It’s time

.
DOUG  By Guest Blogger Doug Rowat
.

On average, major US corporations raise their dividends by about 6% annually.

This is significant for several reasons. First, share prices tend to track dividends, so dividend increases, over the long haul, usually bring price appreciation. Second, income investors naturally want their dividend growth to exceed inflation. And if the growth can exceed the inflation rate by many multiples, so much the better. In fact, dividend growth is one of the many reasons why equities outperform bonds over the long term—generally speaking, bond payouts (coupons) never increase.

In Canada, our major corporations are dominated by financials. In particular, the Big Five banks, which occupy five of the top-10 largest holdings in the S&P/TSX Composite and have a mean market cap of more than $105 billion. And Canadian banks have kept pace with US corporations in terms of dividend increases, also raising them by about 6% annually.

However, over the past year and a half this certainly hasn’t been the case as Canadian bank dividends have remained completely frozen. But this could shortly change—and in a big way.

First, why has there been a moratorium on Canadian bank dividend increases? As you might expect, it stems from the economic uncertainty created by Covid. At the outset of the pandemic, the Office of the Superintendent of Financial Institutions (OSFI), the Canadian banking regulator, barred dividend increases and common share buybacks in order to ensure that the banks remained well capitalized and had ample liquidity throughout the crisis.

And with collectively hundreds of billions in deposits, trillions in loans outstanding ($1.3 trillion in residential mortgages alone) and more than 300,000 employees nationwide, it’s no exaggeration to say that the stability of the banking system is the most critical factor in weathering an economic crisis.

However, because of the rapid equity market and economic recovery that we’ve witnessed since the outbreak began, the Covid crisis took only a brief toll on bank earnings and balance sheets. For many quarters now, there has been a spectacular rise in bank profits and, equally important, a slashing of loan-loss provisions. In fact, the Big Five banks’ Tier 1 capital ratios, which are a measure of the banks’ core capital (e.g., retained earnings) relative to some of its riskier assets (e.g., mortgages), are averaging 12.9%, well above the 9% minimum currently mandated by regulators.

Many analysts, including myself, believe that it’s simply a matter of time before OSFI green-lights the banks to freely deploy their capital again. I thought OSFI might have given the thumbs-up before the banks reported fiscal Q3 results a few weeks ago, but unfortunately this didn’t happen. It’s now looking like the announcement will come in the fall. And given, as I mentioned, that banks historically raise dividends at a 6% annual pace and we’re approaching 20 months now since the last bank dividend hikes, it’s likely that the upcoming dividend increases will be double-digit, perhaps even as high as 15% for some banks. That’s a lot more cash that will soon to be making its way into the hands of bank investors.

It’s been a good year for Canadian banks, and I understand the argument that these potential dividend increases may already be priced in, but bank valuations aren’t stretched, indicating that investors aren’t factoring in excessive good news. And, in my experience, catalysts are rarely fully priced in until they’re actually announced. Besides, there remains that strong correlation between bank dividends and bank share prices:

Canadian bank dividends are share prices are strongly correlated.

Source: Turner Investments, FactSet (Click to enlarge)

But regardless of whether higher dividends act as a price catalyst, it certainly hasn’t been a bad thing to have held Canadian banks in your portfolio over the long term (via a diversified ETF, of course). The performance history supports this:

Canadian banks have averaged double-digit annual returns for the past decade

Source: Turner Investments, FactSet

OSFI’s a conservative, slow-moving regulatory behemoth. All the proof you need of that is to simply pronounce its full name a few times. It’s a mouthful. And if you still don’t believe it’s conservative and slow moving, be reminded that it’s also a federal government institution.

However, as slow moving as it may be, I believe OSFI’s now very close to removing those dividend restrictions, and when it does, look out: a monster dividend wave is likely coming.

Grab your boards.

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

 

128 comments ↓

#1 crowdedelevatorfartz on 09.04.21 at 9:24 am

Dude!
Grab some of those tasty dividends….

#2 RowatNation aka Prince Polo on 09.04.21 at 9:27 am

Hang ten, dude! Thaw out those divvy increases, OSFI.

Happy Labour Day to all blog doggies, the TI brain trust, and Garth. Grab a brew & fire up da BBQ.

#3 crowdedelevatorfartz on 09.04.21 at 9:31 am

@#93 Ponzie’s political paranoia

“You’re not voting strategically, your vote is a hate/spite vote.
Very selfish.”

+++++

Pffft.
I’m just hopping on the “anyone but Trudeau” train.

Vote accordingly

#4 crowdedelevatorfartz on 09.04.21 at 9:41 am

@#91 fishman

100% correct.
In one paragraph you have explained exactly what has happen to the skilled trades in BC, and on a wider scale, the rest of Canada.

The politicians promise, “One million new homes in Canada in 3 years”….

Total bs unless the houses are build in factories in China, shipped over, and assembled.

#5 Bezengy on 09.04.21 at 9:43 am

A fifteen percent divvy increase would be nice from the banks, but I’ll still need another forty percent increase just to pay my hydro bill. I know, two percent inflation. Got it.

https://www.google.ca/amp/s/globalnews.ca/news/7629345/hydro-one-phased-in-approach-removal-seasonal-ratepayer-class/amp/

“Fifty-five per cent of our seasonal customers will see an increase on their bill and we’re really encouraging them to get involved. We know the typical seasonal customer will see an increase of 54 per cent as a result of this decision by the OEB, which is $650 a year.”

——

Happy labour day. Should have gotten a job with Hydro One.

#6 Dharma Bum on 09.04.21 at 9:44 am

Well, it’s ABOUT TIME!

Sheesh!

Add don’t forget – after T2 sticks it to the banks with his virtue signalling 3% tax increase, the banks will up their fees to consumers by double that, thereby making even more money, resulting in higher, sweet, sweet divvies.

Bring it on!

#7 Jane Finch on 09.04.21 at 9:47 am

Doug I don’t believe OSFI has anything to do with CDN Banks not marching lockstep with their US Counterparts in raising dividends and initiating ongoing buy backs. Sadly I think the problem is hurdle has a name. Justin Trudeau. I believe Trudeau was planning to bash the banks for the sake of his politics, and he couldn’t be seen the hypocrite by allowing banks and insurance companies to function and raise dividends etc. Those banks comprising the XLF will all adjust post election. No doubt. My position, but the banks while languishing during this election cycle.

#8 Bank Stock Guy on 09.04.21 at 10:02 am

The only Canadian stocks I will hold are the big 5, preferably the biggest of the five.

Royal Bank comes the closest to being a no-brainer investment of any stock in North America.

The close to 6% yield in March 202 was the deal of a (post ZIRP) lifetime, and even today’s yield looks pretty good.

At anything close to 4% yield I will buy with both hands.

JT’s recent bank tax grab is a great opportunity, but I’m only buying with one hand so far.

#9 Joe on 09.04.21 at 10:11 am

What is the annualized rate of banks since inception? Using the past decade as a benchmark isn’t accurate given the massive government intervention.

#10 Worried about Trudeau on 09.04.21 at 10:20 am

What about Trudeau’s plan of massively taxing the banks. Won’t that have a large effect on the stock price if the tax happens?

#11 Get Healthy! on 09.04.21 at 10:29 am

#143 Calgary Rip Off

At 49 Im stronger at 208 lbs than I was at 250 at age 19. Balding, yes. That is a consequence of DHT. DHT is androgenic and increases strength. Too bad its not anabolic. Last wednesdays workout consisted of a warmup of 335×4, 405×5, 475×3, 495×2, 505×2 deadlifts. Rows: 335×5, 345×5, 345×6.

Today is rep day. Probably do 385×15 reps on squats, low bar and bench 225×14 reps.

No drugs. Just lots of vitamin D3.

Men get middle aged due to emotional demands of women and maladaptive coping patterns by drinking alcohol which is estrogenic. I save my money and dont drink alcohol.

I remain vaccinated and non ivermectin promoting.

Currently around $300k on the rip off mortgage in Calgary. Housing remains a rip off. Everywhere for rentals and mortgages. Fortunately in Calgary there is no flooding or tornados. For now.

I am not voting for the arrogant Trudeau. And not voting for Jason Kenney’s party.

—————-

This is what I’m talking about CRO!

People sitting on their butts. Not exercising. Not eating well. Drinking. (by the way, didn’t know about the estrogen thing!) Smoking. Weed. Medicating instead of addressing causes.

I saw a study that said 3% of US population if on immunosuppressants! That’s not even factoring all those drugs that list immunosuppression and reduction in ability to fight viral infections as side effects.

48% of US population have 2 of the 5 key contributors to Covid hospitalization! Forty Eight Percent! CDC reported

78% of ICU patients are obese. My goodness.

What is comes down to is humanity’s health overall is not improving. It is being hidden by overall population growth data perhaps. But laziness and vices are taking our health away. Dummies celebrating legalized weed.

Then we’re surprised when Mother Nature comes by to take inventory and check up on how we’re taking care of ourselves.

#12 the Jaguar on 09.04.21 at 10:30 am

“OSFI’s a conservative, slow-moving regulatory behemoth.”

&….”look out: a monster dividend wave is likely coming.”—Doug ++++

——OSFI is a chicken hawk. ( a person who speaks out in support of war yet has avoided active military service.). They talk big and like to roll around on their Basel 123 business cards, but they are essentially a bunch of layabouts. It might appear that the tail wags the dog, but the Ancient Warriors wrote ‘The Art of War’. Pretty obvious who is really running the show.

Canadians love to bash the Big Five, but secretly they admire them. They employ hundreds of thousands, help people in ways the average person couldn’t even imagine, generally keep a low profile and their powder dry. What’s not to admire? Tsunami Dividend cometh.

#13 Inequity on 09.04.21 at 10:32 am

Thank you for the post Doug! I’ve wondered how the banks set their dividends.

Does the same apply to preferred? For example CPD which holds preferred shares from the big five..

