Money machines

Right on cue the first of the Big 6 banks did a triple-bagger. BeeMo announced Tuesday it made over $2 billion in the latest three-month period despite the recession and record low interest rates. Oh yeah, and a pandemic.

Earnings momentum was down a little from earlier, thanks mostly to the Third Wave, but that was expected. The real news was an epic reduction in lousy loans. That tsunami of rotten credit, defaults, bankruptcies, scuzzy payments and non-performing debt just never happened. So a year ago the bank had set aside $1.12 billion to deal with such troubles, but now that’s been slashed to just $60 million. The difference falls to the bottom line.

The Street expected profits of $2.75 a share, and BMO delivered $3.13. That’s called a beat. And as this pathetic blog spelled out yesterday, the banks themselves are proxies for the entire Canadian economy, since their long, probing fingers are everywhere. Tomorrow the Royal, CIBC and the green guys report. Expect more joy.

By the way, have you been following the story on Bay Street? Check this out…

Bay Street arcs to a new high. More coming?

The S&P/TSX has been hitting new pinnacles lately – six in the last month – and is on its merry way to the 20,000 mark for the first time ever. The banks are helping that happen, along with the railroads, online commerce innovator Shopify and a mess of value stocks. Now that oil has landed with some stability in the mid-$60 range, that’s also having a positive impact.

In fact, the end-of-this-damn-pandemic will be good for Canada. We’re still a commodity-rich place, with oil remaining our top export. And don’t forget about lithium. We have two millions tons of the stuff buried under Quebec and elsewhere, and in an EV world it’s a precious resource. In general as Covid fades global GDP will inflate, creating more demand for commodities of all kinds, and that’s good for Canada. So, yes, we’re more than just banks and condos.

(BTW, about 29% of the Toronto market is made up of financials. Around 13% is oil& gas. And here are the top 10 stocks in Canada: Shopify, RBC, TD, CN, Scotiabank, Enbridge, Brookfield, BMO, CP and Tc Energy.)

Now a reality check. Canada represents just 3% of the world’s equity markets. The US, in contrast, accounts for 56% of all stock trading. So why wouldn’t a portfolio have at least half its growth assets exposed to the States and only a tiny hunk to the land of house-horny beavers and Tim Hortons addicts?

Taxes are a part of it. There’s a big advantage to owning dividend-producing assets which are Canadian, since there’s a significant tax credit to be claimed. Then there’s currency risk. If you live, save, invest and plan to retire in Canadian dollars you don’t want the bulk of your wealth in another currency. Forex fluctuations can be Biblical. (Having said that, a prudent Canuck investor will keep about 20% of a total portfolio in US-denominated assets.) Also remember that the guys who make up almost a third of the Canadian market – banks like BeeMo – do a huge and roaring business outside of Canada. They are North American and (in some cases) global players. So by investing in the TSX you’re also going international.

These days my suspender-snapping, supercar-driving, trophy-wife enhanced (can I say that?) preppy portfolio manager buddies and I maintain an overall portfolio weighting of maple at 20%. A quarter of that is in REITs (real estate investment trusts) which the slimy little pathogen has made less expensive lately. The rest are in ETFs which provide broad exposure to the TSX and also specifically to dividend-producers, like the Big 6.

The American weighting is 22% and international is at 18%. As detailed here in a riveting and sexy post lately, the fixed-income portion is 40%, made up of preferreds with their seductive dividends, a little cash and some bonds, mostly short-duration or floating rate. The whole shebang is designed to generate relatively stable, predictable, boring long-term results without scaring the bejesus out of your spouse. The goal is something close to 7% a year, and that’s pretty much what’s happened – despite all of the volatility of our modern world. We assume people have two goals. Don’t lose money. And, make me a decent return. No crypto. No gold. No weed. No single stocks. No Elon. No NFTs.

The moral of this post: don’t owe the bank. Own it.

About the picture: “Chloe the cockatoo lives a pretty good life here on the most southern tip of Vancouver Island,” writes Caroline. “That’s Washington state directly across from us where the Olympic mountains can just be made out on this overcast day. The Juan de Fuca strait is ordinarily a busy waterway with the seaplanes and helicopters going back and forth all day but it’s been a lot quieter during COVID-19.  Those two tankers in the distance are headed to either Vancouver (to the left) or Asia (to the right). In this coveted location, we enjoy a wide variety of birds, otters, seals and the occasional pod of orcas that cruise by. There’s no place like home Garth, rented or bought.”

102 comments ↓

#1 crowdedelevatorfartz on 05.26.21 at 1:53 pm

“Beat” the Bank!
Love it.

#2 Classical Liberal Millennial on 05.26.21 at 1:56 pm

How much $$ do I need to have in my DIY portfolio for your suspender-sportin sidekick to take me as a client?

Millennial, eh? You’d better email me. [email protected]. – Garth

#3 TurnerNation on 05.26.21 at 2:07 pm

Orange man bad? CGI man bad. Another step in this WW3.

https://www.woodworkingnetwork.com/news/woodworking-industry-news/lumber-firms-applaud-home-builders-angry-us-moves-double-canadian
Lumber firms applaud, home builders angry as U.S. moves to double Canadian lumber tariffs
By Robert Dalheim May 24, 2021 | 10:34 am CDT

…………….
Just TWO More weeks guys. No really!

.BC Extends local travel ban to at least 15th June (cbc.ca)

— We were in training all this time. This ain’t temporary.

https://twitter.com/chicagobars/status/1397565462771290112?s=19
Chicago [email protected]
BREAKING: Mayor Lightfoot wants permanent 10pm curfew on sales of beer, wine, and spirits by grocery and convenience stores.
The 9pm curfew she imposed by emergency order that applied most of last year certainly solved all crime problems here. Unreal.
—————

T2 for life. Then T3. There will be no more elections. And/or ones not tainted with bogus ‘mail in ballots’.
This went oh-so-well in Newfoundland, the perfect isolated & homogeneous test zone didn’t it?
Is there nothing CV cannot do???

https://nationalpost.com/pmn/news-pmn/canada-news-pmn/house-of-commons-adopts-bloc-motion-against-holding-covid-19-pandemic-election
“House of Commons adopts Bloc motion against holding COVID-19 pandemic election”


— See how they mock us.

.Dr. Bonnie Henry pitches idea of ‘B.C. Hug Day’ (Canada) (richmond-news.com)

#4 Ponzius Pilatus on 05.26.21 at 2:27 pm

Bring on the Canadian Bank dividends.
Sweet.

#5 Ponzius Pilatus on 05.26.21 at 2:32 pm

#3 T2
Some things introduced during COVID will hopefully be permanent.
Like European type pedestrian only zones.
I say close down Granville and Robson Streets to traffic.

#6 wallflower on 05.26.21 at 2:32 pm

cockapoo?

#7 Doug t on 05.26.21 at 2:38 pm

That cockatoo is one weird lookin bird lol

#8 crowdedelevatorfartz on 05.26.21 at 2:52 pm

@#2 Classic Millennial
“How much $$ do I need to have in my DIY portfolio for your suspender-sportin sidekick to take me as a client?”

