grace.

Those with the monetary means to bypass the communist healthcare system can do so outside of the border.

In many situations, it’s money well spent…if one values their health.

The Canadian government doesn’t value your health. They are more concerned about the appearance of “fairness”, while those with serious health conditions languish endlessly.

Thank goodness for the U.S.A.
***************************************
Mexico can be a good option as well and much more affordable. Just takes a little research to find the right hospital or doctors but it’s not too hard. I know many expats that have had successful knee and/or hip replacements. I know one fellow that had a Ontario botched prostrate operation made well and I also know various people that have gone through cancer treatments successfully in Mexico.

Also some very good and affordable dental work can be had. I’ve heard some negative stories from people having dental work done along US snowbird boarder towns. I would suggest extra caution and research when having work done in these areas as Mexican doctors and dentists (some good, some not so good) move there knowing they can charge higher rates.

Research and personal references are key but not complicated. If you’re wealthy enough to have work done in the US, why not? If you’re not Mexico can be a good safe option.

#34 kommykim on 09.12.20 at 1:36 pm

RE: #2 Sara on 09.12.20 at 9:25 am
The poor cat! That looks cruel!

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

Well, it’s his dead cat which he had stuffed before he turned it into a drone.
When the drone crashes, it does the dead cat bounce.

#35 Steerage on 09.12.20 at 1:51 pm

Hey turnernation this ones for you….

AI uses for mask detection… growing industry!!

https://api.nationalgeographic.com/distribution/public/amp/science/2020/09/face-mask-recognition-has-arrived-for-coronavirus-better-or-worse-cvd?__twitter_impression=true

#36 Barb on 09.12.20 at 2:00 pm

A friend told me yesterday that she had ordered a dollhouse “set” for her grandaughter from Amazon as a Christmas gift.

After waiting and waiting (the tracking tool indicated it had been sent, but not received), she contacted Amazon and was advised that the shipment was indeed missing. A refund was arranged. The Amazon rep indicated “it happens now and then.”

Friend suggested the manufacturing facility may need to improve security…especially when the item may be a very desirable toy. Amazon uses plain brown wrappers, so suspicion falls elsewhere.

#37 Dead cat flying on 09.12.20 at 2:09 pm

Sure beats a dead cat bounce….

#38 Ponzius Pilatus on 09.12.20 at 2:16 pm

The flaming inferno in the Western States again proofs how small people kind is when confronted with Nature’s
wrath.
instead of wasting resources on self driving cars, these resources should directed towards cleaning up the mess we created.
Also, the current fire fighting methods are not very effective.
Huge drones and fireproof robots would be much more effective.

#39 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 09.12.20 at 2:24 pm

The tech bust is nothing compared to the loser

RAPTORS!!!

LOOOooooooossSSSSEEEeeerrRRRRRSSSSss!!!

AGAIN :)

Now you Toronto types can get back to what you really are good at – shooting each other and trying to flog overpriced condos and slanty semis to Greater Fools!

#40 Dr V on 09.12.20 at 2:27 pm

25 MR – Sure did! Pretty good timing too with the recent tech selloff. That’s one thing about cap gains –
you can choose when to take them, as long as there is some to take!

Of course it doesn’t matter in the RRSP as it’s all taxed as income, nor in the TFSA. Nothing matters in the
TFSA – it’s great!

You?

What? No RRSP? No TFSA?

You thought the rules were different for you?? Oh man…

#41 JSS on 09.12.20 at 2:28 pm

Ryan can we expect investors to rotate from tech stocks into oil stocks. Isn’t there better value in oil stocks now?

#42 mick McClean on 09.12.20 at 2:32 pm

AJ posted this headline yesterday. “Fender on Track for Biggest Sales Year Ever in 2020″. Maybe, just maybe some Gen Z basement dwellers will receive a Fender and between pushing buttons on their Playstations learn if they actually practice a couple of hours a day and don’t mind some blistered fingers they can come up with some cool sounds like that guy Hendrix they’ve seen posters of in their Grandparents. Hope springs eternal.