#14 the Jaguar on 09.04.21 at 10:38 am

Snippet from today’s NP. Maybe this is where Kenney got the idea for the $100.00 bribe:

“$300.00
The monthly allowance San Francisco pays troublemakers to not shoot anyone. The Dream Keeper Fellowship will see 10 participants deemed to be at high risk of committing or being the victim of violent crime given $300 per month in the form of gift cards to act as public safety ambassadors and stay out of trouble. A further $200 is on offer if participants meet certain benchmarks such as attending parole hearings and applying for jobs.”

Mercy.
Sorry, Doug. Back to the topic of the virtuous Ancient Warriors….

#15 Linda on 09.04.21 at 10:51 am

Doug, given that the Liberals are promising to impose a tax on bank profits as part of their election platform do you think it possible that OSFI is holding off in order to ensure that the tax haul will be as high as possible? Cause = effect & all that. Election day is 16 days from now & advance voting is a week away. I can just see that government hand reaching out for that golden egg…..

#16 Yukon Elvis on 09.04.21 at 10:58 am

Canadian banks have averaged double-digit annual returns for the past decade.
+++++++++++++++++++
And if you backed up the truck and bought the dips you made out like a bandit.

#17 Doug Rowat on 09.04.21 at 11:05 am

#9 Joe on 09.04.21 at 10:11 am
What is the annualized rate of banks since inception? Using the past decade as a benchmark isn’t accurate given the massive government intervention.

—-

Banks did just as well the previous decade.

—Doug

#18 Great stocks on 09.04.21 at 11:06 am

#9 Joe

I don’t know the ROR off the top of my head, but about 20 years ago when I looked at it they were among the best investments in NA of all time.

No doubt they have moderated somewhat in comparison to some tech stocks, but if you think the ROR is not terrific, I’d like to know what volatility adjusted stocks you think have been better foundational holdings for average investors in the last 50 years.

#19 KLNR on 09.04.21 at 11:29 am

the dumb just keep getting dumber.

https://www.theguardian.com/world/2021/sep/04/oklahoma-doctor-ivermectin-covid-coronavirus

#20 Barb on 09.04.21 at 11:46 am

“At the outset of the pandemic, the Office of the Superintendent of Financial Institutions (OSFI), the Canadian banking regulator, barred dividend increases and common share buybacks in order to ensure that the banks remained well capitalized and had ample liquidity throughout the crisis.”
————————–

The IMF recommended that banks stop paying dividends (entirely) a couple of years ago. I can’t find the link today.

#21 jump the shark on 09.04.21 at 11:53 am

#39 My Body My Choice on 09.03.21 at 4:58 pm

In 2015 Mr. Drama Teacher was hired to act in a new TV series dramedy: PM of Canada.

In Season 1, he mixed and matched socks, dressed up in various costumes and attended numerous Pride Parades ……….

Tune in on Sept. 20, 2021 for the final episode of Season 6.

____________________________________________

jump the shark

(of a television series or movie) reach a point at which far-fetched events are included merely for the sake of novelty, indicative of a decline in quality.

#22 Ponzius Pilatus on 09.04.21 at 11:55 am

As 2008 has proven, Canadian banks are safer than the Yankee ones.
In great part thanks to OSFI.
Better prudent, slow and safe.

#23 Yukon Elvis on 09.04.21 at 12:21 pm

#9 Joe on 09.04.21 at 10:11 am
What is the annualized rate of banks since inception? Using the past decade as a benchmark isn’t accurate given the massive government intervention.
++++++++++++++++
Royal Bank had been paying shareholders a yearly dividend since 1870.

#24 SoggyShorts on 09.04.21 at 12:43 pm

#9 Joe on 09.04.21 at 10:11 am
What is the annualized rate of banks since inception? Using the past decade as a benchmark isn’t accurate given the massive government intervention.
*******************
I only checked RY and TD which go back to ’95 and they each started at $6 now 100 and 60 so if you included divvies I think they’d hold up quite well vs the S&P

#25 protea on 09.04.21 at 1:12 pm

Thanks Doug for your excellent informative information.
Have a question ? just spent last week up around Lund BC

Speaking with the locals it seems like the underground economy is alive and well in the rural areas. With what to expect in the future under the current government ie. enhanced taxation wont this encourage more self employed folks to embrace the underground economy. Would love your take on this.

#26 TurnerNation on 09.04.21 at 1:25 pm

For the Schlock Pickers and #Yieldhounds my likes are
Green and Green (fat payouts)

– RNW TRANSALTA RENEWABLES INC
– INE INNERGEX RENEWABLE ENERGY INC.

————————–

Life in Kanada. The Snowbirds are over my city.
Pilots displaying their skill using 60 year old technology!
Come by the Canadian Pavillion and I’ll give you a demo of the latest wonder: the TELEX Machine.

“The show team flies 11 CT-114 Tutors:
First flight 13 January 1960”



— Economic Shutdowns and the new Digital Lockdowns.
The “measures” are permanent and designed to re-make the world.
PS. how that Hospital Capacity Coming along?

.Alberta’s latest COVID-19 measures cause frustration for doctors, restaurant owners (globalnews.ca)


– Children in particular are being set never to again know normalcy. Submitting to the New System must be ingraned into them. Those #s on the telescreens ruling our lives…Just TWO more years. Get used to it.

.Texas: At least 45 districts shut down in-person classes due to COVID-19 cases, affecting more than 40,000 students(texastribune.org)

#27 cuke and tomato picker on 09.04.21 at 1:27 pm

The Conservative Government officially voted to not
accept climate change on March 20, 2021.

#28 Shawn Allen on 09.04.21 at 1:28 pm

Bank Returns since inception?

#9 Joe on 09.04.21 at 10:11 am
What is the annualized rate of banks since inception? Using the past decade as a benchmark isn’t accurate given the massive government intervention.

**********************************
If you are looking into the inception of the Royal Bank it might surprise a lot of people to know that it was first chartered as the Merchants Bank of Halifax in 1869.

It started as the un chartered copartnership Merchants Bank in Halifax opened May 2,1864, and became a chartered joint stock bank as The Merchants Bank of Halifax in 1869. It changed name to The Royal Bank of Canada in 1901. It dropped the “the” in 1990.

Too bad head office vacated Halifax an extremely long time ago…

I had not looked into when it had its IPO. I’d gess its traded for probably 100 years.

As far as the past decade. Rest assured that the Canadian banks have been great investments for decades.

Hmm what goes well with the sour grapes of having missed out on bank stocks as an investment?

#29 Shawn Allen on 09.04.21 at 1:32 pm

Made out like a bandit

#16 Yukon Elvis on 09.04.21 at 10:58 am
Canadian banks have averaged double-digit annual returns for the past decade.
+++++++++++++++++++
And if you backed up the truck and bought the dips you made out like a bandit.

*********************
Maybe that saying should be changed to “made out like a banker” – a lot more lucrative and less risky.

#30 Sydneysider on 09.04.21 at 1:35 pm

Some banks require minimum balances for certain accounts in order to avoid transaction fees. I have an old account with a small balance where that requirement was recently raised to $5000. The same amount invested into stock of the bank would pay >$100 pa after tax in dividends. The breakeven point is 4-5 transactions per month, which is more than I need. Since I do have stock in that bank, I see this as a fair situation.

#31 Dolce Vita on 09.04.21 at 1:39 pm

Rock solid recommendations. Good combo of dividends and growth.

Being a Paleo give me ETNs. Time is short on the planet thus give me cash flow, not so much growth.

Just sold off a bunch of stocks with yields of around 3-6% to pump more cash into an ETN that I own which gives me a 15.8% yield paid monthly (was at 17%, then its price went up recently).

Higher risk I will admit but worth it cash flow wise as a retiree.

For the faint of heart Paleo’s w.r.t. lower risk ETNs there is QYLD with an 11.8% yield or JEPI or NUSI with yields at about 7.5-8%. For example with QYLD if you want USD $4,000/month:

= $4,000/$0.1879 dividend per share
= 21,288 shares
= 21,288 x $23.05/share
= $490,688 invested

So for just under USD $0.5M you get USD $4,000/mo in dividends (CDN $626.3K/$5010/month).

And the kids want to shove a HALF MILLION into a home downpayment and their idiot parents give them that cash whilst pulling out a HELOC for the cash.

Boggles my mind every time Garth talks about that.

—————–

Doug, when young your strategy great. When you get older you are not so much amused by the % growth of a portfolio than you are as about the CASH that it pays you. Cash I can spend. %’s not so much.

Actually, my above Paleo strategy not so bad for kids either. And kids while young reinvest some or all of the dividends for the snowball effect.

#32 Dolce Vita on 09.04.21 at 2:10 pm

Loving the polls as of late, this one so far my favorite – near spewed my morning Caffè Latte* on my 66″ LG-GI EVO OLED I use as a PC Monitor (Paleo whoose eyes not what the were):

Preferred Prime Minister:

O’Toole: 31% (+2)
Trudeau: 27% (-2)
Singh: 20% (+1)
Bernier: 4% (-)
Blanchet: 3% (-)
Paul: 2% (-)

Nanos Research / September 2, 2021 / n=1200 / MOE 2.8% / Telephone

(% Change With September 1)

https://twitter.com/CanadianPolling/status/1433815245097668637

——————-

It will be a Con MAJORITY.

PS:

TikTok not working for TikTok.

*A real Caffè Latte made in Italia by me with a Saeco macchina da caffè automatica using Lavazza Crema e Gusto Classico coffee beans and not that SLUDGE FROM STARBUCKS you all call espresso.

And NO YVR, all your home brewed beans suck. I have tried them all when living in YVR, all of them – all show, no go, persnickety Mangia Cake do not know dung from clay vendors with a good story. Too oily. Gum up the machine works. And, ridiculously expensive. Lavazza Crema e Gusto 1 kg < €10 at my grocery store. If you want your eyelids to pop open in the morning by themselves try the above in the "Forte" version, same price. You will thank me.

#33 NoName on 09.04.21 at 2:12 pm

Someone yesterday mentioned trades and why they are peest, id just like to add price of decent tools to the list. All, majority of my tools are made in Germany or usa, but there are few pices that came from italy and cheque republic. Lots of german tool stuff is sourced out to eastern europe. If you come acros Italia USAG mechanic tools pick them up they will outlast you.