+++

Apparently Boomers and Millennials aren’t all that different when it comes to saving for retirement……….

#9 endgamer on 05.26.21 at 3:00 pm

End of pandemic? Lol, the real pandemic is just around the corner. What is coming can no longer be stopped.
ps. Dear Texas, can you adopt me? Canada sucks

#10 Keith on 05.26.21 at 3:16 pm

There are many forces in society putting paid to the secure society I grew up in – a global oversupply of labour, declining union density, the demise of pensions, benefits and secure employment. There are secular trends that are changing the world of work, and there does not seem to be anything that can work against them. Real incomes are stalled as real estate marches on.

I do take a certain hope in a surprising place, the markets. I talk to young people, who are surprisingly knowledgeable not just about what you expect, cryptocurrency and NFT’s, but also in speculative sectors like psychedelics, and the predecessor cannabis. Young people are learning about and participating in the investment markets at an age when we were not even thinking about it.

Markets have been democratized to an amazing degree in my lifetime – stocks used to be owned largely by the wealthiest in society, as an historically rare period of high real interest rates made paying down debt and cash as an investment attractive and risk free.

Now you can open an online investment account with almost no money, you can work with an advisor, there is access to a huge portion of the world of investments for most income levels. People who invest, become very interested in how markets work, and the impact of government action or inaction on the price of their holdings. It may become the norm to start investing as a teenager, and that may be the route to a more financially stable society that the one we have today.

#11 Darryl on 05.26.21 at 3:23 pm

Hey Garth, you talked about inflation in the past. What are your thoughts on current money supply etc?

#12 whiterice197 on 05.26.21 at 3:33 pm

At the end of your post, when you write “no crypto,” I assume you mean bitcoin, dogecoin, and ethereum. Could you go into why decentralized finance (specifically using stablecoins that are pegged to the USD and are backed with real monetary collateral), earning between 3-10% with no volatility wouldn’t be an option, at least for the cash portion of the portfolio?

Kevin O’Leary is now allocating 3% of his business portfolio to btc and a similar percentage to DeFi applications for his cash that would otherwise be earning 0%, all run through smart contracts. I think in the future once it is easier to access these protocols with a better user experience, they will become more mainstream, but these are real use, practical applications that are available today.

Thanks again for considering the question, to be clear I’m an advocate for a B and D portfolio, but just have conviction that DeFi will have a role to play in the future.

#13 Prince Polo on 05.26.21 at 3:35 pm

Took my Raisin Bran’s two scoops and shovelled the big5 banks into my portfolio’s furnace in April 2020. When will OSFI release the banks from the “ludacris” (FF9 shoutout) dividend freeze, and thus, reveal the next leg higher for the financials?

#14 Prince Polo on 05.26.21 at 3:38 pm

Back-to-back uplifting posts?! Keep ‘me coming, good sir! This is the summer of letting’r rrrrrrrrrrrrrip!

#15 Ustabe on 05.26.21 at 3:52 pm

.BC Extends local travel ban to at least 15th June (cbc.ca)

Not really close to what is going on in BC. A short term “circuit breaker” inter health region travel ban was just lifted.

All throughout this past year I haven’t missed a haircut, physio, massage, Dr appointment. Until this circuit breaker we enjoyed indoor dining at local joints from cafes to pubs to white table cloth places and now can again.

And now back to packing the teardrop trailer for a north Island road trip.

#16 Jake on 05.26.21 at 3:59 pm

Not many covid recovery plays left but some reits, like MRT.UN, are still on sale. A lot of people are going to get called back to work this Fall and the mall, well ask the main person in the house who shops for clothes, perfumes, shoes, etc.. they will tell you they can’t wait to get back to the mall again.

#17 I’m not a doc on 05.26.21 at 4:06 pm

#10 Keith

Unfortunately financial literacy is not taught in school or in homes for that matter in most cases. Debt is the biggest business and starts early with that huge student loan. Then all the graduates flood the market looking for the same job year after year but end up at McDonald’s with a $50000 student loan and a CC. What’s a piggy bank and rainy day account? Want something charge it, want a car finance it, want another house leverage it, monthly cash flow low just pull from the HELOC. All is good. As sir Garth says “don’t owe the bank. Own it.”

#18 JSS on 05.26.21 at 4:07 pm

When will Canadian banks be allowed increase dividends?

and how about a stock split from a Canadian bank? Any Canadian bank?

#19 Chameleon on 05.26.21 at 4:11 pm

#6 wallflower

cockapoo?

——

Don’t bother wallflower. Dog owners ALWAYS forget about the “poo” part. It is habitual.

If it is one thing I’ve learned is that no dog owner bats a thousand when it comes to scooping it.

#20 Timmy on 05.26.21 at 4:12 pm

So why did BMO only move 1.4 percent with such a huge increase in profit? Doesn’t that say something about the market?

Yes. We knew it was coming. – Garth

#21 Silent Running on 05.26.21 at 4:13 pm

Super up-beat and positive today Garth.

I’m going to go run 5K after reading this to run off the positivity!

#22 alexinvestor on 05.26.21 at 4:22 pm

So in the middle of a pandemic and shutdown, people somehow scraped together enough cash to pay the banksters. But what happens when interest rates rise on this now inflated debt ? Oh – oh.

I’ve always wondered how exposed the banks are to say, a 10% mortgage rate scenario that busts overleverage homeowners. Sure there’s mortgage insurers, but they will bust too … the risk is just too concentrated.

Bank margins and profitability increase with rates. Bring them on. – Garth

#23 Brett in Calgary on 05.26.21 at 4:23 pm

Sweet, sweet divvies!

#24 Faron on 05.26.21 at 4:43 pm

#18 JSS on 05.26.21 at 4:07 pm

When will Canadian banks be allowed increase dividends?

#13 Prince Polo on 05.26.21 at 3:35 pm

Why would a dividend hike cause the equity price to increase? Sure, there would be some good sentiment there for the stability of the corps, but the better bet for equity price bumps would be share buybacks.

As for share price, why not buy ZEB and a lil ZBK for ~$30 a pop and catch ’em all pokemon style? Great thing about oligopolies is there are but a few cash firehoses to choose from and without anti trust protections, the businesses are remarkably similar. Likewise for the big three telecoms. Bit of an exaggeration, but not too far off the mark.

#25 I’m not a doc on 05.26.21 at 4:46 pm

My XIU just keeps going upa upa upa

#26 Cici on 05.26.21 at 4:53 pm

#6 Wallflower

LOL, me too, I was so confused. I looked at the photo twice and was like, “where’s the damn bird?”

#27 saskatoon on 05.26.21 at 4:54 pm

fingers?

don’t you mean tentacles, garth?

#28 Lee on 05.26.21 at 5:14 pm

I own crypto, gold, weed, single stocks and Tesla but no NFTs. Other than single stocks, they only make up about 5% of my portfolio. Would hate to miss out if Tilray or Tesla go to the moon. I expect crypto to crash, soon. My portfolio has been flat for a year.