#43 Stone on 09.12.20 at 2:32 pm

#25 Millenial Surrealist on 09.12.20 at 12:43 pm
Better take those cap gains now boomers….it’s yer last shot…..a dollar is a dollar is a dollar……… the rules change Sept. 23

———

Login. Tap, tap, tap. Sell. Tap, tap, tap. Accept. Tap, tap, tap. $7,567,985.31.

2 days later. Login. Tap, tap, tap. Transfer. Accept. Tap, tap, tap. Wire. Accept.

Thank you. Your funds are now transferred to your offshore account.

Total time: 2 days, 30 seconds.
Total cost: $100
Total tax: 5%. Tax that, baby!

For everything else, there’s MasterCard.

Bye!

#44 TurnerNation on 09.12.20 at 2:38 pm

The future. A buddy of mine with a lifelong career in music and nightlife is back in town. From BC.
I related my take that overseas developers will pounce on those now-closed Granville St nighclubs in Vancouver. .
Condos . But he already knew that! He is on same page. But how.

Some said that overseas interests manipulate our governments. I never gave that any credence.
Should it? Let’s see which overseas condo development firm gets first crack at Granville St.
Flop, Crowdedelvator let us know.

#45 Stan Brooks on 09.12.20 at 3:00 pm

The only sectors that matter are food, energy/resource, medical/pharmacy, entertainment and tech due to automation of labour.

The rest – real estate, services etc. is an absolute BS that is destined to sink.

Investment in the ‘general’ economy is stupid. Brick and mortar is doomed. general trade is doomed.

Invest in selected sectors.

Cheers,

#46 Millennial Realist on 09.12.20 at 3:05 pm

Anyone in Vancouver today disagree that we have to dramatically change things?

https://bc.ctvnews.ca/vancouver-air-quality-among-world-s-worst-because-of-u-s-fires-1.5101956

Be part of the change.

Or be run over by it.

Starting September 23.

#47 Millenial Surrealist on 09.12.20 at 3:07 pm

#43 Stone on 09.12.20 at 2:32 pm
#25 Millenial Surrealist on 09.12.20 at 12:43 pm
Better take those cap gains now boomers….it’s yer last shot…..a dollar is a dollar is a dollar……… the rules change Sept. 23

———

Login. Tap, tap, tap. Sell. Tap, tap, tap. Accept. Tap, tap, tap. $7,567,985.31.

2 days later. Login. Tap, tap, tap. Transfer. Accept. Tap, tap, tap. Wire. Accept.

Thank you. Your funds are now transferred to your offshore account.

Total time: 2 days, 30 seconds.
Total cost: $100
Total tax: 5%. Tax that, baby!

For everything else, there’s MasterCard.

Bye!

For everything there is UBI…..read it and weep boomer….better offshore fast ….change is coming…

#48 TurnerNation on 09.12.20 at 3:10 pm

50th? Remember folks, “Distancing” is being used as a social-economic weapons. Small business, with its high jobs multiplier per square foot must go.
This is the biggest land and asset transfer we are living since…WW2? WW3.

Learn Incrementalism – one small step at a time.
Distancing…always, at least five time. Healthy people and businesses being destroyed. Yes the 6-6-6 foot rule can do that.
………..
The King West nightclub Arcane came under similar fire last month after videos circulated of a non-distanced party happening on the premises.

“Larger places should hire more staff to control crowds and help with social distancing.

Chris Haslett of Annex staples Madison Avenue Pub and Paupers Pub believes the city should focus less on bars and more on what he describes as the real social distancing problems

https://www.blogto.com/eat_drink/2020/09/toronto-bar-reduce-hours/

#49 SoggyShorts on 09.12.20 at 3:13 pm

#25 Millenial Surrealist on 09.12.20 at 12:43 pm
Better take those cap gains now boomers….it’s yer last shot…..a dollar is a dollar is a dollar……… the rules change Sept. 23
********************
You’re cheering this?
A change that will effect boomers for the last ~10 years of their life and hurt you for the next 60 of yours?

Are you sure you should be happy about this? The only way you should be happy about more taxes is if you never had any ambition to ever be successful in any way shape or form…

Oh… now I get why you’re happy about it.