Can you believe this, cheapest GOOD players and SMAL screwdriver 50cad. When tool store dude told me i went all dizzy… Good thing that I am not haircutter, decent ceesors 300+, drop them once and they are done.

And i hear people complaining about staplers all the time…
https://youtu.be/Vd4fj9Efl4s

Tools in question.
Chanelock side cutters (lond strai one)
Wera 4×2.5mm flat screwdriver

#34 Do we have all the facts on 09.04.21 at 2:26 pm

Let us assume that 50% of the net profits of the major banks get distributed as dividends and 50% of net profits are available to invest. Wouldn’t it make sense for the Government of Canada to develop new incentives to encourage Canadian investors and Canadian banks to increase their investment in the Canadian economy.

Canadian citizens and corporations hold hundreds of billions of dollars in investment capital that could be directed towards expansion of our economy. Rather than threatening to reduce the current capital gains exemption I would prefer to encourage much needed investment in innovation, research, development, market expansion and job creation.

It seems counter productive to view the income earned by successful companies and individuals solely as a source of tax revenue. Our economy desperately needs additional investment capital to compete in the global economy.

Residential mortgages have had their run and I would prefer Canadian banks to shift their investment focus towards improving the future for all Canadians.

#35 Victor V on 09.04.21 at 2:27 pm

ICYMI: Liberal candidate for Vancouver-Granville is asked about how much he’s profited off home sales in Vancouver, does not give a straight answer.

https://twitter.com/benrabidoux/status/1434215760788852740?s=21

#36 Trudeau's/Liberals Piggy Bank on 09.04.21 at 2:36 pm

Trudeau, Freeland will nationalize, socialize all the major banks, insurance companies so say good bye to shares, dividends soon.

#37 Ponzius Pilatus on 09.04.21 at 3:00 pm

#7 Jane Finch on 09.04.21 at 9:47 am
Doug I don’t believe OSFI has anything to do with CDN Banks not marching lockstep with their US Counterparts in raising dividends and initiating ongoing buy backs. Sadly I think the problem is hurdle has a name. Justin Trudeau. I believe Trudeau was planning to bash the banks for the sake of his politics.
———
You must have an easy life.
Husbands cheats on you: Blame JT.
Car breaks down: Blame JT.
It’s raining: Blame JT.
Get the drift?
Follow Elvis’s and Jag’s advice:
Exercise some “personal responsibility”.
I have decided not to support JT this election, because there’s little about climate change and public transport on his platform.
These issues are dear to my heart.
But constant complainers like you, and others on this blog, just yank my garters the wrong way.

#38 Doug Rowat on 09.04.21 at 3:02 pm

#13 Inequity on 09.04.21 at 10:32 am
Thank you for the post Doug! I’ve wondered how the banks set their dividends.

Does the same apply to preferred? For example CPD which holds preferred shares from the big five..

—-

Preferred dividends reflect balance sheet strength but also prevailing interest rates. Unlike common share dividends, variability of interest rates is often the biggest factor in whether or not your preferred dividend will be raised (or reduced).

—Doug

#39 Faron on 09.04.21 at 3:17 pm

I apologize in advance for the epic tome Doug!

#113 millmech on 09.04.21 at 12:26 am
#59 Faron

How much money do you have at play and also with all these market insights, Quants, Gamma Squeezes etc that you have put forth what is your YTD return, is it well above average with access to this information. I have posted positions on here and would not mind finding out which companies you have bought, also you spoke of meme stocks, which ones and did you run options(strategies) and were they successful or not.

My overall thesis is one of extreme risk aversion combined with a belief that bonds don’t offer much in the way of a hedge should things go south. We saw this earlier in the year when the market had some whoopsies while bonds were also sold leading to very bad performance from B+D strategies. The increased yield did nothing to offset the fairly large capital losses. Assuming (hoping) that we are at a secular low in interest rates, long bonds stand to lose value substantially. Because of that, other assets that are negatively or uncorrelated with equity indexes are needed. I also believe/understand that equities are less and less tied to value and fundamentals and more and more tied to options flows. So, I have a combination of robo equities, long equities and active hedging.

One account is a Wealthsimple Invest bot, one is self managed long using free-to-trade ETFs in QTrade and one is my hedge account win Wealthsimple Trade. Wealthsimple Invest does what it does and is where most of my savings go. I have that account set at 90% equities. Self-managed varies from 50% cash to 100% equities and is 19% YTD which is almost identical to the unhedged S&P. However, I was in cash for a lot of it, so perhaps a better sharpe ratio. In there, I mostly look at underperforming sectors via their RSI and Bollinger Bands and a sprinkling of macro trends while holding a core of XEQT. Currently holding banks despite recent strength assuming we are due for another round of rising rates, TSX index, HOG, XEQT and some XPF. Recently rotated into high dividend holdings as equities seem to be weakening and macro numbers + delta keep getting worse.

I use my various twitter follows to inform trades in the hedging account. I only listen to people who can convincingly describe a view on markets which is precisely why people like Sail Away are completely useless to me when they just blurt out names. In the early days I asked for his theses nicely and he blustered, so now I view his choices as worthless. When he leaked that his wife’s B+D performs as well as he does, that was all I needed to know. Confirmation bias is rampant in market analysts and I will only listen to people who are happy to laugh at their losses when they happen. Regardless, some of what I have been watching bubbled up into the larger financial media lately when it was noticed that equities have dipped during OpEx week for numerous weeks in a row. This is a dynamic that I’ve relayed here numerous times that I learned about from @jam_croissant on twitter. He’s a genius and all around nice guy.

I did very poorly in late March and early April with a long vol position. I was blindly convinced the market was in trouble but ignored the advice and signals of my various follows that any weakness was gone. And, overall, tend to lack conviction which leads to overtrading and missing opportunities. I’m extremely risk averse and am learning to relax. That said, the past couple of months have been extremely good especially the past month. I caught the mid-month weakness with a fairly large long vol position and closed it as soon as there was any strength. I’ve been watching DXY’s strength (US Dollar index) top out in its range and then went hard long and short various products that benefit or are hurt by a weaker dollar.

I don’t trade options and have only done a few meme trades and a few crypto trades. A couple went extremely well and others I got spooked and exited or was too late. I don’t like anything that has a potential for strong gamma squeezing because the squeeze can end as quickly as it started and lead to huge losses (risk averse). I’m fascinated by the dynamic and think the resulting price/time patterns could be learned from and repeated.

Finally, I’m currently on the fence as to whether I want to devote time to learning a data API and going hard on trying to find a trading edge using data analysis in Python. Like everyone, I think there is a lot to be gleaned from the market dynamics that arise from the massive amounts of options trading. But, that would be a second job. As it is I spend too much time watching the markets leaving me to work late hours and generally be more stressed than I should be.

Overall, I listen to and follow people who are eloquent and convincing. Many of those people happen to be funny and very kind/good citizens of the world. My follows are: @jam_croissant, @michigandolf, @tictoctick (total ahole and politically worse than some of the worst commenters here, but a savant with orderflow), @coloradotravis, @keubiko (for some really good long ideas, guy is a pro and very funny), @nope_its_lily and her NOPE via nopechart.com, @squeezemetrics and his daily calculation of DIX and GEX and when he tweets, it’s almost always bang on. @northmantrader for sheer Fed cynicism. A number of TSLAQ twitter peeps because I am very much looking forward to the day Elon Musk lands in jail even if it may never happen because “stock price bro”.

None of this is advice to anyone. My follows are as likely to be FURUs as anyone else on twitter.

How about you?

#40 Leichendiener on 09.04.21 at 3:41 pm

Surf’s up!

#41 tbone on 09.04.21 at 3:54 pm

I started collecting TD shares about 10 years ago while adding other bank shares and ENB along the way.
I now own all the banks and the dividends provide all the income i need . I felt no need to buy the ETF . I did have ZWB but sold it to buy CM last year with a 7 % dividend at 82 bucks a share.(and CM has gone up a little since then )

#42 I'm Alright Jack on 09.04.21 at 3:59 pm

If I were the banks I’d say fine – you tax us 3% more and we lay off 3% of our employees and close 3% more branches.

We’re just waiting to do this anyhow, so this is a good excuse – fill yer boots. Those ex-employees will be eternally grateful to the LPC I bet.

Simple, and something even T2 may be able to comprehend (despite his knowing nothing about budgets, monetary policy etc etc etc).

#43 ImGonnaBeSick on 09.04.21 at 4:00 pm

#27 cuke and tomato picker on 09.04.21 at 1:27 pm
The Conservative Government officially voted to not
accept climate change on March 20, 2021.

—-

In the future, make sure to wear a hat when you’re in the field… You’ve obviously baked your brain…

“We will fight climate change and protect the environment, but we won’t do it on the backs of hardworking Canadians,” said O’Toole.

https://www.conservative.ca/conservative-leader-erin-otoole-announces-climate-change-plan/

#44 JSS on 09.04.21 at 4:16 pm

Canadian banks and railroads…just rub tummy forever.

#45 JSS on 09.04.21 at 4:17 pm

Doug, do you think any of the Canadian banks will undergo stock split? thanks.

#46 Don Guillermo on 09.04.21 at 4:33 pm

#32 Dolce Vita on 09.04.21 at 2:10 pm
Loving the polls as of late, this one so far my favorite – near spewed my morning Caffè Latte* on my 66″ LG-GI EVO OLED I use as a PC Monitor (Paleo whoose eyes not what the were):

Preferred Prime Minister:

O’Toole: 31% (+2)
Trudeau: 27% (-2)
Singh: 20% (+1)
Bernier: 4% (-)
Blanchet: 3% (-)
Paul: 2% (-
**************************************
Interesting article regarding the polls.

https://www.straight.com/news/for-broadcasters-a-great-deal-is-riding-on-outcome-of-canadian-election

Small excerpt.
“The stakes in this election are extremely high for CBC, Bell, Corus Entertainment, Rogers, Québecor, Postmedia, Torstar, and other media companies.