#29 Wrk.dover on 05.26.21 at 5:28 pm

A friend cares for a dog like that occasionally. When he brings it around here, it ignores people, but never wanders more than 50 feet from them either.

Every time it sees a bird at the feeder, it sits to stare, as if it has never seen one before.

Every bird, repeat.

Nice little ‘person’.

#30 Paddy on 05.26.21 at 5:31 pm

It’s appears my purchasing of a Canadian equity ETF when the market was close to bottom last year has certainly paid off thus far….bring on the growth and those sweet sweet tax efficient Canadian dividends. Tried to inform my friends of the deals at the time but they weren’t having none of it….said it was “too risky”…..oh well

#31 When Will They Raise Rates? on 05.26.21 at 5:32 pm

What % allocation would you recommend to early investors now looking to lighten up on crypto?

#32 Andrewski on 05.26.21 at 5:35 pm

My wise Dad always said, “go ahead and hate the banks, but buy their stock, as you’ll love their dividends”.
So glad I listened. Thanks Dad.

#33 TurnerNation on 05.26.21 at 5:39 pm

— For Dolce & the Numbers crew. Once again it’s been said the world was taken over by way of only two words: Mandatory, and Asymptomatic. .7% really? THIS is why schools (& the world) are shut down? Not really.

—Household Transmission of SARS-CoV-2:

Symptomatic at a rate of 18%
Asymptomatic at a rate of 0.7%

Estimated mean household secondary attack rate from symptomatic index cases (18.0%; 95% CI, 14.2%-22.1%) was significantly higher than from asymptomatic or presymptomatic index cases (0.7%; 95% CI, 0%-4.9%; P < .001), although there were few studies in the latter group. These findings are consistent with other household studies (28,70) reporting asymptomatic index cases as having limited role in household transmission.

https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2774102

#34 Danger Dan on 05.26.21 at 5:42 pm

Garth, thanks largely to your galvanizing sermons I jumped in with both feet not long ago to finally start a TFSA and made my maple picks first –

Banks, telecomms, utilities, stuff that comes out of the ground (zinc, lithium, copper, gold/silver, uranium)… and supermarkets, because it seemed silly not to invest in the companies that are always on my VISA bill.

Fortunately for me maple is on a tear right now but I have slowly begun to diversify, following Ryan Lewenza’s ETF list as a rough guide –

https://www.investmentexecutive.com/wp-content/uploads/sites/3/2019/10/lewenza_chart.jpg

For what it’s worth, half my TFSA budget came from dollar-cost averaging Bitcoin and apparently I am invested in WEED (Canopy) through a global healthcare ETF.

There is certainly a lot of empty hype blowing these industries up right now, but I also think they are based on good ideas that can be leveraged for real innovation in the future.

When the dotcom boom ended, did anyone think web companies would be leading the NASDAQ 20 years later? Who knows what might happen in the next 20.

That ETF list is two years old. Things have changed. – Garth

#35 Stone on 05.26.21 at 6:03 pm

#28 Lee on 05.26.21 at 5:14 pm
I own crypto, gold, weed, single stocks and Tesla but no NFTs. Other than single stocks, they only make up about 5% of my portfolio. Would hate to miss out if Tilray or Tesla go to the moon. I expect crypto to crash, soon. My portfolio has been flat for a year.

———

Sorry to hear that. I’m up 12.19% ytd. B&D is ETFs. I would hate to miss out on yummy steady returns.

#36 Nonplused on 05.26.21 at 6:18 pm

#17 I’m not a doc on 05.26.21 at 4:06 pm
#10 Keith

“Then all the graduates flood the market looking for the same job year after year but end up at McDonald’s with a $50000 student loan and a CC.”

What, pray tell, shall we do with all the graduates if they are not to look for a job? And don’t forget some people occasionally retire or die. Add a little economic growth in there and the country needs graduates.

You have to work at it to end up with a $50,000 student loan in Canada. Maybe if you do post-grad studies you can get there. Certainly if you live in your parent’s basement and go to school locally you can stay well under that. Or get a trade! You can make good money installing furnaces or fixing cars.

#37 Kate on 05.26.21 at 6:23 pm

The anti-testa stuff isn’t going to age well. Can we do a check-in in 2, then 5, and then again in 10 years please?
My pre 2020 TSLA has swelled to an enormous amount and I don’t plan on selling it within the next decade, despite it’s already 10x growth.

One doesn’t have to be an Elon “fan boy”, or even like him a little bit to understand a good thing. Unless you’re Gordon Johnson!

The crypto thing.. I also don’t understand why people diss it when they don’t know enough about it. I don’t know enough about it so I don’t promote it, or invest in it, but for the exact same reason, I don’t hate on it.

Someone asked if Garth would speak more about crypto.. I’d like to see that too please, rather than just “crypto bad”, at least let us know what you have in your noggin that makes you say what you do.

#38 Flat Earth Society on 05.26.21 at 6:41 pm

Did anyone see the “super flower blood moon eclipse” last night? Me neither. It was conveniently overcast. One more NASA conspiracy. Don’t believe the photos you see on the internet.

Also, notice how now that everyone has a 4k camera in there pocket at all times, Big Foot sightings have all but disappeared? It’s called the “show me the pictures” phenomena. But grainy night time black and white videos of UFO’s are suddenly on the rise again? Why don’t the UFO’s ever fly in the day time? And why wouldn’t there be multiple videos and eye witness accounts like there were on 9/11? There weren’t as many cameras floating around back then but they still managed to get TV quality footage.

Stanley Kubrick isn’t dead. He’s still filming for NASA in the Arizona desert. Same old moon set only now we’re to believe there is an autonomous rover with a toy helicopter on Mars. Ya right.

Oh and covid is a hoax!

(sarc/off)

#39 Yukon Elvis on 05.26.21 at 7:02 pm

I tole anyone who would listen to buy the banks last spring when the tsx was in the dumper. I bought TD @ 60 paying 6% div now @89, BNS @ 65 paying 6% div now @80, and CM @ 80 and then again @70 paying 6% div now at @137. My losers are ENB bought @48 paying 7% div now @47 and TRP @62 paying 6% div now @61. I should take profits and invest in something else but I don’t see any safe bargoons out there right now. I guess I can sit around and wait at 6% for a while. I have never bought bonds, preferreds, reits, or etfs.

#40 Tudval on 05.26.21 at 7:02 pm

Oh, about bank profitability improving with higher rates.. you have another thing coming. Just watch, as refinancing dries up, also mortgage penalties, new loans etc… Yeah, it’s different this time, because rates won’t go up on fundamentals, but on increased risks. Put that on your wall: 30% haircut if we see another 1% rate increase.

#41 ElGatoNerodeYVR on 05.26.21 at 7:03 pm

#38 Flat Earth Society on 05.26.21 at 6:41 pm
======
Let’s answer in the same spirit as the post:
Big Foot : easy one, it evolved and it knows now to stay away from real people and their screaming kids and whiny millennials complaining loudly about their student loans in the middle of the BC Great Bear rainforest( or whatever name they made up for it)
UFO’s : now that every mujadehin has a personal rocket launcher courtesy of the globalist crowd they are staying away, oh and they can detect the radiation from your cell phone and avoid
Mars:I have to wonder if the Chinese build their own set, leased the same one in Arizona or just bought the American one, moved it to China and rented it out back for a profit

#42 Nonplused on 05.26.21 at 7:15 pm

#37 Kate on 05.26.21 at 6:23 pm

“The anti-testa stuff isn’t going to age well. Can we do a check-in in 2, then 5, and then again in 10 years please?”