#50 Brian Ripley on 09.12.20 at 3:15 pm

“Buckle up!” Ryan Lewenza

My Housing price momentum chart of Vancouver, Calgary and Toronto average single family detached prices with an overlay of the TSX Real Estate Index plot is up with August data:
http://www.chpc.biz/housing-price-momentum.html

In Toronto at street level, buyers are bidding up brick and mortar housing prices and pushing the price momemtum up towards the 2017 highs.

But the TSX real estate index plot is producing a counter narrative.

Yes, buckle up.

#51 Fortunate One on 09.12.20 at 3:18 pm

Fabulous shot. Very pertinent to the topic. Well done!!!

#52 NSNG on 09.12.20 at 4:14 pm

#129 crazyfox on 09.11.20 at 9:00 pm

#116 Smartalox on 09.11.20 at 7:54 pm

The question we should be asking ourselves is, what is it going to take for governments to take control of food and drug regs for the greater good of healthy populations, over the corporations profiteering at the consequence of shortening the lifespans of the majority of us, corporations that clearly write these government regs?

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

Uhhhh, no.

Are you really going to tell me you are advocating for the government to be adding (more) things to our food? Food should be as clean, natural, and as close to the ground/animal it came from without the government’s dirty fingers choosing to put the things in it that they decide is good for us. Big Ag will quickly corrupt that process the instant it becomes a gravy train. Don’t kid yourself.

We don’t need the government to provide our vitamin D for us. If they do, it will probably cost five times what it costs now. The free market already provides Vitamin D at very affordable rates. What we do need is for the government to stand up on the podium and tell people to start taking the supplement and show them why it is beneficial like you did in your post. That should be enough.

#53 Camille on 09.12.20 at 4:46 pm

Constructive criticism. I’m not sure where this post is going? The s&p is down 6.9% from ATH, Dow is down 6.4% from same. Nasdaq 10.1%, and tsx 9.7%. Ryan you say more to come in tech, down, down. So you’re bullish tech, just not now?
So we’re not talking rotation from growth to value? Sorry to hear that.
Side dish, tech is not only game in town. Gold miners and long treasuries up big, big. Time to sell and move.
It would be nice to rotate into something, but what? I thought REIT, maybe utilities. Sounds like you’re going to rotate into tech?
Come on, man up guys, where’s your exposure to tech in you portfolios today? A little s&p, how much can you have? Or are we just talking bullshit?
(As always though, I humbly thank you for the post, makes me think)

#54 Drinking on 09.12.20 at 4:48 pm

In this day and age my bet would be on security, anything to do with security; especially cyber.

Carl Sagan had it right all along!

#55 CPA Physician on 09.12.20 at 5:02 pm

Speaking of ecommerce, what about the rise of OnlyFans and xxx photos on Instagram? Many people who host on those websites make more money than the Prime Minister.

#56 Drinking on 09.12.20 at 5:06 pm

#46 Millennial Realist

You are funny! Sept 23rd will change nothing! Start saving!

#57 Stone on 09.12.20 at 5:22 pm

#47 Millenial Surrealist on 09.12.20 at 3:07 pm
#43 Stone on 09.12.20 at 2:32 pm
#25 Millenial Surrealist on 09.12.20 at 12:43 pm
Better take those cap gains now boomers….it’s yer last shot…..a dollar is a dollar is a dollar……… the rules change Sept. 23

———

Login. Tap, tap, tap. Sell. Tap, tap, tap. Accept. Tap, tap, tap. $7,567,985.31.

2 days later. Login. Tap, tap, tap. Transfer. Accept. Tap, tap, tap. Wire. Accept.

Thank you. Your funds are now transferred to your offshore account.

Total time: 2 days, 30 seconds.
Total cost: $100
Total tax: 5%. Tax that, baby!

For everything else, there’s MasterCard.

Bye!

For everything there is UBI…..read it and weep boomer….better offshore fast ….change is coming…

———

I’m not a boomer but I am the future. I do guarantee you will regret salivating for UBI. If UBI makes its appearance, do you really believe you will be at the top of the foodchain? You have a loser attitude now and it won’t change thereafter.

September 20th and no more Tik Tok. Don’t worry about Setember 23rd. Your head will have exploded 3 days prior.