That’s because the Conservatives’ election platform promises fairly major changes that will drive down CBC revenues. That offers opportunities for the private media companies to increase their market share of advertising. Let’s first look at the CBC’s budget … ”
__________________________________________

On a more interesting note. We’ve been running a Saeco machine for 17 years. Can’t live without it. We’re on our 2nd machine and will buy one for Mexico once we move out of our condo. Condo kitchen is a bit small but that’ll change in Dec.

#47 Dolce Vita on 09.04.21 at 4:36 pm

#39 Faron

You read sophisticated in investing, options interested so buy a Covered Call ETF.

They write call options on the stock they hold in the ETF and you get the profit from those call options they write/sell and without having to sweat it out yourself.

QYLD is just such an animal (Global X NASDAQ 100 Covered Call ETF).

A little more risky but you read as if you understand risk. Plus, bonus a high dividend yield of 11.8%.

Scroll to the bottom to view the primary stocks they hold in their ETF:

https://www.globalxetfs.com/funds/qyld/

Morning Star ☆☆☆☆ rated which from them is miraculous.

#48 Shawn Allen on 09.04.21 at 4:42 pm

Understanding Banks

#34 Do we have all the facts on 09.04.21 at 2:26 pm said:
“Let us assume that 50% of the net profits of the major banks get distributed as dividends and 50% of net profits are available to invest. Wouldn’t it make sense for the Government of Canada to develop new incentives to encourage Canadian investors and Canadian banks to increase their investment in the Canadian economy.”

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

Well, banks basically invest by loaning out money. Doubt we need more of that ether to individuals or corporations. There is room to tax banks higher.

He also said “Canadian citizens and corporations hold hundreds of billions of dollars in investment capital that could be directed towards expansion of our economy.:

**********************
What investment capital is that? If a corporation has extra cash it is typically in a bank deposit where it is funding loans. This notion of idle cash is false.
Watch “It’s a wonderful life” or look at the balance sheet of a plain lending bank like Canadian Western Bank.

Almost no one understands the nature of money. (Certainly not Trudeau and I think he admitted no interest in it the other week) I have been trying to understand for years and have but a glimmer of knowledge. Money passes through the economy. It does not go into the economy. Bank pretty much deposits stay in banks. Try to think of a scenario where a large corporation spends a million. It will just end up in other bank accounts. (I am thinking domestic spending – I am admittedly more hazy on what happens when money is spent in another country.)

#49 AIR SHOW on 09.04.21 at 4:44 pm

Just want for a nice swim in Lake Ontario.

Turns out the Air Show was on today and tomorrow.

F-35 did a demonstration over my head just as I was swimming.

WHAT A PLANE! I want one!

Considering how many billion we just spent as a country to have our economy shrink in Q2, seems like the F-35 purchase and a decade maintenance contract could have been squeezed in there in one of the daily give-a-ways.

At this point, considering the money supply multiplied 5x, let’s spend our “Canadian Tire” money on something cool…like some awesome F-35s.

Don’t mean to crap on the Snow Birds, but 9 of those planes aren’t nearly as entertaining as a single F-35. And when it comes to establishing authority, it’s not even a contest.

That’s just the truth.

#50 Faron on 09.04.21 at 4:48 pm

#118 Sail Away on 09.04.21 at 8:06 am

Thanks Clippy!

#51 Retired in Kelowna on 09.04.21 at 4:56 pm

Excellent explanation Doug. Thank you.

#52 Shawn Allen on 09.04.21 at 4:57 pm

Money Supply?

I downloaded the Money Supply figures from Bank of Canada. Specifically M2.

Since March 2020 the M2 Money supply has increased at double digits year over year and got as high as 19%. In June it was down to 12%. Normal growth is about 6 or 7%. This added money supply was basically entirely created by added loans. Government borrowing and private sector borrowing creates bank deposits — that is Money.

Last time we hit double digits was the 2009 financial crisis – little inflation followed. The time before that was ’88 to ’90. There was a recession back then.

From 1971 to 1982 the Canadian money supply year over year growth was constantly in double digits. Those were the big inflation years. Those were also the years the boomers were borrowing to buy houses and car. The money supply also rose rapidly in the 80’s double digits most years. You could almost say it was pretty much double digits all the way from 1971 to 1990 with a few exceptions in the 80’s

So what does it mean? The recent double digit money supply growth could lead to more sustained inflation if it continues. Or maybe it’s a one-time blip. Grocery prices go up 25% one-time and then go flattish again?

#53 Alex Très Bucks on 09.04.21 at 4:59 pm

Today’s final Jeopardy question is:

Alpha Beta
Pi Delta Pi
Omega Mu
Lambda Lambda Lambda

These are not Covid variants. These are fraternities from…

#54 Shawn Allen on 09.04.21 at 5:01 pm

Rub Tummy?

#44 JSS on 09.04.21 at 4:16 pm
Canadian banks and railroads…just rub tummy forever.

*****************************
I can attest JSS has been rubbing his tummy about dividends like this for probably ten years or more on this blog. He does not say much but he has been right.

#55 TurnerNation on 09.04.21 at 5:05 pm

— Like I said no matter who you vote for they are on-board with the Global Agenda.
The Old System was shut down that cold week in March 2020.

COV stands for…

.O’Toole promises to implement national proof of COVID-19 vaccination system(globalnews.ca)


— Normalcy…is gone.

.York Region residents who host gatherings, private parties will have keep contact lists(barrie.ctvnews.ca)

— Did you get that this global war – WW3 – is for our minds?

I sincerely hope that this is satire. But knowing Kanadians, it is more like in instruction manual.
These people would make fine guards in the internment sites? Their cruel attention to detail and procedure.

https://old.reddit.com/r/ontario/comments/phqt6p/covid_tension_at_home_looking_for_help_and/
Groceries – this is full day process, yesterday it took almost 6-7hrs. We order online and do the curbside pickup, that’s totally fine with me. I usually grab them and bring everything home in what we have designated as our dirty vehicle, which is used for appointments and going to stores, etc… Once I get home I have to take my clothes off in the garage, put into a bin and go inside and shower. My wife then takes the groceries and brings them into the garage, wearing a mask and then sanitizes and wipes down everything. No boxes come into the house everything gets dumped into large Rubbermaid bin – chips, granola bars, cookies, bread, tortillas, you name it. The veggies do not get sanitized but she puts them in bowls or on trays and then runs them all through the dishwasher (12min cycle

#56 crowdedelevatorfartz on 09.04.21 at 5:23 pm

@#53 Alex Quebec
Animal House

#57 Sail Away on 09.04.21 at 5:43 pm

#39 Faron on 09.04.21 at 3:17 pm

I only listen to people who can convincingly describe a view on markets which is precisely why people like Sail Away are completely useless to me when they just blurt out names.

———

Haha.

When a raccoon is raiding one’s koi pond regularly, the wise move is to train the existing raccoon through a series of unpleasant experiences to leave the koi alone, rather than trapping or removing it. This works because that raccoon owns the territory of your house and will both keep interlopers away and train its own offspring to avoid the koi.

Training may gain you several years of peaceful coexistence, although the training period itself can be trying. During this time, you and your tactics will occupy much of the raccoon’s mindspace.

#58 jess on 09.04.21 at 5:46 pm

anti vax grief profiteering?
https://www.nbcnews.com/tech/social-media/how-anti-vaxxers-target-grieving-moms-turn-them-crusaders-n1057566

#59 Do we have all the facts on 09.04.21 at 5:48 pm

The whole theory behind the creation of Chartered banks and passing the Bank Act was to establish institutions to support development of the Canadian economy.

When did that objective disappear.

#60 Ponzius Pilatus on 09.04.21 at 6:01 pm

#43
“We will fight climate change and protect the environment, but we won’t do it on the backs of hardworking Canadians,” said O’Toole.
————–
“Won’t do it on the backs of hardworking Canadians”
How often have we heard this.? What does that even mean?
On which backs is he going to fight on? Lazy Canadians?
Rich Canadians?
Another empty promise from another shallow politician.

#61 Quintilian on 09.04.21 at 6:02 pm

So, let me see if I understand you crusty, wrinkly, curmudgeons correctly.

To a great degree, this blog is constantly maligning and badgering the central bankers for their reckless, irresponsible, assuaging ill- conceived, limp wristed policy resulting in obvious economic distortions, often citing how “it won’t end well”.

As I understand it, CB’s use banks as an instrument to control money supply, creation, velocity, and its all-powerful gift to the banks to operate on fractional reserves; yet you don’t see how “it won’t end well” applies to the banksters?

Perplexed .

#62 Freedom First on 09.04.21 at 6:04 pm

#55 TurnerNation

TN- You are not alone.

Freedom First

#63 Yukon Elvis on 09.04.21 at 6:13 pm

#41 tbone on 09.04.21 at 3:54 pm
I started collecting TD shares about 10 years ago while adding other bank shares and ENB along the way.
I now own all the banks and the dividends provide all the income i need . I felt no need to buy the ETF . I did have ZWB but sold it to buy CM last year with a 7 % dividend at 82 bucks a share.(and CM has gone up a little since then )
+++++++++++++++++++
Quite similar here. Banks and ENB and TRP since ‘08/09. Also bought CM in the dip at mid $80 and again when it dropped to mid$70. It is $145 now. Also got TD at $60, all paying juicy 5-7% divs. Always buy big five banks during the dips. No brainer.

#64 Turner Nation's Distant Relative on 09.04.21 at 6:16 pm

Israel announcing 4th shots and more… Looks like shots forever:

Salman Zarka says COVID-19 is here to stay for and that next booster shot may be adjusted for variants: ‘This is our life from now on, in waves’

Israel’s national coronavirus czar on Saturday called for the country to begin making preparations to eventually administer fourth doses of the coronavirus vaccine.

“Given that that the virus is here and will continue to be here, we also need to prepare for a fourth injection,” Salman Zarka told Kan public radio.

He did not specify when fourth vaccine shots could eventually be administered.

https://www.timesofisrael.com/virus-czar-calls-to-begin-readying-for-eventual-4th-vaccine-dose/

Adjust your investment strategy accordingly.

#65 the Jaguar on 09.04.21 at 6:19 pm

Enough about the banks. The fate of the nation hangs by a thread. The english language debate is this coming thursday, and O’Toole needs to deliver the knockout punch. Something along the lines of ‘You had an option, sir’.