Well, I think the Ford F150 “Lightning” has effectively killed the Tesla Cybertruck. The Tesla semi has competition. Everyone and their dog is pushing out electric cars.

The “Lightning” is even going to be able to provide backup power to your house with the right charging station. I think this will be extremely popular in Texas and California. Mind you I am sure Tesla can adopt this ability pretty quickly as well.

Tesla’s big advantage was that they pushed hard into EV’s when nobody was really thinking about them yet. But there is not much proprietary technology. You can’t really patent a lithium battery or electric motor.

Heck Tesla didn’t even put the first car in space! NASA put one on the moon! And actually had people drive it there! And it was an EV!

#43 kommykim on 05.26.21 at 7:25 pm

RE: #31 When Will They Raise Rates? on 05.26.21 at 5:32 pm
What % allocation would you recommend to early investors now looking to lighten up on crypto?

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

I’m pretty sure Garth recommends that you hold 0% crypto..

#44 Faron on 05.26.21 at 7:26 pm

#37 Kate on 05.26.21 at 6:23 pm

Someone asked if Garth would speak more about crypto.. I’d like to see that too please, rather than just “crypto bad”, at least let us know what you have in your noggin that makes you say what you do.

I can’t speak for Garth, but I’m guessing that with his “extended life and professional experience” looking at markets he’s seen a bubble or two come and go. As they inflate, everyone is convinced the asset is the next best thing and they make all kinds of justifications to themselves and others for why they think this and why everyone who doesn’t should think their way. But the real backing is “number go up, me like” which it will… until it doesn’t.

That said, I just read an interesting thread on Twitter about crypto market manipulation through coordinated media placements and targeted coin dumps aimed at low-liquidity exchanges. The latter works by forcing the price down a large amount in one exchange that then spreads as a contagion. Combined, some folks seem to have figured out how to make it look like the sky is falling enough to force enough selling to get prices where they want them for their purchases and then take pressure off and watch the price rip again. What this tells you is that there may be no real price discovery in the “asset” thus you had better be ready for most anything to come your way.

Full disclosure, I hold $200 of ETH and have watched it go through quite a roller coaster the past month. Currently right back where it started.

#45 Flat Earth Society on 05.26.21 at 7:34 pm

#41 ElGatoNerodeYVR on 05.26.21 at 7:03 pm
#38 Flat Earth Society on 05.26.21 at 6:41 pm

Hmm, interesting hypothesis. Or we could have just proven why some people are stuck at minimum wage.

Interesting factoid, the US army was one of the first organizations to take an interest in IQ testing. The reason being that people below I think it was 70 were unable to complete any meaningful tasks and were actually dangerous to the lives of other soldiers in combat situations.

So if 70 makes you a complete idiot, 100 is average, but you have to be 145+ to be a genius, the curve is not “normal”. It has “fat tails”.

But we at the Flat Earth Society consider IQ to also be a hoax. And “fat tails”. “Fat tails” are also a hoax and Nicholas Taleb is one of the great hoaxers of all time.

#46 Danger Dan on 05.26.21 at 7:48 pm

That ETF list is two years old. Things have changed. – Garth
—————————

Thanks, I keep that in mind and am mainly using the list as a reference for what sort of ETFs a B&D portfolio looks like.

I’ve got a habit of looking back and comparing/contrasting older recommendations with newer intel.

Even been thumbing through a dog-eared copy of your 1999 RRSP Guide looking at how things have changed and building ideas on what changes the future might hold.

#47 i'm not a doc on 05.26.21 at 7:49 pm

#nonplused

“Then all the graduates flood the market looking for the same job year after year but end up at McDonald’s with a $50000 student loan and a CC.”

What, pray tell, shall we do with all the graduates if they are not to look for a job? And don’t forget some people occasionally retire or die. Add a little economic growth in there and the country needs graduates.

You have to work at it to end up with a $50,000 student loan in Canada. Maybe if you do post-grad studies you can get there. Certainly if you live in your parent’s basement and go to school locally you can stay well under that. Or get a trade! You can make good money installing furnaces or fixing cars.

+++++++++++

What i’m getting at is if you are gonna spend your money or borrow money on post-ed do so wisely. There are hell of a lot of post-ed studies that mean absolutely nothing in the real World for job prospects and no shortage of enrolments. I know a lot of “professional” students with 8 years of loans coupled with majors in something like who knows, Library Science and Music.
The letters do look good after their name however.

A tradesman will make much more money in whatever that might be, (electrician, millwright, HVAC, mechanic etc…) in comparison to many of these choices. These are jobs that need real hands and won’t be replaced anytime soon by a computer. These folk can make good money providing much needed services and learning real World life skills with no debt all while living at home fresh out of school. You save until you have a big enough cushion to fly the coop and the smart will eventually run their own show. Problem is there are not enough willing to use their hands and get up off their A$$ and work for it anymore. It’s just to old school I guess…

#48 mark on 05.26.21 at 8:01 pm

Last I checked a cockatoo was a bird. All these poos and toos and doodles is getting ridiculous.

#49 R on 05.26.21 at 8:03 pm

37 Kate:
The best thing that has happened for Tesla is the Ford 150 Lightning ! Everyone has been saying the competition is comming, and Ford’s best shot is this? This is Ford’s, the worlds biggest,best pick up truck mass producer has to offer against to the Cyber truck ? I have never been more confident about Tesla , and Ford helped me in that process.

#50 T-Rev on 05.26.21 at 8:25 pm

Alberta to be fully open by July 1, provided 70% vaccination rate by June 16th and less than 500 hospitalizations. We’re at 50% now and climbing by 1.5%-2% per day. This will taper off as we run out of willing participants, but right now we’re on track. Hopeful that enough people do the right thing and roll up their sleeve for the common good.

#51 When Will They Raise Rates? on 05.26.21 at 8:26 pm

#43 kommykim on 05.26.21 at 7:25 pm

RE: #31 When Will They Raise Rates? on 05.26.21 at 5:32 pm
What % allocation would you recommend to early investors now looking to lighten up on crypto?

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

I’m pretty sure Garth recommends that you hold 0% crypto
__________

That was then… Now that every institution, hedge fund and billionaire is holding, I figured he might have revised his allocations to include this asset class.

#52 Drill Baby Drill on 05.26.21 at 8:26 pm

That white dog today has a Sooke look.

#53 Nonplused on 05.26.21 at 8:31 pm

#47 i’m not a doc on 05.26.21 at 7:49 pm

I agree with your points but you must have missed my comment at #86 Nonplused on 05.24.21 at 7:34 pm (so 2 days ago).