#58 willworkforpickles on 09.12.20 at 5:22 pm

I lived in the annex in dt Toronto for 17 years back in the 70’s and 80’s under dual citizenship before moving back stateside.
The 1970’s… greatest wild party (supreme) decade of all time.
If you missed the 70’s…you never knew T O period !
…And the 1980’s….ooh yeah wow! Just legend for making easy easy money.
If you owned a business, any business in Toronto then you needed a breather (often) from counting the money and running to the bank.
If you had your own business you couldn’t help but make loads of cash there as business saturation didn’t exist. Competition was minimal then.
I remember walking to the bank with my pockets so stuffed with cash i had to hold the tops of them closed with my fingers to prevent the bills from bursting out onto the sidewalk…although ones and twos were still in bill form then adding the extra padding.
Good days indeed, but long gone.
Every business over time had and has become over saturated with new competition resulting from immigration and a population explosion.
Regular jobs could never keep up, everybody and his brother it seems opened up their own business and business’s.
Making a buck operating a business only got tougher as the years rolled on.
In 2020 and with both governments stepping in with support as they have and are, the inevitable overall reset that comes with recession has been delayed indefinitely.
The one area of the economy that has undergone a big reset due to the pandemic is the shaking out of small business’s leaving less competition and more breathing room for the survivors….but at the very least, a little.

#59 Penny Henny on 09.12.20 at 5:49 pm

#32 MF on 09.12.20 at 1:13 pm
Tech stocks.

Easy to see how they are overvalued, but hard to say whether it is justified. There is a much greater amount of people using products and services from these companies these days compared to the last tech bubble in 2000. My wife buys from amazon 6 days a week. We use google every day. Facebook ditto. The kids use Instagram (more Facebook) etc.

I think there is actually more steam in this bull, but first there will be a pullback.

Tesla is looking overvalued though.

MF
/////////////////

Well, well, well MF are you living a double life.
It seemed that just last year you only had a girlfriend and now you have a wife and kids old enough to use Facetube and instagram

#60 Nonplused on 09.12.20 at 5:55 pm

Yes many changes that were already underway are coming in the tech world, but there is no way you are going to get me in a “fully autonomous” car! It is pretty amazing what they have done but the technology is a long ways from where it needs to be. The fact is that the self driving technology relies on radar and GPS, it doesn’t “see” like a human does and it cannot make decisions in unusual circumstances either because it does not have “problem solving” capabilities. That is why they keep smashing into police cars when they don’t expect them to be parked in the middle of the lane. They are probably safer than a teenage boy driving but the part that is left to be developed is the hardest part, so I don’t expect “full autonomy” any time soon. Maybe one day.

I don’t even like the driver’s assist they put on cars now. There is nothing worse than having the car fight with you when trying to change lanes just because you didn’t signal as there wasn’t another car around to see it. And maybe accident avoidance breaking works but I wouldn’t rely on it, and within a few years it’ll just mean everyone is driving faster than they should just like what happened with anti-lock brakes and traction control.

It seems no matter what safety technology they come up with human fools can find creative ways to override them.

——————————

Well, school is back in session using draconian rules, and only a week in the covid cases are popping up. My daughter at first questioned my son’s decision to do online learning, but after her first week at her practicum (she is studying to be a teacher), she now admits we were right that it wasn’t going to work on kids and she now forecasts the schools will all be closed again by November. The kids are not wearing their masks properly, they aren’t social distancing, they are sharing food and drinks, they are hugging each other, and passing items like phones around. I said it wasn’t going to work and I still don’t think it will. Wave 2 is coming. I mean, they can’t even stop the spread of head lice in the schools and that is easy to detect and easy to treat.

It would have been better to open up business first, because at least you are dealing with adults. Some of them aren’t any smarter but I think it would have been more successful.

#61 tccontrarian on 09.12.20 at 6:00 pm

“… there are many supportive and bullish trends for the technology sector as I’ll touch on shortly, but nothing, even Tesla’s stock price, goes straight up. ”

————————————–

Yet, there are a few (unpopular) voices who expect a spectacular decline in the Nasdaq, in the range of 50-70% over the next couple years.

Any scenario where you could see this actually being a reality, Ryan?

#62 Nonplused on 09.12.20 at 6:06 pm

#15 LG on 09.12.20 at 11:29 am
I couldn’t get past the photo.
Please remove it.