Jody Wilson Raybould’s book doesn’t premiere until September 15th, so a strategy is needed. Rope a dope won’t cut it. The key will be getting T2 to lose his composure. Find his hot button and press hard.

Oh crap. The Jaguar is going to have to get on a plane and fly east to play Angelo Dundee in O’Toole’s corner. He could do worse.

#66 S.Bby on 09.04.21 at 6:19 pm

Don’t forget the cash grab by the banks of massively increasing fees (TD I see you) and closing branches.

#67 Planetgoofy on 09.04.21 at 6:21 pm

Thanks Doug
I’m wait for a pull back preferably a wipe out to reload. No guarantees though just wishing.

And a survey kind a funny from Campbell. (a good opening to listen to on todays show)
If you don’t already know the answer your prolly voting for the wrong guy.
We know who the CCP has under their thumb and its a near and present danger to this countries future. YOU can bet on that.

https://mikesmoneytalks.ca/this-weeks-poll-question/

And Mr Biden….ohhhhhh what a winner. A monstrosity of a Bonner.
Leaders of these 2 great nations are completely at fault. Its self explanatory.

#68 Penny Henny on 09.04.21 at 6:22 pm

#55 Faron on 09.03.21 at 5:56 pm
#151 Yukon Elvis on 09.03.21 at 11:37 am

Consider the alternative. Kamala Harris as president? Who will she appoint as VP? Nancy Pelosi? Maxine Waters? Al Sharpton? AOC ?

So, you fear black people and women including the dreaded women of colour. Noted. Bernie Sanders would be okay I presume?
///////////

I said it once (or twice) and I’ll say it again. Faron (protector of all that is right (wrong?)) boy oh boy do you have issues.
You just don’t get it do you? You want to blame it on your alcoholic mom, whatever. Deal with your issues and grow up, or at least seek the help of a mental professional. You are a piece of work I tell ya.

#69 S.Bby on 09.04.21 at 6:32 pm

Jagmeet wants free dental care for everyone earning under $90k. In his world anyone earning over that is “ultra rich” and not deserving of any breaks.

#70 mike from mtl on 09.04.21 at 6:41 pm

#32 Dolce Vita on 09.04.21 at 2:10 pm

*A real Caffè Latte made in Italia by me with a Saeco macchina da caffè automatica using Lavazza Crema e Gusto Classico coffee beans and not that SLUDGE FROM STARBUCKS you all call espresso.
//////////////////////////////////////////////////////////

You’re joking right? You’ve just described one of the cheapest, pre-ground, mass market ‘coffee’ made on one of the lowest end machines. Espresso is quite a departure to overall clean simplicity of Italian cuisine – price and convenience is its origin hence the name. Last I tried a few spots in Rome were not good at all, face blast of murky earthy Robusta taste. I understand most Italians especially in the south expect that sort of flavour profile.

True single origin greens start at 20$/kg I tend to prefer not doing a blend but blending can compliment certain batches. Like bread, roasting yourself is the only way to have a fresh result that can’t really be replicated.

Been a few years since I’ve last visited Vancouver but there’s a few independent joints that take pride and serve an excellent cup. Though the big trend in 2010s was super light roast washed centrals which if not careful taste like concentrated lemon juice. Yeah that’s not everyone’s palate myself included.

Agreed Starbucks, Tims, Illy and the like serve brown dish water.

#71 Faron on 09.04.21 at 6:42 pm

#57 Sail Away on 09.04.21 at 5:43 pm
#39 Faron on 09.04.21 at 3:17 pm

LOL. I bet you have been dying to read my answer ro milmech. Be assured, your investing “insights” occupy about as much cognitive space as the creationist literature those nice Jehovah’s Witnesses bring to my door does. Amounts to mystified pity followed by wonder they have any followers at all. Then I realize everyone wants a guru.

No, the real mystery you bring to me is how someone seemingly intelligent can have zero self reflectivity and humility and by extension such a weak and fearful ego. Best I’ve come up with is YASSV.

I also wonder how anyone who is ~smart can have such a boner for Elon Musk. But I’ve come to assume you are trolling when you exclaim his greatness.

Maybe one day I’ll be surprised. Shrug. Doubt it.

#72 Reality is stark on 09.04.21 at 7:06 pm

Canadian banks are the ultimate socialist altruists.
When they lent to the Reichman’s to build Canary Wharf they never bothered to look at the financials.
If you had a commercial property loan with the bank they didn’t care that you had a solid long-standing relationship with them, they called your loan.
After they took their hit on O&Y they went after you with fees to steal the money back after their own negligence.
They are a nasty bunch.
Over a 40 year period there is no comparison, the consumer is much better off dealing with an American bank.
An oligopoly our government thrives on to your detriment is not something to be proud of. You are ignorant if you disparage American banks referencing the financial crisis. Over a 40 year period it was just a blip.
Canadian banks oligopoly profits ultimately restrict opportunity. They are not your friends.
The nice lady at the bank isn’t actually very nice. Nice does not mean good. If you read between the lines I don’t believe Garth holds them in high regard either.
Social justice warriors also appear to be nice as they disrupt the rule of law to further their political agenda.
They live alone in a 30th floor condo with a big public service pension. They really don’t care if your house gets broken into by someone who knows the punishment will be weak or non-existent.

#73 Ponzius Pilatus on 09.04.21 at 7:09 pm

One of the reasons why the Canadian Banks are so solid is that they are under fairly tight controls by both federal and provincial overseers.
I did a 7 year gig with a Charter A Bank in a senior roll in the finance division.
We were subject to 4 different levels of audits:
1. Internal audits done year round by bank auditors.
2. External audits by a major accounting firm. Usually twice a year.
3. Once a year audit by FICOM (FInancial Institutions Commission) – Provincially regulated
4. Once a year audit by OSFI (Office of the Superintendent of Financial Institutions) – Federally regulated
Of these audits, the OSFI audit was the toughest.
Their audits were conducted by highly qualified Accountants (mostly CAs at that time), very professional and thorough, for sure.
We used to say “OSFi’s mills grind slowly, but grind very fine”.
Once they left, we always had a big party, celebrating another successful audit.
Just thought I let you know, not all federal employees are “just mailing it in”

#74 When Will They Raise Rates? on 09.04.21 at 7:11 pm

#68 Penny Henny on 09.04.21 at 6:22 pm

#55 Faron on 09.03.21 at 5:56 pm
#151 Yukon Elvis on 09.03.21 at 11:37 am

Consider the alternative. Kamala Harris as president? Who will she appoint as VP? Nancy Pelosi? Maxine Waters? Al Sharpton? AOC ?

So, you fear black people and women including the dreaded women of colour. Noted. Bernie Sanders would be okay I presume?
///////////

I said it once (or twice) and I’ll say it again. Faron (protector of all that is right (wrong?)) boy oh boy do you have issues.
You just don’t get it do you? You want to blame it on your alcoholic mom, whatever. Deal with your issues and grow up, or at least seek the help of a mental professional. You are a piece of work I tell ya

————

Yup. Climate change zealots have a nasty habit of falsely accusing those with whom they disagree of being a racist, misogonist or worse. I’ve written them off as indoctrinated beyond help.

#75 Dolce Vita on 09.04.21 at 7:28 pm

#70 mike from mtl

Lavazza has a 70% market share across Italia.

Not for nothing.

I have the Saeco Incanto, not low end, € 669,99. I like the form factor. Here is a sort of replacement to it in Canada:

https://www.cookstore.ca/saeco-picobaristo-carafe-super-automatic-espresso-machine-hd8927-47.html

Come to Italia and learn even Montréalaise…remember French cuisine is from Italia. The Medici sisters taught you how to use a fork at dinner, a wine goblet and their Florentine Chefs taught you how to cook & Poutine that’s on you not us.

Illy is nutty tasting. Probably the best to me is Pellini.

Go here, use translate and learn from Italiani the error of your ways, Lavazza – click the reviews:

https://www.amazon.it/Lavazza-Caff%C3%A8-Grani-Macchina-Espresso/dp/B074JQKX2Q/ref=sr_1_20?crid=338Z8FDU4UOF5&dchild=1&keywords=chichi+di+cafe&qid=1630797491&sr=8-20

Pellini, click the reviews:

https://www.amazon.it/Pellini-Grani-Caffe-Espresso-Vivace/dp/B00FGK5FPY/ref=pd_bxgy_2/257-3380249-2488644?pd_rd_w=bHrSD&pf_rd_p=cfeaf550-9f5f-483e-bd28-a83e8ccd8083&pf_rd_r=WAR8Y73ZVSKVYYTYED55&pd_rd_r=4efdf983-8fa5-412f-b144-d6d4b56d8261&pd_rd_wg=lH9HK&pd_rd_i=B00FGK5FPY&th=1

———————

As for your YVR “brews”, they are hideous. They just are.

Curious, how do you make your espresso?

#76 Shawn Allen on 09.04.21 at 7:29 pm

How Banks Work

#61 Quintilian on 09.04.21 at 6:02 pm
So, let me see if I understand you crusty, wrinkly, curmudgeons correctly.

To a great degree, this blog is constantly maligning and badgering the central bankers for their reckless, irresponsible, assuaging ill- conceived, limp wristed policy resulting in obvious economic distortions, often citing how “it won’t end well”.

As I understand it, CB’s use banks as an instrument to control money supply, creation, velocity, and its all-powerful gift to the banks to operate on fractional reserves; yet you don’t see how “it won’t end well” applies to the banksters?

Perplexed .

**********************************
You are indeed perplexed and confused. Banking is hard to understand.

But you don’t have to understand it to own bank shares.

“Fractional Reserve” meaning that less than 100% of deposits are kept as cash by the bank is not something that the central banks sort of “allow”. It’s more like a very basic feature of how banking works and has worked since centuries before there was such a thing as a central bank.

Even the banks that strictly dealt in gold and silver in the middle ages did fractional reserve banking.

Without fractional reserve banking, a bank would just be a vault to store money. Deposits could not be loaned. We’d still be in the middle ages.