Lifestyle and experience are non-negotiable for millennials. The way they see it they only get one chance to follow their dreams and either take university level arts or hike around Nepal. They look at what we did, Gen-X and boomers, and think we wasted our lives in dreary work-a-day conditions. They know the work-a-day monster is coming for them too, but why not put it off?

In some ways I think they are being smart. Hiking in Nepal or cat skiing isn’t a guarantee when you are 65. You could end up just sitting by the pool on a floating hotel. Or be dead.

There are experiences that belong only to the youthful and fit. Millennials seem to know this and are willing to mortgage the uncertain future for the certainty of experiences today. I’m not sure that is wrong, it’s just the financing wasn’t available to me.

The only time I come into conflict with this philosophy is when they decide I should have to pay for it. Nope. I paid the piper up front, you can pay him for your tab now.

#54 the Jaguar on 05.26.21 at 8:45 pm

Extra! Extra! Read all about it!
Alberta re-opens in a three stage plan.

https://calgaryherald.com/news/local-news/watch-live-at-1130-a-m-kenney-to-announce-reopening-strategy-for-alberta

The Greatest Outdoor Show on Earth won’t be denied! Oh dear. Garth, are you the official Parade Marshall this year? I submitted your name.

This will really bring the haters out, but what’s a body to do?
We never were cut out to be the hand wringing type in this province. No doubt there will be a hiccup or two and lots of criticism with the usual ‘Monday morning quarterbacking,’ but appears we are taking the David Farragut approach with “Damn the torpedoes, full speed ahead!” They say kids 12 & up are now 58% vaxxed. Once we get to 70% you can burn your bra.
You, too CEF!

#55 Sail Away on 05.26.21 at 8:53 pm

#49 R on 05.26.21 at 8:03 pm

37 Kate:
The best thing that has happened for Tesla is the Ford 150 Lightning ! Everyone has been saying the competition is comming, and Ford’s best shot is this? This is Ford’s, the worlds biggest,best pick up truck mass producer has to offer against to the Cyber truck ? I have never been more confident about Tesla , and Ford helped me in that process.

———

No, no… this is something completely new and innovative: A vehicle that looks exactly like their other vehicle and functions similarly but will be significantly more expensive, has far less range, is much heavier for those offroad mudholes and cannot be taken anywhere remote because… range.

I guess you could always get a Lightning for city driving and a gas F150 for out of town?

Our Tesla never leaves pavement. Our 4Runner does everything else. Would we want an electric 4Runner for town? Not a chance.

#56 Steerage on 05.26.21 at 8:58 pm

#53 Nonplused on 05.26.21 at 8:31 pm
#47 i’m not a doc on 05.26.21 at 7:49 pm

I agree with your points but you must have missed my comment at #86 Nonplused on 05.24.21 at 7:34 pm (so 2 days ago).

Lifestyle and experience are non-negotiable for millennials. The way they see it they only get one chance to follow their dreams and either take university level arts or hike around Nepal. They look at what we did, Gen-X and boomers, and think we wasted our lives in dreary work-a-day conditions. They know the work-a-day monster is coming for them too, but why not put it off?

In some ways I think they are being smart. Hiking in Nepal or cat skiing isn’t a guarantee when you are 65. You could end up just sitting by the pool on a floating hotel. Or be dead.

There are experiences that belong only to the youthful and fit. Millennials seem to know this and are willing to mortgage the uncertain future for the certainty of experiences today. I’m not sure that is wrong, it’s just the financing wasn’t available to me.

The only time I come into conflict with this philosophy is when they decide I should have to pay for it. Nope. I paid the piper up front, you can pay him for your tab now.
….

Eh… boomers were hippies…. ya know, drugs, sex and rock n roll… tune in and drop out…. free love for all…

Well so I was told … i can’t recall actually….

#57 whiterice197 on 05.26.21 at 9:26 pm

#37 Kate on 05.26.21 at 6:23 pm

I think Garth makes a good point in that there is much about crypto that is backed by nothing. For example, those who are buying dogecoin, which has no real use cases, or other smaller crypto like safemoon or shibu inu are simply meme coins that are just pumped by tiktok influencers who are mostly likely getting paid to make those videos.

However, just like many new transformative technologies, there are legit real use cases. As Garth said, people are putting their money into the stock market/investing in part because that is the only place they can get a good return on their money. But with decentralized finance, which takes out the need for a bank/middle man, using smart contracts can yield much higher interest rates on cash that would otherwise just be sitting in a checking account. Over time, these applications can change the way we earn interest on our money, take out loans, purchase real estate, and other real life use cases. This is one of the reasons many are excited specifically about ethereum, where most of DeFi is being built.

#58 Jack on 05.26.21 at 9:28 pm

The tsx is up about 12% since the pandemic hit. But inflation since was far more than that. So who’s ahead? I guess if you timed the market and bought at the bottom you’re doing OK… but you can’t time the markets.

#59 crowdedelevatorfartz on 05.26.21 at 9:39 pm

@#49 R
“This is Ford’s, the worlds biggest,best pick up truck mass producer has to offer against to the Cyber truck ? I have never been more confident about Tesla , and Ford helped me in that process.”

+++

You are kidding right?

The Tesla “cyberpunk” truck ….whatever that is.
The most ridiculously hyped WTF moment since the “world changing” Segway was rolled out to “change humanity forever”…

Give me a break.

Urban contractors driving less than 400kms per day to jobsites will want a real truck that can carry things like tools and sheets of plywood.
Ford has been selling trucks longer than Elon’s parents have been alive.
I wouldnt be counting them out yet.

Elons abortive attempt at wooing truck owners with a cyber Tonka truck is a disappointing, miserable fail.

#60 Yuus bin Haad on 05.26.21 at 9:47 pm

C’mon kids, B&D is nice, but it can’t hurt to punt a little now-and-then

#61 Sail Away on 05.26.21 at 9:57 pm

#58 Jack on 05.26.21 at 9:28 pm

The tsx is up about 12% since the pandemic hit. But inflation since was far more than that. So who’s ahead? I guess if you timed the market and bought at the bottom you’re doing OK… but you can’t time the markets.

———–

Those numbers and any conclusions based on the numbers are wildly inaccurate.

#62 Ustabe on 05.26.21 at 10:04 pm

Off Topic Story Time.

So Jeff Bezos/Amazon is buying MGM.
So MGM is a media company that would have loads of archival material stored away.

A portion of those archives would be the edits/outtakes and deleted scenes from The Apprentice.

Its going to be an interesting summer…criminal proceedings in New York and Amazon Prime dripping out episodes of The Apprentice ReBoot.

#63 NoName on 05.26.21 at 10:13 pm

Today in history

CAR THAT CHANGED A WORLD FORD MODEL T

The final Model T went down the assembly line on May 26, 1927

https://www.youtube.com/watch?v=c8ObnK8RSU0

#64 Tyberius on 05.26.21 at 10:23 pm

We assume people have two goals. Don’t lose money. And, make me a decent return. No crypto. No gold. No weed. No single stocks. No Elon. No NFTs.

Nah, I have a much simpler goal: just make money (which only implies gains>losses, overall).