“The flying cat drone, or the Orvillecopter as it is officially known, is an interesting and functional work of art that the young Dutch artist Bart Jensen created using the remains of his departed pet cat Orville, in order to honor his memory and keep him in his life.” The feline is not living, but taxidermed. Do not try this at home. – Garth

———————————

Now I want to see the flying cat drone, but sadly it has been replaced by a horrifying picture of a robot suppressing humanity!

#63 Nonplused on 09.12.20 at 6:16 pm

#18 Ronaldo on 09.12.20 at 11:49 am

“I needed a replacement pad for my Makita palm sander. Tried Home Hdwr, Home Depot, Lowes, Cdn Tire but no luck. Went home logged on to Amazon. Found what I wanted for 12 bucks and was delivered to my door in two days. I wasted more on gas trying to find one locally.”

—————————

Ya Amazon is great for parts. I needed a new water control valve (I think that’s what it is called) for my washing machine. Try and find one of those locally! I watched a video on YouTube University to find out how to replace it and they had a link to the part. Came from Texas in a few days (other than the tie up at the border for GST). Damn machine was filling up with water even when it was turned off, which is a pain in the arse on a front load and ruined the ceiling in my cold room. The parts they use are so cheap these days that nothing ever lasts for long.

#64 Nonplused on 09.12.20 at 6:25 pm

#46 Millennial Realist on 09.12.20 at 3:05 pm
Anyone in Vancouver today disagree that we have to dramatically change things?

https://bc.ctvnews.ca/vancouver-air-quality-among-world-s-worst-because-of-u-s-fires-1.5101956

——————————–

Yes, but in this case back to the old days. Fire is part of the normal life cycle of a forest. So our policy of stamping out the little fires means eventually you get a big fire as the fuel accumulates. In the old days controlled burns and selective logging kept the forest managed. Now, you can’t have controlled burns because of nature and you can’t selective log because of… owls or something I guess. Well I wonder how those owls are making out now.

#65 Mark Dillon on 09.12.20 at 6:34 pm

YouKnowWho, It is such BS isn’t it. Trudeau, Freeland Federal Liberals should pay all 100% of their debt and give everyone $1 million each so they can use it for toilet paper as that is what it will be worth. You can’t beat math, math beats you.

#66 Ponzius Pilatus on 09.12.20 at 6:48 pm

#64 Nonplused on 09.12.20 at 6:25 pm
#46 Millennial Realist on 09.12.20 at 3:05 pm
Anyone in Vancouver today disagree that we have to dramatically change things?

https://bc.ctvnews.ca/vancouver-air-quality-among-world-s-worst-because-of-u-s-fires-1.5101956

——————————–

Yes, but in this case back to the old days. Fire is part of the normal life cycle of a forest. So our policy of stamping out the little fires means eventually you get a big fire as the fuel accumulates. In the old days controlled burns and selective logging kept the forest managed. Now, you can’t have controlled burns because of nature and you can’t selective log because of… owls or something I guess. Well I wonder how those owls are making out now.
————-
I guess, 49 degrees has nothing to do with it?

#67 crowdedelevatorfartz on 09.12.20 at 6:49 pm

@#46 Millenniall Realist
“Anyone in Vancouver today disagree that we have to dramatically change things?”
++++

Isnt it obvious?
We need more binary gendered fire fighters in the forest to reach our human resources equality targets.

#68 espressobob on 09.12.20 at 6:55 pm

Index investing has the advantage of owning all the major players with no effort on the part of the investor to time a whole lot of anything. I believe Jack Bogle has made this point a long time ago.
He referred to sector and commodity play as “fruits and nuts”.

Taking profit once in a while or rebalancing as its known has merit along with buying a bargain when Mr market has a hissy fit. This can prove quite profitable.

Don’t care much about side bets personally, just one individuals opinion.

#69 crowdedelevatorfartz on 09.12.20 at 6:57 pm

@#64 Nonplused
“Well I wonder how those owls are making out now.”

+++
Not to worry.
We’ll hire UBI supported ex WE volunteers to weave little owl masks at home out of hemp stock.
Amazon .ca will deliver the little hem owl masks to other UBI “volunteers” that will run around the forest after dark with big butterfly nets shouting “Whom! Whom!” (because Who! Who! is soooo gender inappropriate).
When they catch the owls they will put the masks on them and let them go…
The owls will starve because they cant eat and another govt dept will be created to determine how we could have done this next in a more inclusive, gender specific way after WE have learned ….how to talk to owls.