Regulators can impose a minimum cash reserve on banks but in Canada they did not bother to do so.

In today’s world a bank can easily borrow cash if it has a run on deposits. From the central bank in dire circumstances.

What banking regulators in Canada do impose is minimum capital ratios. That’s on the other side of the bank’s balance sheet versus the bank’s cash.

Using the term banksters is fairly juvenile. As a reader of this blog if you think banks make excessive profits then for gosh sakes buy bank shares or a financial ETF to participate.

#77 Faron on 09.04.21 at 7:38 pm

#74 When Will They Raise Rates? on 09.04.21 at 7:11 pm
#68 Penny Henny on 09.04.21 at 6:22 pm

So two (four?) people whose views haven’t changed in 40 or 50 years are telling me I have issues and am indoctrinated? Saturday night comedy hour hereabouts. Thanks! I also thank my mother, father and grandparents for the brains and ability to think critically and the opportunity to become educated. OMG LOL.

#78 Flop… on 09.04.21 at 7:47 pm

Having trouble reading today’s blog entry.

Think I sprayed too much onion juice in my eyes…

M47BC

#79 Dolce Vita on 09.04.21 at 7:50 pm

Lib candidate Raj Saini is no longer running for Kitchener Centre
9:24 PM · Sep 4, 2021

https://twitter.com/CanadianPolling/status/1434236060419121152

#80 Alex Très Bucks on 09.04.21 at 7:51 pm

#56 crowdedelevatorfartz

Animal House

———

That is not the correct answer, and not in a form of a question!

How much did you risk?

Ooooh….that will take you down to one dollar.

Now this!

https://www.youtube.com/watch?v=1mRG2oAQhso

#81 cuke and tomato picker on 09.04.21 at 8:05 pm

Number 43 you might want to look back to the convention
in March and see what the party voted about climate
change. WHY DIDN’T THEY HAVE A PLAN IN MARCH?

#82 Dolce Vita on 09.04.21 at 8:09 pm

PS: #70 mike from mtl

Forgot to mention that my “low end” Saeco Incanto lets me regulate the temperature, how many beans go into a serving (5 settings) and the grind diameter of the beans (7 settings).

Next time you go into one of your “decent brews” places specify to them your desired temperature, beans dosage and grind diameter.

As for the milk froth, I can regulate how much I want in a serving. Specify that too next time you go into one of your “decent brews” places.

Let me know how that works out for you and your “conscenti” brethren in Canada (know nothing).

—————-

I bought my first superautomatic espresso maker 35 years ago by Saeco, then owned by Gaggia.

#83 Flop… on 09.04.21 at 8:11 pm

I’m not sure the band ‘The Killers’ have still got the good stuff, but a verse on their new album might be a good description of the Canadian Banks during their song Dying Breed.

There’s gonna be opposition
Ain’t no way around it
But if you’re looking for strong and steady
Well baby, you found it
We’ll weather the coldest night
Baby, we’re a dying breed…

M47BC

https://www.youtube.com/watch?v=tOeV-efObZY

#84 Planetgoofy on 09.04.21 at 8:16 pm

#64 Turner Nation’s Distant Relative on 09.04.21 at 6:16 pm
Israel announcing 4th shots and more… Looks like shots forever:
————————–
Nice so I didn’t waist my time getting the first 2 shots as the bug has morphed. Now its the big D you need a boost or is it like software you need to load the first version then continually get up dates?…..Or just get #4?
You get the point, I’m being sarcastic of course. They love the power grab firstly and yes its still an experiment because they are still examining the data…NO?? What a gift to these gov’s that want more control.
I guess Ill just stay home till they figure it out. That sarcasm too.

#85 Doug Rowat on 09.04.21 at 8:19 pm

#72 Reality is stark on 09.04.21 at 7:06 pm
Canadian banks are the ultimate socialist altruists.
When they lent to the Reichman’s to build Canary Wharf they never bothered to look at the financials.
If you had a commercial property loan with the bank they didn’t care that you had a solid long-standing relationship with them, they called your loan.
After they took their hit on O&Y they went after you with fees to steal the money back after their own negligence.
They are a nasty bunch.
Over a 40 year period there is no comparison, the consumer is much better off dealing with an American bank.
An oligopoly our government thrives on to your detriment is not something to be proud of. You are ignorant if you disparage American banks referencing the financial crisis. Over a 40 year period it was just a blip.
Canadian banks oligopoly profits ultimately restrict opportunity. They are not your friends.

—-

Quite the ramble, but what does this have to do with banks as an investment? You don’t have to like them to profit enormously by owning them.

Not liking Tom Brady doesn’t mean you bet against him in Super Bowls.

Also fees aren’t stealing. They’re fees. If bank fees are crippling you financially you’re mismanaging your finances entirely.

—Doug

#86 Quintilian on 09.04.21 at 8:47 pm

#76 Shawn Allen:
” Banking is hard to understand.”

Perhaps you found it hard to understand, but I don’t.

Unsurprisingly, you misunderstood the gist of my post, and the obvious contradiction I pointed out.

That aside, banking is taught in detail in Econ 300, not that hard.

As for my reference to “banksters” suggesting that the executives lack moral traits, I stand by that.

#87 baloney Sandwitch on 09.04.21 at 9:21 pm

Big 6, Canadian banks a racket. They are an extension of the government and rent seeking institutions. Same as the big 3 telecoms. Oligopolistic kleptocracy.
I own all 9, I am ashamed to say.

#88 mike from mtl on 09.04.21 at 9:23 pm

#75 Dolce Vita on 09.04.21 at 7:28 pm

As for your YVR “brews”, they are hideous. They just are.

Curious, how do you make your espresso?
///////////////////////////////////////////////////////

Since you asked, dry processed Yemen or when unavailable Ethiopian. This is pretty much /the/ most complex, body, leathery cup there is, and of course straight espresso zero milk to mask. I know from my own preferences I like low acidy, no ‘clean cup’ and complex dry processed. New World Arabica washed is simply boring in my personal taste.

I would have thought a Caffè latte/Café Latte are more of a Parisian thing?

No I don’t go as far into dose percentages and other time waste, set my La Marzocco GS3 to 95c and all is good. That level of machine just means I have a high level of consistency and tweaking further is stupid. The actual bean, roast and grind pretty much make almost all the difference.

I don’t doubt Lavazza is popular for no reason, same how Folders and KD are here. They serve a purpose and market for a reason.

Would be analogous to say Itoen green tea (most often found in the ubiquitous vending machines) is how Japan thinks of proper tea. True to an extent is not uncommon but that is worlds away from how Tea is in that part of the world.

This is not so dissimilar to Wine. Personally I as well prefer old world complex blended ones over the overly fruit forward new world ones. California style are simply adult Juicy Juice.

#89 Jens on 09.04.21 at 9:26 pm

Big Five banks’ Tier 1 capital ratios…are 12.9%.
————————–
So that means, if 12.9% of Canadians default on their high-ratio mortgages, the banks become illiquid?

If…

#90 millmech on 09.04.21 at 9:50 pm

Faron,
Have most of my funds in B&D portfolio(90%), hands off to prevent too much damage if plan goes sideways. Made bank on meme stocks earlier this year mainly on GME, up and down, bought and sold GDNP.V, EXRO.V and a few others and did surprisingly well. Holding LEAPS on VIAC, no loss yet. Bought in to Cardano at $1.35 and going to keep holding to see if it hits $6.00, bought Ethereum at $3500 and holding.
Splitting my profits into DF.TO, DE.V and QYLD( as another one has posted here) as my HISA so to speak.
YTD returns 38% because of meme stock performance.
I trade on market momentum and sometimes hope and have done well, this year. Took risky plays(margin, LOC) because everything was a bargain and knew the financial system was not going to crash.
All in all my 10% risky plays have outperformed my 90% safe stuff.
Every buy/sell is documented in a book with a thesis on why the trade was made with follow up notes documenting the success or failure of each move. By doing this I am better able to monitor my trading patterns and to remove (hopefully) emotion from the equation. Investing is more about psychology than finance, at least for me.

#91 mike from mtl on 09.04.21 at 9:53 pm

#75 Dolce Vita on 09.04.21 at 7:28 pm

…remember French cuisine is from Italia
///////////////////////////////////////////////////////////

Not heard of Pellini but will check them out though ground coffee has a short shelf life. Whole bean can be good for a week or two.

Yes agreed French cuisine (and derivatives) is an over complication of Mediterranean cuisine. Adding butter/lard/fats just because we could is 19th century cuisine in summary.

#92 the jaguar on 09.04.21 at 9:55 pm

I like Doug’s response (85) to (72),

It’s direct and realistic. Lord knows we need a heavy and soaking rain of this kind of approach. Fourth post today. Exit, stage left.

#93 Sail Away on 09.04.21 at 10:03 pm

Re: coffee

Wow, lots of time and effort with coffee on here. This is my procedure:

1. Fill reservoir with 12 cups water
2. Scoop in 6 heaping tablespoons of Folgers or Maxwell pre-ground (from Costco)
3. Press start

Five minutes later, a steaming, delicious pot of coffee.

The next day, 1/2 the pot remains, so fill a cup, pop it in the micro for 1 min, 10 sec, and Presto! A steaming, delicious cup of coffee.

#94 When Will They Raise Rates? on 09.04.21 at 10:16 pm

#77 Faron on 09.04.21 at 7:38 pm
#74 When Will They Raise Rates? on 09.04.21 at 7:11 pm
#68 Penny Henny on 09.04.21 at 6:22 pm

So two (four?) people whose views haven’t changed in 40 or 50 years are telling me I have issues and am indoctrinated? Saturday night comedy hour hereabouts. Thanks! I also thank my mother, father and grandparents for the brains and ability to think critically and the opportunity to become educated. OMG LOL.

—-

I see.

Your “brains” and “ability to think critically” led you to the conclusion that oposition to AOC, Nancy Pelocy and other fringe leftist lunatics must be because of racism and hatred of women.

OMG you are a genius! No indocrination at all, just critical thinking!!!

#95 S(tarb)ucks on 09.04.21 at 10:45 pm

#93 Sail Away

The next day, 1/2 the pot remains, so fill a cup, pop it in the micro for 1 min, 10 sec, and Presto! A steaming, delicious cup of coffee.