No crypto, some gold, some weed, and now into mushrooms (psychadelics are in vogue, I’m told).
Oh, and lotsa cash, waiting for the inevitable correction (which could morph into a ‘crash’ – if that term is allowed on a financial blog)

#65 Faron on 05.26.21 at 10:25 pm

#55 Sail Away on 05.26.21 at 8:53 pm

#49 R on 05.26.21 at 8:03 pm

37 Kate

Well, some prefer to purchase things that do or will exist. How long ago now did TSLA announce the cyberdoink? Sweet windoze tho amirite? But hey, Elon is a genius DOGE hodler and BTC investor who cares muchly about the idiots dying using “FSD”. He’s a capable genius as evidenced by SA’s loyal grovelling at dada Musk’s feet.

BTW:
YTD $F: 63%.
YTD $TSLA: -15%

Should see a nice TSLA runup in coming weeks now that meme stonks are popping again. But, ultimately, TSLA will be sold for scrap unless Elon can buy enough influence to keep regulators away from his fraud.

#66 JoinEm on 05.26.21 at 10:36 pm

What are the big 6 dividend producers?

#67 Kate on 05.26.21 at 10:36 pm

I appreciate people offering their thoughts on Tesla and crypto, however I’d love it if Garth could give his own detailed thoughts behind his opinions rather than constantly poo poo Tesla and crypto (which are two totally separate things.. I’ve just noticed he gets snarky about both).
I don’t mind if he has criticism or even straight up disdain of something, but can only respect it if he can explain the why behind it. Then I can gauge that by cross referencing with others who are well informed on the topic (whether they share the same option or not, doesn’t matter).

#68 crossbordershopper on 05.26.21 at 10:37 pm

i find the biggest problem in canada is lack of opportunity. Canadian banks are notorious stingy when it comes to bank loans. Real estate, no problem, but anything else, is a waste of time. and rightfully so, I would never lend money to anyone in Canada to start a small business.
Canadian banks are secure and good investments because well, they are an oligopoly, never needing to be really competitive, organize amongst themselves and the banking laws to always dictage and manage as much as possible in our economy and indirectly our society. If they control the money, they control you. yes you can be hapyy buying some shares and think your sticking it to the man or something,
or you can go to usa, get various sba loans etc, buy a business, make 200 K net, pay little tax and live a much better life. for you and your children. You could stay in Canada, driving up and down the 401 to work, to pay for overpriced homes where some builder, banker, developer, govt has jacked up the prices.
ive know guys who started with nothing, gone to florida, and in 5 years are set, paid off house, paid off business, work part time and make good money. people in canada talk about canada pension plan and stuff, nickels and dimes.
oh but the canadian banks are safe. ok, good for them.not for you. clip your 5% coupon and think your rich.

#69 Kate on 05.26.21 at 10:42 pm

To the elevator fart guy: I’m not sure you’re the target market for the cybertruck… which is a shame because it will probably have a pretty sweet air filter system like the others.

#70 Km on 05.26.21 at 11:05 pm

@pilate, some of us actually need to use cars for work etc and live downtown where parking is already crazy as it is with rarely used bike lanes and bike shares taking up parking spots all over the city. We are looking forward to seeing the outdoor patios gone and with them hopefully the new bike lanes to compliment the bike lanes that were literally already usable and parallel to the new ones built. Close down Granville and Robson.. pull your head out of your butt for once please, this city is one of the most walkable I have been in across Canada.

#71 Nonplused on 05.27.21 at 12:18 am

#56 Steerage on 05.26.21 at 8:58 pm
#53 Nonplused on 05.26.21 at 8:31 pm
#47 i’m not a doc on 05.26.21 at 7:49 pm

Eh… boomers were hippies…. ya know, drugs, sex and rock n roll… tune in and drop out…. free love for all…

Well so I was told … i can’t recall actually….

———————————-

My parents are Boomers I can tell you for sure it was all Jesus and patriarchy and hard work.

One little concert did not define a generation. I suppose one hiking trip to Nepal shouldn’t either.

I suppose it would do some good, when we see some SJW in pink or green hair on a Tictock video decrying the plight of transgender women in women’s sports, we should all step back and say “that is a very small minority”. My 15 year old son plays a lot of video games. But he also knows how to mow the lawn.

#72 R on 05.27.21 at 1:43 am

#59 crowdedelevatorfartz:
Pre orders on a cyber truck are currently greater than a million to Ford $5,000. Compared on price, range, acceleration and profitability , Cyber Truck beats Ford . By trying to look like a Ford 150, The Lightning has a co-efficient of drag of .55-.59, where as the Cyber Truck’s is around .35. This matters on the air resistance on the truck at highway speeds. And the drag affects the over all range for a given battery. Eventually, the Ford F150 will just become a “Gateway” drug to the Cyber Truck. Ford owners are going to say ” I should have bought a Cyber “IMHO

#73 Jack on 05.27.21 at 6:56 am

Re

61 Sail Away on 05.26.21 at 9:57 pm
#58 Jack on 05.26.21 at 9:28 pm

The tsx is up about 12% since the pandemic hit. But inflation since was far more than that. So who’s ahead? I guess if you timed the market and bought at the bottom you’re doing OK… but you can’t time the markets.

———–

Those numbers and any conclusions based on the numbers are wildly inaccurate.

Really? Meant to say just before the pandemic hit…
Tsx = 17,848 Feb 14, 2020, tsx today 19,748. Up 12 percent in 15 months.

I guess you believe government inflation numbers too? Get out there and buy something. Stocks aren’t going up in value, just price.

#74 Prince Polo on 05.27.21 at 7:10 am

#24 Faron on 05.26.21 at 4:43 pm
Why would a dividend hike cause the equity price to increase? Sure, there would be some good sentiment there for the stability of the corps, but the better bet for equity price bumps would be share buybacks.

I was banking on retail investors bidding up the stock price as they desperately search for higher yield in a near-ZIRP world. What you wrote sounds swell too – a double-dose rrrrrrip on price!

#75 the Jaguar on 05.27.21 at 7:59 am

Shuuuushh. Don’t tell anyone. From this mornings NP

“Canada’s biggest pension managers boosted their investments in the country’s major oilsands companies in the first quarter of 2021, raising questions about the funds’ recent commitments to greening their portfolios.”

#76 Sail Away on 05.27.21 at 8:05 am

#65 Faron on 05.26.21 at 10:25 pm

….Elon is a genius DOGE hodler and BTC investor who cares muchly about the idiots dying using “FSD”. He’s a capable genius as evidenced by SA’s loyal grovelling at dada Musk’s feet.

———

Uncle E has gifted me bags of filthy lucre. Respect. And FSD is Elon Thee Stallion’s best feature.

Henry Ford famously paid his workers well so they could buy a Ford. Our hero also did something similar- anyone who invested $5k in TSLA last year could now be driving their fully-paid Tesla. I tried to tell you.

#77 crowdedelevatorfartz on 05.27.21 at 8:21 am

@#69 Kate
“To the elevator fart guy: I’m not sure you’re the target market for the cybertruck… ”

+++

Its actually Fartz but thats ok.