#70 Felix on 09.12.20 at 7:20 pm

Ryan,

Looks like you got our lawyer’s letter and have now completed the removal of your racist and abusive, anti-feline original photo today.

We cannot, however, speak to any individual acts of revenge that may be forthcoming from other cats.

Hope you don’t wake up with scratches on your face. Perhaps wear a plastic face shield to bed starting tonight just in case.

Good night.

#71 Drinking on 09.12.20 at 7:43 pm

Damn, I wish I saw the pic of the dead flying cat instead of some bionic arm reaching out to Felix’s arm!

#72 SOMETHINGS UP!! on 09.12.20 at 8:06 pm

GREAT ARTICLE…

Unfortunately ruined by a feline….. the downfall of many a men.

Like Buffett has stated “Stick with what you know”

Canines for Life!

#73 Nonplused on 09.12.20 at 8:26 pm

#66 Ponzius Pilatus on 09.12.20 at 6:48 pm

I guess, 49 degrees has nothing to do with it?

——————————

Well of course it does, but this isn’t the first time ever 49 degrees has happened.

When the settlers first arrived in California, they were surprised to see the natives lighting forest fires. They thought they were a bunch of pyromaniacs and vandals. Turns out the natives knew exactly what they were doing and why. Better a bunch of small fires than one big one.

#74 Nonplused on 09.12.20 at 8:29 pm

#69 crowdedelevatorfartz on 09.12.20 at 6:57 pm

Umm… you forgot to sarc/off.

#75 TurnerNation on 09.12.20 at 8:43 pm

Let’s see if we can get the new guy into three-digit comments territory.

A year ago if I’d passed on what I heard and believe likely, that there’s a plan afoot to bankrupt and corrupt all First World nations with a debt b0mb and make thing to be generally so bad we’d welcome no beg for the new UN global government.
You would have said that “it’s a CoNsPiRaCy” and to “Just buya da house.”

Today many would say : “uh-huh we talking this year or next? And just buya da house”.

#76 Out Of Work CEO, Will Travel on 09.12.20 at 8:50 pm

Welfare is shaping up to invite out state sponsored art and culture in one sweep. Trudeau styles the patronage very scripted like Macron in France. There aren’t enough reasons to kiss the foreign parts of plunderers off the dark continent to satisfy his high achieving We faith.

#77 MF on 09.12.20 at 9:02 pm

9 Penny Henny on 09.12.20 at 5:49 pm

Lol good catch.

New development :)

MF

#78 Anti Felis catus on 09.12.20 at 9:27 pm

#71 Drinking on 09.12.20 at 7:43 pm
Damn, I wish I saw the pic of the dead flying cat instead of some bionic arm reaching out to Felix’s arm!

https://bit.ly/3ip3jOo
You’re welcome

#79 Ryan Lewenza on 09.12.20 at 10:42 pm

JSS “Ryan can we expect investors to rotate from tech stocks into oil stocks. Isn’t there better value in oil stocks now?“

Yes I expect there to be a sector rotation as the recovery continues and do see value in energy. But energy’s been a big underperformer for a while so the technicals need to turn around. – Ryan L

#80 Stoph on 09.12.20 at 10:45 pm

CBC is reporting that guaranteed basic income is at the top of Liberal policy priorities. Interesting times.

https://www.cbc.ca/news/politics/guaranteed-basic-income-priorities-liberals-1.5721943

#81 cuke and tomato picker on 09.13.20 at 12:34 am

I hope that as the children of B.C. and the rest of Canada go back to school we are all very successful with in school
instruction.

#82 Dr V on 09.13.20 at 1:09 am

Looks like its officially on the agenda

https://www.cbc.ca/news/politics/guaranteed-basic-income-priorities-liberals-1.5721943

#83 LP on 09.13.20 at 6:26 am

#63 Nonplused on 09.12.20 at 6:16 pm

try a website called: https://www.partselect.ca/

F73ON

#84 David Hawke on 09.13.20 at 8:43 am

The pandemic BS has gone past the ridiclous stage.