———

Our Nuclear Plants are falling apart. Quit wasting energy nuking stuff.

Just add booze to old coffee and start your day ready for what the politicians are about to throw at you.

Or pretend it is Starbucks cold brewed $6 coffee.

Either way…save energy. Climate change, remember?

#96 Doug Rowat on 09.04.21 at 10:55 pm

#89 Jens on 09.04.21 at 9:26 pm
Big Five banks’ Tier 1 capital ratios…are 12.9%.
————————–
So that means, if 12.9% of Canadians default on their high-ratio mortgages, the banks become illiquid?

—-

Mortgage delinquency rates in Canada are currently 0.25% and almost never get above 0.50%. So yes, a 12.9% delinquency rate might do the trick.

But your bank stocks would be the least of your worries at that point. Keep your shotgun handy.

—Doug

#97 Faron on 09.04.21 at 11:05 pm

#94 When Will They Raise Rates? on 09.04.21 at 10:16 pm

AOC, Nancy Pelocy and other fringe leftist lunatics

Oh, wow.

Hardly fringe. They were elected in their districts. As democrats. Not greens. Not communist. Plain jane dems. So, really not that far left. Go fish.

Critical thinking question: who is the “they” in your handle? LOL.

#98 Ponzius Pilatus on 09.04.21 at 11:15 pm

#93 Sail Away on 09.04.21 at 10:03 pm
Re: coffee

Wow, lots of time and effort with coffee on here. This is my procedure:

1. Fill reservoir with 12 cups water
2. Scoop in 6 heaping tablespoons of Folgers or Maxwell pre-ground (from Costco)
3. Press start

Five minutes later, a steaming, delicious pot of coffee.

The next day, 1/2 the pot remains, so fill a cup, pop it in the micro for 1 min, 10 sec, and Presto! A steaming, delicious cup of coffee.
——————
You can take Sailo out of the USA.
But you can’t take the USA out of Sailo.

#99 Russ on 09.05.21 at 12:01 am

On Banks;

We have learned that Garth & Co. will not recommend holding individuals stocks in most cases. But a few years ago when he detailed an RBC depression of 3 or 4 % beat-up in a day in support of his position, I thought… ‘Why not a “fund” of CDN banks with weighting targets?”

So RBC & TD @ 25% and the rest at equal. IF the market beats up on one it is a signal to add it. This is just a little fun I have in my hobby account that the real FA doesn’t deal with.
.
.
On Coffee:

Charbucks & Timmies is crap, agreed. I think McDonalds coffee is better if I need something on the road.

At home, the main coffee choice is custom roasted from Pot of Gold, Thetis Island. Found them cruising the Gulf Islands in the early 80s and have been a mail-order customer ever since. The coffee order is roasted on Sunday and we get it delivered to the home mailbox on Tuesday.
Favourites are French Roast & Espresso #29 (it took 29 times to get the right combination!)

I was surprised to learn a few years ago that some homes don’t get Canada Post mail delivery to the door. Barbaric.

Anyhoo, the Delonghi machine is set at medium temperature and cups are preheated by hot kettle water (returned to kettle for environmental considerations dontcha know).

I don’t go for any of that latte frothy business, just get the caffeine in straightline with no animal fats.

Cheers, R

#100 Flop… on 09.05.21 at 12:07 am

Erin O’Toole has decided to release his version of the Rick Springfield classic Jessie’s Girl

———————————————————————-

Justin’s not my friend
Yeah, I know he’ll never be a good friend of mine
But lately something’s changed, it ain’t hard to define
Justin’s got himself a job and I want to make it mine

And I’m watching him tell his side
And I can’t compete with his hair and body, I just know it
Yeah, and he’s holding meetings with Chrystia Freeland in his office late, late at night

You know, I wish that I had Justin’s job
I wish that I had Justin’s job
Why can’t I find enough votes to get a job a like that?

I’ll play along with this charade
There doesn’t seem to be a reason to change
You know I feel so dirty when they start talking housing affordability
I wanna tell the voters that we like the taxes, so the point is probably moot

‘Cause Singh is watching him with those lefty eyes
And Scheer is secretly hoping I do worse than him, I just know it
And Jagmeet is Tiktoking late, late at night

You know, I wish that I had Justin’s job
I wish that I had Justin’s job
Why can’t I fit into a wardrobe like that?

Gonna get Justin’s closet
I wish that I had Justin’s hair
Why can’t I find a Winnipeg on a map?
Why can’t I charm a woman like that?

And I’m lookin’ in the mirror all the time
Wonderin’ what they don’t see in me
I’ve been funny, I’ve been cool with the lines
Ain’t that the way elections are supposed to be?

Tell me, why can’t I find a stylist like that?
You know, I wish that I had Justin’s job
I wish that I had Justin’s job
I want Justin’s job

Why can’t I find woman voters like that?
Like Justin Trudeau
I wish that I had Justin’s job
I want, I want Justin’s job…

M47BC

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

#101 Sara on 09.05.21 at 12:32 am

A fun to read article from health.com that explains what it means to be considered a ‘Covidiot’ and why ‘Covidiots’ think the way they do.

https://www.health.com/condition/infectious-diseases/coronavirus/what-does-covidiot-mean

#102 Nonplused on 09.05.21 at 1:13 am

For SunShowers;

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

I hate banks…
I just can’t stand ’em.
Gimme a shovel & man I’ll plant ’em.
Six feet under thats where they belong…
I hate banks is the name of this song.
I think I’ll rob myself one or two…
Yeah I hate banks, yeah, how ’bout you?

Well…lend me a nickel & lend me a dime,
repossess my house any old time.
Financial institutions think they’re so high faluting…
Just a bunch of fruits in three piece suits,
trying to steal all my loot.
Things are smelling pretty rank,
We must be near a stinking bank.
………

#103 DavidW2 on 09.05.21 at 6:15 am

What ETFs are folks here holding for exposure to the big 5 banks?

#104 tbone on 09.05.21 at 9:14 am

# 103 DavidW2

you can look at ZEB . Its a BMO product , .28 MER .

ZWB is a covered call product that yields over a 5 % dividend if you are looking for cash flow.

Attached is an article regarding etfs

https://wealthawesome.com/best-canadian-bank-etf-in-canada/

#105 Phylis on 09.05.21 at 9:28 am

Yesterday’s thought. Principle residence. Owners of multiple properties pick and choose which residence is principle. Why shouldn’t the latest pick be subjected to evaluation and taxation at that moment before it is deemed ‘principle’? What has the cra been doing with all those sales declarations?

#106 tbone on 09.05.21 at 9:30 am

https://www.bmogam.com/ca-en/advisors/zeb-bmo-equal-weight-banks-index-etf/

BMO reduced MER to 0.28 . recently on ZEB .
Article shows the MER at a higher rate.

#107 Wrk.dover on 09.05.21 at 9:46 am

#93 Sail Away on 09.04.21 at 10:03 pm
Re: coffee

Wow, lots of time and effort with coffee on here. This is my procedure:

1. Fill reservoir with 12 cups water
2. Scoop in 6 heaping tablespoons of Folgers or Maxwell pre-ground (from Costco)
________________________

Ewww, gross! How about 6 cups water:12 level tablespoons. PC gourmet on sale, 8 bucks big can.

#108 BillyBob on 09.05.21 at 9:48 am

Well, to give folks a break from Faron’s endless campaign of trolling and vitriol, here’s something a little more positive. With things continuing to open up, why not take a little vacation to Europe and get some culture?

I know, I know. Dividends, banks, hilariously complicated investing schemes. Loads of fun, very interesting. But take a break from that and swap it for some incredible beauty for a change.

These are some of the places I like to spend time when not burning copious amounts of fossil fuel in the service of your online purchases. Parukářka is about 200m from our apartment.

https://www.expats.cz/czech-news/article/expats-cz-staffers-nominate-their-favorite-prague-parks-following-accolade-for-the-city

Broaden the horizons, it’s good for the soul and might help alleviate the rampant mental illness so evident in the comments.

————

@Ponzi – nope, my uniform isn’t brown but I’d happily wear one – UPS pilot colleague of mine makes $192,000 USD/yr. And that’s as a First Officer (copilot). You don’t even want to know what the captains make lol.

#109 crowdedelevatorfartz on 09.05.21 at 10:25 am

@#98 Ponzies Perfect Pot Percolates

“You can take Sailo out of the USA.
But you can’t take the USA out of Sailo.”

++++

Ahhh yes ,
Euro coffee snobs and their disdain for Cafe American.
I seem to recall Sail Away is Venezuelan and they probably grow coffee beans than Austria.

That being said.
One of the busiest coffee shops on Commercial Dr has for decades served ….day old, refrigerated coffee.

The owner realized years ago he couldn’t keep up with the morning rush for coffee.
Any left over coffee from the previous day is poured into gallon jars and refrigerated over night.
Next morning he pullsthe “cold” coffee out and purs it into large pots set on medium heta.
One pot is black coffee, one pot gets 1/2 a gallon of cream, another pot gets cream and sugar.
He then fresh grinds coffee beans and has coffee brewing on the back counter.

The majority of the people rushing in , buying coffee and rushing out are paying good money and happily drinking…..day old coffee.

Time for MY morning coffee.
(1/2 a pot water and 4 heaping spoonfuls of fresh ground beans…..ahhhhh perfecto)

#110 crowdedelevatorfartz on 09.05.21 at 10:31 am

@#100 Flop

Not bad.
I was thinking we could sing about Trudeau on election night with Midnight Oil’s song.

Beds are Burning

I’ll leave it up to you to update the lyrics… :)

#111 Tarot Card on 09.05.21 at 10:32 am

Thanks for the blog Garth
Thanks for the post Doug
And thanks Russ for the coffee tip, sounds like a day trip to Thetis island is in order. There is a good coffee shop in Qualicum beach called French Press, they came in second for best coffee in the annual coffee competition in Seattle
And their carrot cake is to die for.