I’m not sure even your hero Elon knows who his target market is with that hideous vehicle he’s dubbed a “truck”.

Lets watch Ford’s F150 sales numbers and Elon’s “truck” sales numbers over the next few years.
I’m thinking the F150E will be kicking ass and taking names.
Speaking of money.
I’ve also noticed Elon’s backed off from accepting your beloved crypto for his vehicles…..how long did that take….3 months?

Have any of his companies actually made a profit yet?
The insane share price valuations notwithstanding?

#78 crowdedelevatorfartz on 05.27.21 at 8:35 am

@#72 R
“Pre orders on a cyber truck are currently greater than a million to Fords 5,000. Compared on price, range, acceleration and profitability , Cyber Truck beats Ford .
++++

Lots of Elon Cyber fans. Amusing.

“Pre Order” being the operative word.
When was the big Cyber “reveal”? Two years ago?

Ford revealed their F150E two WEEKS ago?
They plan on hitting the salesrooms this Fall.
The F150 has been the best selling truck in the world for years.
So I’m thinking Ford might…juuuuuust might know something about flogging trucks to customers.
Ever sit in an F150 and then a high end Tesla?
Its like a comfy Ford couch vs a Tesla barstool.
I’m thinking there are more truck driving Bubba’s financing F150E’s than Cyberpunks laying out $50G’s US for hideous Tonka toys with great “drag coefficient”.
But hey!
There are a least enough bitcoins floating around to buy a Tesla Cyberpunk “truck”….. oh, right…. never mind.

#79 NSNG on 05.27.21 at 9:19 am

Debt slave blood money wins again!

#80 Dharma Bum on 05.27.21 at 9:21 am

#68 crossbordershopper

“…or you can go to usa, get various sba loans etc, buy a business, make 200 K net, pay little tax and live a much better life.”
—————————————————————————

Exactly how does an average Canadian go about implementing this plan.

Say, just say, I was interested in moving to Arizona. How do I do it? I don’t need a job, so I wouldn’t have to be employed in the U.S. Would that make it simpler to emigrate? Would I have to buy a business and employ people? What’s the deal? You say “just move to the USA”, but how can this be done?

I need answers, dammit.

#81 crowdedelevatorfartz on 05.27.21 at 9:37 am

@#80 Dharma Bee
“You say “just move to the USA”, but how can this be done?

I need answers, dammit.”

+++

If you’re over 65…. have LOTS of money set aside for medical insurance.

#82 R on 05.27.21 at 10:14 am

#78 crowdedelevatorfartz:
The Ford F 150 was designed by a marketing team. This is Ford’s MOST IMPORTANT Electric Vehicle! . Virtually all of Ford’s profits come from the F150, so this is their one big shot must get right. For the sake of Ford ,and the whole economic infrastructure it supports: the sub contractors ,the good paying union jobs, the dealerships, the advertising media ecosystem dependent on Ford, etc., I hope you are more right than I believe I am. To transition the world away from fossil fuels and to replace them with renewable energy, the economy needs a robust renewable commercial response.

#83 Yukon Elvis on 05.27.21 at 10:24 am

#66 JoinEm on 05.26.21 at 10:36 pm
What are the big 6 dividend producers?
……………………..

https://www.dividendyields.org/tsx60-best-dividend-stocks/

#84 Ponzius Pilatus on 05.27.21 at 10:37 am

63 NoName on 05.26.21 at 10:13 pm
Today in history

CAR THAT CHANGED A WORLD FORD MODEL T

The final Model T went down the assembly line on May 26, 1927
————————-
Still alive in the F-150.
Ugliest car ever build.

#85 Doug in London on 05.27.21 at 10:37 am

Stocks going up, that should be a boost to my portfolio of stocks and ETFs I scooped up 14 months ago when they were on sale.

These days my suspender-snapping, supercar-driving, trophy-wife enhanced (can I say that?) preppy portfolio manager buddies and I maintain an overall portfolio weighting of maple at 20%.
———————————————————-
That’s quite funny, I’ll cute and paste that comment away in my archives of famous and funny quotes.

#86 Blacksheep on 05.27.21 at 10:43 am

“I think Garth makes a good point in that there is much about crypto that is backed by nothing.”
——————————
“Backed by nothing”.

Here are some differences I see between a sovereign currency like the US$ vs Bitcoin or Gold?

-There is only X amount Bitcoins or X tons of Gold and both require that large amounts of energy be spent to bring these mediums of exchange to market.

-Bitcoin or Gold, carry zero sovereign liability.

-While the US$ has the sovereign liability of it’s government, it enjoys status as the worlds reserve currency in which to absorb the Gov’s inflationary practices. Garth will say the US$ is backed by the power to tax its citizenry, but it’s really because it spends 3/4 of a Trillion annually on its military complex to maintain the current system, status quo.

The US$ supply is also infinite, but with almost zero energy required to produce. Although I guess one could view the US Military Machine’s cost as the: “input cost to manufacture” the US$ ?

#87 crowdedelevatorfartz on 05.27.21 at 10:52 am

@#85 Ponzies Pacer
“Ugliest car ever build.”
+++

The Model T was the first mass produced car . It wasnt about “looks” so much as a vehicle that could drive on the muddy horsecart paths known as roads back in the 1920’s

As for “Ugliest car ever built”….

The AMC Pacer….by a mile.

https://en.wikipedia.org/wiki/AMC_Pacer#:~:text=The%20AMC%20Pacer%20is%20a,box%20designs%20of%20the%20era.

The advertising was equally sad.
“Its so wide…….You can build a 6 foot sub sandwich in the back seat!”……….

#88 Faron on 05.27.21 at 10:55 am

#78 crowdedelevatorfartz on 05.27.21 at 8:35 am

@#72 R
@Sail Away
@Kate

++++

Lots of Elon Cyber fans. Amusing

It’s almost cute how blindly adoring they are. I especially like how mastor investor Sail Away still doesn’t understand how the TSLA stock price got so high; how it’s similar to GME, AMC and a bunch of other meme names NTM crypto; how he recites Munger or Buffet yet can’t see the problems with TSLA’s profitability and growth — ya know, basic valuation.

And R: lightning is at 70,000 pre-orders in a couple weeks and I’ll bet Ford realizes a vastly greater percentage of sales than Tesla will from the internet droolers who signed on for the stonkerdonk so they could tweet about it. The PRESIDENT OF THE USA ripped around in Ford’s truck. Do you have the slightest clue what that signals about policy?

#89 crowdedelevatorfartz on 05.27.21 at 11:05 am

@#82 R
“To transition the world away from fossil fuels and to replace them with renewable energy, the economy needs a robust renewable commercial response.”
+++

ALL the worlds legacy automakers are leviathans that need to be kicked every once in a while to re-tool their way of thinking.

Tesla is the kick in the rump.

Let’s see how profitable it is when Ford, GM, Toyota, Europe, China, etc etc etc start pumping out small, cheap, reliable electric commuter vehicles and gas stations go the way of the Dodo.