#26 TurnerNation on 09.12.20 at 12:53 pm
Good idea for poll:
How many persons know to you actually 100% diagnosed with CV and had any type of symptom.
Versus the people collecting CERB.
(And as a % of population chart each with respect to pandemic-level numbers required to declare as such.)

We’ve long passed from science on to Superstition. Did you sit down and ask your down doctor for your situation? Or are you swapping internet stories and conspiracies, as MF and others do. Here how many NON MMA fighters have heart issues, let’s keep it real shall we? 4/5 Navy Seals and SAS warriors endorse this message..don’t forget the fighter pilots and commandos. Let’s ask all the He-men. Makes good headlines.

Your doctor/your health. Versus the scary noises and shadows outside of your cave. Do no step outside The Monster might get you. Sure you’ve never even seen one. But others have. Ensure your kids have a healthy fear of this monster too.

#85 IGV on 09.13.20 at 8:57 am

You guys really should put up the period of time ….oh 13 years…..it took to get back to even.

Eventually the money printing will lose its effectiveness to magically lift the market.

2008 the term “emergency rate cut” came in. Dont you find it odd they never removed that term? And we never recovered from that?

#86 Do we have all the facts on 09.13.20 at 9:19 am

The market capitalization of all publicly traded companies in the world exceeds $70 trillion in 2020. The market cap of companies based in the United States in 2020 exceeds $30 trillion, or 44% of the global total.

While the US share of total market capitalization is shrinking the average market cap of companies based in the U S is steadily increasing. As highlighted by Ryan the market cap of US based tech companies has experienced exponential growth in recent years.

In 2006 the total market cap of Apple, Amazon, Alphabet, Microsoft and Facebook was $465.4 billion. In 2020 the market cap of these same five tech companies was $5.6 trillion. In 2020 the market cap of just five companies represented 18.6 % of the total market cap of over 5,000 US based companies.

Is it possible for the five companies that expanded their market cap by more than 20% per year over the past 14 years to continue this rate of expansion.

Clearly the rate of return on investment generated by all US based companies was supported by the phenomenal growth of just five companies holding 18.6% of the total market cap of all companies.

Can future growth of the total equity market be based on past rates of growth so strongly influenced by just five companies?

#87 crowdedelevatorfartz on 09.13.20 at 10:13 am

@#74 nonplused
“Umm… you forgot to sarc/off.”

++++
My sarcasm is never off or did you mistype and you meant to type “f” instead of “s” ?

#88 Ryan Lewenza on 09.13.20 at 10:26 am

tccontarian “Yet, there are a few (unpopular) voices who expect a spectacular decline in the Nasdaq, in the range of 50-70% over the next couple years.

Any scenario where you could see this actually being a reality, Ryan?“

I never say never but I don’t see a scenario where the Nasdaq could fall 50-70%. Yes valuations are high right now but nowhere near the 2000 tech bubble levels. US tech companies are much more profitable today, have better balance sheets with lots of cash, and some even pay dividends now. Unless there is major stock market crash I can’t see how tech stocks could get cut in half. – Ryan L

#89 BillyBob on 09.13.20 at 11:35 am

#87 crowdedelevatorfartz on 09.13.20 at 10:13 am
@#74 nonplused
“Umm… you forgot to sarc/off.”

++++
My sarcasm is never off or did you mistype and you meant to type “f” instead of “s” ?

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

*slow clap*

I despise pretty much all social media but comments like this are why the “like” button was invented! :-)

#90 technical analysis?? on 09.13.20 at 11:41 am

#85 IGV on 09.13.20 at 8:57 am
____________________________________

the economy is like a crack cocaine addict, central banks are the dealers. as long as the bank prints more money, and gives it to the addict, the stock market will pop. the addict requires more and more crack as time goes on to perk up. at some point, the crack will kill the addict.

these problems have been going on for decades. the blame goes way way back. plenty of blame to go around. From Nixon, to Greenspan, to Bernanke, Yellen and now Powell.

#91 TurnerNation on 09.13.20 at 11:53 am

Ha at least no-one has accused me of being wrong.
In this pathetic weblog’s comments section:
‘You are not popular because you are right;
You are right because you are popular.’