To David, ZWB ETF owns the banks pays 5,69% distributed monthly. One caveat is it does covered calls, just so you are aware.
Do some research go BMO ETFs and then look up each ETF and it lists the major holdings and dividends paid
https://www.bmo.com/gam/ca/advisor/products/etfs#–tabs-1630851996776-

Good luck

#112 the Jaguar on 09.05.21 at 10:45 am

Billy Bob:
Did you ever figure out who was posting under your handle? This post is not mine. I think Sail Away experienced the same thing once. He seemed to know who the perp was. Given it’s the three of us that have been chosen, seems obvious who is doing it. A new low. Garth, can you enlighten us with the IP address?

+++++++#92 the jaguar on 09.04.21 at 9:55 pm
I like Doug’s response (85) to (72),

It’s direct and realistic. Lord knows we need a heavy and soaking rain of this kind of approach. Fourth post today. Exit, stage left.

#113 Sara on 09.05.21 at 10:49 am

#71 Faron on 09.04.21 at 6:42 pm

“No, the real mystery you bring to me is how someone seemingly intelligent can have zero self reflectivity and humility and by extension such a weak and fearful ego. Best I’ve come up with is YASSV.”

Not a mystery. Sociopathy is distributed equally amongst all intelligence levels. Lack of empathy has no correlation with lack of intelligence.

What is YASSV?

#114 Sail Away on 09.05.21 at 10:52 am

#98 Ponzius Pilatus

You can take Sailo out of the USA.
But you can’t take the USA out of Sailo.

———

The only food product I bring on remote backpack hunting trips is corn chips. That’s all. Lightweight, high fat, unfreezable, crushes down small, little smell to attract bears. Always a foraging bag in my pocket for forest bounty, though.

I tell you- fresh liver or heart after a week in the bush sure tastes fantastic. Fried in fat and seasoned with crushed corn chips.

Good weight-loss plan, too. I should run exorbitantly-priced excursions.

#115 Sail Away on 09.05.21 at 10:55 am

#103 DavidW2 on 09.05.21 at 6:15 am

What ETFs are folks here holding for exposure to the big 5 banks?

———-

Why bother with an ETF? Just salt it amongst the 5.

#116 Sail Away on 09.05.21 at 11:02 am

#103 DavidW2 on 09.05.21 at 6:15 am

What ETFs are folks here holding for exposure to the big 5 banks?

———

RY and TD are interlisted with NYSE, so holding the individual stock give currency flexibility.

#117 Planetgoofy on 09.05.21 at 11:23 am

Doug
Investing in banks gives one the ability to make money…and return some of the ripoff fees that they take.
Yes banks and especially the RB have a crafty way of gouging alot of money from the public. Not to mention the safety from the leveraged fraction system they enjoy and charging fees and interest when you get nothing on you deposit.
That is why cash IS trash because int rates vs inflation your capital is being destroyed and yes forcing you to gamble, speulate or take on more risk for a return.
They are gaurenteed cash pigs the way they have the system setup.
When a market meltdowns occur they are never asked to take a hit.
Its the people that can least afford it that do. ( USA 2009 ect) eg. the gov asks me in the pandemic to subsidize my commercial renters rent….
Yes i still pay my mortagage ( now gone) but they have access to mountains of virtual free capital. They pay nothing for rates and back to fractional of turning 1 into 10 at minimum.
Why doesn’t our crooked goverment ask them to kick in take a hit as it costs them virtually nothing?? It woulg never happen.
Oh and the increased taxes they may have to pay? WILL be passed onto the consumer…gaureteed. Its pure greed and Ive just scratched the surface.
Give me the fractional system and Ill become a bank.

#118 Planetgoofy on 09.05.21 at 11:28 am

My point was theres nothing honorable about banks.
But you can invest in them because of that.

#119 Ponzius Pilatus on 09.05.21 at 11:55 am

#109 crowdedelevatorfartz on 09.05.21 at 10:25 am
@#98 Ponzies Perfect Pot Percolates

“You can take Sailo out of the USA.
But you can’t take the USA out of Sailo.”

++++

Ahhh yes ,
Euro coffee snobs and their disdain for Cafe American.
I seem to recall Sail Away is Venezuelan and they probably grow coffee beans than Austria.
—————————-
No coffee snob here.
But the Viennese Coffee Houses are legendary.
I’m a beer snob, though.
Budweiser is “piss beer”.

#120 Ponzius Pilatus on 09.05.21 at 11:58 am

#110 crowdedelevatorfartz on 09.05.21 at 10:31 am
@#100 Flop

Not bad.
I was thinking we could sing about Trudeau on election night with Midnight Oil’s song.

Beds are Burning
————————
You becoming a tree hugger?
About time.

#121 IHCTD9 on 09.05.21 at 12:02 pm

#33 NoName on 09.04.21 at 2:12 pm
Someone yesterday mentioned trades and why they are peest, id just like to add price of decent tools to the list. All, majority of my tools are made in Germany or usa, but there are few pices that came from italy and cheque republic. Lots of german tool stuff is sourced out to eastern europe. If you come acros Italia USAG mechanic tools pick them up they will outlast you.

Can you believe this, cheapest GOOD players and SMAL screwdriver 50cad. When tool store dude told me i went all dizzy… Good thing that I am not haircutter, decent ceesors 300+, drop them once and they are done.

And i hear people complaining about staplers all the time…
https://youtu.be/Vd4fj9Efl4s

Tools in question.
Chanelock side cutters (lond strai one)
Wera 4×2.5mm flat screwdriver
—- —

Look on the used market for old tools where you want great quality. I have an ancient quick release Record vise made in England. Nodular Iron, unbreakable. I understand some were even made with alloy steel and drop forged – those would be bomb proof! Research required, and usually a restoration too, but worth it. Yard sales and Kijiji.

Good modern tools are out there too, but as you note – you’ve gotta pay for them. I shelled out 45.00 for a pair of snap ring pliers a few years back, don’t regret it a bit. 4340 heat treated to 52RC, engineered for quality not price, made in the USA. Junk tools from China take all the fun out of the work.

In my experience, the second I could afford good quality, I went out and bought it. The more expensive the item, the more I insisted on good stuff. Today we own Japanese cars and American trucks, German and American property maintenance machines, Japanese quads and motorcycles, not to mention an eclectic mix of Canadian, American, and German heavy equipment and hand tools – much of it older than I am.

Crap products from China have their place, but it ain’t where you need something that lasts, things that will be pushed beyond all expectations on occasion, and definitely not for a tradesman who beats on their equipment everyday. I buy Chinese garbage for things like wrenches and socket sets, they are good enough, but anything that costs more than 300.00, I buy decades old, or new Western built good quality equipment.

#122 David Greene on 09.05.21 at 12:10 pm

Well, if I remember right, Mu Mu is the cat sorority.

#53 Alex Très Bucks on 09.04.21 at 4:59 pm

Today’s final Jeopardy question is:

Alpha Beta
Pi Delta Pi
Omega Mu
Lambda Lambda Lambda

These are not Covid variants. These are fraternities from…

#123 Horse Dewormer? on 09.05.21 at 12:12 pm

People like Sara wonder why people on the ‘right’ don’t trust the experts, and science.

Well maybe it’s because of the constant and obvious mountain of lies and fake news they have seen being promoted by ‘experts’ and media over the past 6 years.

Now Ivermectin probably, almost assuredly, doesn’t work as a therapeutic for Covid, but when media calls it ‘horse dewormer’ when in fact it has many uses in humans, we know right away there’s more to this than public health concerns.

And when media like Rolling Stone publish totally false stories that ‘Oklahoma Hospitals are being over-run by horse dewormer overdoses’ which are picked up and repeated by mainstream media (Rachel Maddow) with absolutely no source or ‘fact checking’ that they so love to do for their opposition, you know it has nothing to do with health, and everything to do with trying to shame and dehumanize their political opposition.

Glenn Greenwald on the latest fake news episode, which every single person on the right knew was BS from the first instant, but top journalists apparently didn’t.

I really hope it’s worth the total destruction of credibility both of media and the medical profession as the left continues their childish attempt to make the right look like the dumb ones. It looks like the opposite to us, we can see the BS that you lap up like good little puppies.

https://twitter.com/ggreenwald/status/1434538877642027015?s=20

You forgot about the cows. – Garth

#124 Quintilian on 09.05.21 at 12:13 pm

What a farce, what an affront to the principle of the free market.

A political drudge is given the title of “ Governor” and controls the lifeblood of the economy at his whim.

He rigs the game, and determines who wins or loses, based on the nod he gets from the politicians who appoint him.

These are the great men of impeccable character that have been bestowed with the responsibility of insuring the integrity of the Canadian Monetary System, through the tentacles know as the Big Six:

Tiff Macklem, Stephen S. Poloz, Mark Joseph Carney

#125 I forgot the cows, Rolling Stone remembered the gunshot victims on 09.05.21 at 12:44 pm

The most obvious tipoff to the latest Rolling Stone fake story was they not only claimed non-existent cow dewormer but had to add in that the hospital overflowing with Trump supporters eating horse paste was preventing all the ‘gunshot victims’ from being treated. ROTFLMAO.

“Gunshot victims left waiting as horse dewormer overdoses overwhelm Oklahoma hospitals, doctor says https://rol.st/38CChjl

I mean, how stupid would you have to be to believe this stuff?

#126 Doug Rowat on 09.05.21 at 12:51 pm

#118 Planetgoofy on 09.05.21 at 11:28 am

My point was theres nothing honorable about banks.
But you can invest in them because of that.

—-

Nothing?

They never provide a safe place to deposit money? Never provide a loan or credit that is needed? They employ no one?

Yours is an overstatement. And my wager is that most of the commenters complaining about them freely do business with them every single day.

—Doug

#127 Sara on 09.05.21 at 1:50 pm

#123 Horse Dewormer? on 09.05.21 at 12:12 pm
“People like Sara wonder why people on the ‘right’ don’t trust the experts, and science.”

You didn’t like the article I linked to about COVIDIOTs?

#128 slick on 09.05.21 at 7:03 pm

Many years ago, I had the opportunity to prospect for the HA. I decided to get a job and buy bank stocks. Similar result, without the risk of going to the slammer.