Elon may have started the electrical car love affair in mass production….but he certainly wont be the only company to mass produce.
His foray into giga factories producing just batteries seems to be a wise move.
Perhaps when Ford, GM etc surpass him in electric vehicle sales he can flog cheap batteries to them.

#90 Sail Away on 05.27.21 at 11:07 am

#85 Doug in London on 05.27.21 at 10:37 am

Stocks going up, that should be a boost to my portfolio of stocks and ETFs I scooped up 14 months ago when they were on sale.

———

Old news, Doug. Past laurels. Gotta keep playing the game. As follows:

NTR.TO +36% since 28 Jan 2021
BAC +55% since 17 Nov 2020
FFH.TO +16% since 26 Jan 2021
SAN +17% since 27 Apr 2021
TRP +19% since 4 Jan 2021

Plus succulent divs.

If you research, you’ll see those dates all coincide with depressed share price for non-fundamental reasons. January specifically tax-loss selling depression, the others just good opportunity.

#91 whiterice197 on 05.27.21 at 11:15 am

#67 Kate on 05.26.21 at 10:36 pm
#86 Blacksheep on 05.27.21 at 10:43 am

Kate, Garth has written previous blogs where he explains his stance on both crypto and tesla. Here’s a quote from his Jan 28, 2019 blog after bitcoin crashed from 17k to 5k:

“The tech bubble wasn’t about the future of the Internet (that was obvious) but the speculative over-valuation of profitless tech companies by naïve investors. Similarly the Bitcoin bust doesn’t negate blockchain technology or the digitization of money. But it’s wiped the floor with fools who thought crypto currencies created out of nothing, backed by nothing and regulated by nobody were worth billions.

Bitcoin went from $5,000 to over $17,000 in a few weeks because of insatiable plastic-fueled demand from uncooked investors who bought into an implausible story. They actually believed money could be manufactured privately, be free of central bank control, independent from government, untaxed, devoid of interest and yet be a medium of exchange. It was a scam. As usual, a small number of people got filthy rich. Millions of others, most of whom bought Bitcoin on Visa or MasterCard, have been wiped out – and are paying 19% interest on the losses.”

I think there is room for debate in terms of thinking of bitcoin as digital gold, as it has achieved network effects and I think will only continue to gain further acceptance from institutions/pensions. I think Garth is giving great advice to avoid the speculation aspect in crypto, but aside from bitcoin, ethereum currently has over 5.3 billion, or 3 million eth that is locked up. These stakers and validators are currently earning 5-7% yearly on this, which I would consider to be kind of similar to a dividend. I do consider this to be “backing” the network and it is the primary reason the eth network is/will be secure. Bitcoin is also backed by a proof of work mechanism.

What I don’t think he’s commented yet is decentralized finance using blockchain technology/smart contracts. Garth advocates low cost ETFs. I think of eth as kind of an etf in that it covers or has exposure to most of Defi, and there is also an index called DPI that tracks the largest DeFi apps.

#92 Sail Away on 05.27.21 at 11:18 am

#88 Faron on 05.27.21 at 10:55 am

I especially like how mastor investor Sail Away still doesn’t understand how the TSLA stock price got so high; how it’s similar to GME, AMC and a bunch of other meme names NTM crypto; how he recites Munger or Buffet yet can’t see the problems with TSLA’s profitability and growth — ya know, basic valuation.

———–

Advanced knowledge and comprehension sufficiently beyond the onlooker’s reach is indistinguishable from magic.

#93 Faron on 05.27.21 at 11:23 am

#87 crowdedelevatorfartz on 05.27.21 at 10:52 am
@#85 Ponzies Pacer

Ha! The pacer. My mom’s creepy boyfriend down in Desert Hot Springs drove a pacer well into the 1990s.

I would guess the designers of the Pacer were thinking of other back seat activities than sub making. Little did they know how low the odds of netting a partner would be when driving a pacer.

But, if you had a running Pacer today you could sell it to hipsters for a major premium. NormCore.

#94 Catalyst on 05.27.21 at 12:00 pm

I haven’t driven a tsla so I can’t comment on their technology but anyone who has owned a ford and had to struggle through their disastrous technology platform would never buy an electric ford. Disaster waiting to happen!

#95 crowdedelevatorfartz on 05.27.21 at 12:34 pm

@#94 Catalytic Converter
“anyone who has owned a ford and had to struggle through their disastrous technology platform would never buy an electric ford. Disaster waiting to happen!”

+++

True for the “first year” of any newly developed vehicle.
I wouldnt touch the 2021 Lightening.
But on that note…
Lets see what kind of bugs the Cyberpunk truck has.

#96 Wrk.dover on 05.27.21 at 12:58 pm

Ugliest build ever went to Pontiac Aztec, which when parked beside the average generic 2021 SUV, now looks gorgeous!

#97 Damifino on 05.27.21 at 12:58 pm

#82 R on

To transition the world away from fossil fuels and to replace them with renewable energy, the economy needs a robust renewable commercial response.
——————————–

How does building an electric pickup truck have the slightest relevance to transitioning from fossil fuels?

It will take gigawatts of industrial heat to build them and gigawatts more to power them. Almost all of that will be fed into the grid via the burning of hydrocarbons, not from wind turbines and/or solar panels. The Chinese get this concept. Why doesn’t America? Or even Canada.

“To transition the world away from fossil fuels and to replace them with renewable energy, the economy needs to…” shoot itself in the foot.

I believe we will manage exactly that. And that’s criminal, especially in Canada, a country gifted with bountiful energy resources envied by the entire world.

It lies in the platform of all our political parties to squander Canada’s potential while sacrificing energy independence. Every political road now leads backward.

#98 Very Daper Pathogen on 05.27.21 at 2:35 pm

It’s good that the banks are profitable. I want them to be, we all should. Still when is it enough? Every bank is raising fees while having you do more of what they use to do yourself despite phenomenal profits every quater.

#99 Hamish42 on 05.27.21 at 5:11 pm

It is amazing that a business with so little innovation as Canadian banking does so well.
When oh when will competition arrive???

#100 Doug in London on 05.27.21 at 10:55 pm

@ Sail Away, post #90:
After taking some profits to pay off any margin debt from the March 2020 buying binge, and taking a few more profits to get a cash cushion, my idea of playing the game is bore you to tears good old fashioned buy and hold. With the warmer weather here I prefer to be outside more rather than staring at a computer screen. I will none the less keep an eye on the markets, it’s a given something will go on sale sooner or later. Again I’m reminded of a sign I saw on a tire sales and repair shop in Timmins that said: Patience is no longer just a virtue, it’s a bloody necessity.

#101 Doug in London on 05.28.21 at 11:13 am

@Damifino, post #97:
Getting away from fossil fuels will require a lot of investment in nuclear power, whether we like it or not. That’s why I’m holding on to my shares in CCO, U, and URA-NY. It’s also worth noting that Canada has plentiful reserves of uranium. Now that’s energy independence.

#102 Sail Away on 05.28.21 at 11:15 am

#100 Doug in London on 05.27.21 at 10:55 pm

Re: investing

Yep, I think we have very similar styles: buy the discount. Just messing with you. ;-)