Deep.
Crowdedelevator nailed the future yest:

“In a century, mobs will rip down his statues and beat the metal into plows to feed their starving, tri-gendered, university educated, children”

As did #162 Linda.
“It is all BS and the ones that believe in all this social engineering are on the take, government workers, make a living from it or work for the UN, foundations, charities which are really not real charities, WE charities sound familiar and other NGO’s etc.”

***
This is why we are being sold so hard. Too many people have vested interests. Every person has their price. For most it’s their monthly mortgage payments. Now be a good boy and drop a knee will ya.

#92 Damifino on 09.13.20 at 11:57 am

#80 Stoph

From the CBC article link you posted we hear that:

Liberal riding associations and the party’s various commissions [….] came up with more than 500 proposed resolutions…

Here’s one. Newfoundland and Labrador call for:

“world-leading incentives and benefits” for that province’s offshore oil and gas industry in order to attract “sustainable exploration and production” and fuel the economic recovery.

Wow!! Good for them, but… do they not realize what party they’re in? That’s like asking the NDP to support bank subsidies. A Quebec proposal calls for this:

end support for both the fossil fuel and nuclear components of the energy industry

Deep wrongheadedness. Support should increase, especially for nuclear.

And a youth commission resolution calls for an economic recovery plan that “promotes investment in the environmental infrastructure projects and divestment from the oil industry.”

Let’s call this what it is: Fairy dust. The youth of the country will be very displeased if they actually find themselves in world that runs (or more correctly, fails to run) on non-concentrated, unreliable energy sources. Instead, they should think more France (lots of nuclear), rather than Germany (lots of problems).

#93 Dr V on 09.13.20 at 11:58 am

89 BB – I give it a thumbs up or 5 stars

#94 MF on 09.13.20 at 1:03 pm

#90 technical analysis?? on 09.13.20 at 11:41

Yup. This should be a fear for all us long term investors.

“Stimulus” is easy to turn on, and very difficult to turn off. First 2008 and the endless weird bond buying created a problem, and then in 2020 they seem to have doubled down on the same approach, creating a bigger problem.

Last time in 2018 when these programs began to wane the markets (real estate, stocks, bonds, everything) began to wobble and then they had to provide more stimulus. To make matters worse, Powell listened to a politician (Trump’s demands). This is an institution that is supposed to be none partisan and have to interest of the country at heart. Talk about eroding confidence in an institution that is 100% dependent on confidence (the dollar).

There have been some mistakes and misguided policies that will make a future central banker very unpopular when they are forced to face the music and stop kicking the can down the road.

Had a few good responses like time I posed this question here. But all long term investors should be pondering a strategy to deal with the inevitable end of stimulus. Or, will they just print another 8 trillion next time? 16 trillion? Where does it end?

MF

#95 crowdedelevatorfartz on 09.13.20 at 1:41 pm

@#89 Billybob

Thanks. I couldn’t resist.

I live in the Lower Brainland and I didn’t realize that Boeing was testing(re-certifying?) the 737 Max here in Vancouver until after it was over.
Any scuttlebutt on the results yet?

#96 Barb on 09.13.20 at 2:16 pm

“Fire is part of the normal life cycle of a forest. So our policy of stamping out the little fires means eventually you get a big fire as the fuel accumulates. In the old days controlled burns and selective logging kept the forest managed. Now, you can’t have controlled burns because of nature and you can’t selective log because of… owls or something I guess.”

—————————————————————-

But, unlike say Ontario, west coast and interior forests are chiefly coniferous. Back east many forests have old oak and maples due to acidic soils. Deciduous trees have been shown to increase humidity and their large fallen leaves tend to keep floor moist. The opposite is true of fire and pine forests (monocultures).

There’s no government requirement in B.C. for forestry companies to plant anything but coniferous.

And yes hotter temperatures do make the fire fuel situation worse. But it gets hot(ter) in Ontario too, not nearly the fires of the West. Plus the jetstream in summer has been sending Pacific systems northward versus more easterly, as many of us recall as kids.

#97 Drinking on 09.13.20 at 6:26 pm

#78 Anti Felis catus

Thank you, I needed that today! I will not comment further due to offending the Feline lovers but……… :)