The CB and thee

The Tiff has spoken.

The CB’s announcement Wednesday was a nothingburger on the outside, but meaty inside. The Bank of Canada’s key interest rate remains unchanged going into the end of 2021, (no surprise), so no increase for mortgages, LOCs, home equity lines or GIC rates.

But this will change And Mr. Market is betting 50-50 that things hot up starting next month. There were a few clues in bank boss Tiff Macklem’s announcement underscoring what this pathetic non-monetary but athletic blog told you yesterday. Here’s the stuff that matters…

  • The labour market is strong, as witnessed by blowout numbers in November. This means flaccid ‘slack’ in the economy is hardening fast, so the need for stimulus is waning (that was arousing). We are at pre-pandemic levels. So up she goes.
  • The CB is no longer saying inflation is temporary. It’s not, of course. Houses, wages, gas and food will prove that.
  • Despite Omicron, BC floods. whatever Drake just did and the screwy supply chain, economic growth is right where the bank thought it would be. No need for more stimulus.

This is consistent with what markets expected. Inflation’s running hot. The virus is no longer an economic threat. There are jobs, jobs, jobs galore. GDP growth is on target. Any stimulus the country needs will be fiscal from now on, not monetary – meaning it comes from government sending, not central bank largesse. And this paves the way for a tightening cycle.

In other words, the central bank wants to stop goosing the economy and let Chrystia take over. So weekly bond-buying (to suppress interest rates) is ending and the next shoe to drop will be rate increases starting prior to the federal spring budget, expected to contain lots of taxes and even more spending. Many economists are now expecting an “aggressive campaign” of hikes. The current 0.25% bank rate will ratchet higher until it surpasses 2%. Still cheap by historic standards, but forever cementing the grave of sub-2% mortgages.

In fact people who borrowed n a five-year term in 2020 and 2021 will be renewing north of 4% in 2025 and 2026. Will houses cost more then? Maybe. Will monthly payments surge? Absolutely. Bond traders have been giving 50% odds that all of this starts in January, 2022. That’s despite the CB’s own repeated statement that rates swell starting in “the mid quarters” of next year. Whenever. It’s happening.

Now, higher rates = more challenges for investors.

My suspender-snapping, prescient and omnipotent portfolio manager buddies and I have been preparing for this since last April when it looked like Covid would eat the world. Pandemics, we knew, are temporary. They end. Extraordinary measures cannot last. Recovery is inevitable. And tthough this slimy little pathogen has been around a lot longer than anyone expected, normalcy is at hand. It’s all predictable.

When markets plunged in Q1 of ’20, people with B&D portfolios were spared the 35% haircut the equity cowboys suffered. At that point stocks slumped and bonds rallied. So we did the obvious – rebalancing to trim the fixed income and buy into equity weakness. Nibbles, not bites, remembering that the No.1 goal remains the same – “don’t lose money.” Then as stock markets moved dramatically higher anticipating the reopening trade, investors benefitted – pushing the annual return far above target.

But as stocks rise, hopes grow for the post-pandemic Roaring Twenties and CBs start to wean the economy off their low-rate stimulus, bonds get whacked. There’s an inverse relationship between what a bond is worth and what it pays – so as yields rise, market values go down. This is the Achilles heel of being B&D. A 40% bond position ends up being a huge drag on portfolio performance.

How to fix that?

Lighten up on government debt, which is the risk-free and offers great insurance, yet pays the least. Especially bonds with long durations (time left to maturity). Bonds should be short, and include investment-grade corporate debt plus some provincial issues, both of which offer more than the feds. Also in larger portfolios there’s room for a floating rate bond ETF, helping shield against the rising cost of money.

Of course, rate-reset preferreds feed on rising bond yields. They grow more valuable as interest rates augment and have had a great performance in 2021. These are less volatile than common shares, pay a fixed (4%) dividend, yield a tax credit and are ‘preferred’ because divvies on prefs must be fully paid before common shareholders get theirs. This is why a healthy hunk of the fixed-income portion of a balanced portfolio should be in this asset class.

This week a few troublemakers below decks have whined about VBAL, an exchange-traded fund that I dissed as being less than ideal. They want a simple, easy, one-step, low-fee (.25%) way of having a balanced approach to investing. Fine. Go ahead. But understand what you’re buying. This ETF is 40% bonds. No preferreds. No serious rate protection. As a result, VBAL has given a 7.8% return during 2021. That compares with 13.4% for the GreaterFool® version of a balanced investing approach.

Investing isn’t a race, but if you know what’s coming (higher rates, lower bonds) why not ride it?

About the picture: “After meeting with our advisor last week, we concluded that we can now afford a puppy!” writes Lenka, from Hamilton. “In all seriousness, isn’t she cute? Her name is Silvie. I thought that maybe you can use the photo for your blog that we have been enjoying for over 10 years, pretty much daily. I often wonder – how do you write every day? I applaud your dedication and perseverance. Please keep writing!”

127 comments ↓

#1 Millennial 1%er on 12.08.21 at 1:45 pm

VBAL? VGRO even? 100% equity ETF son. I don’t even need the money

whatever, i’m 20 something.

Age is irrelevant. We all live in the same world. – Garth

#2 I'mshort_corpdebt on 12.08.21 at 2:00 pm

Nothing burgers has been and will continuously be what the public is fed. Just look at the ‘food’ content inside a BigMac, BKing, etc… Sadly the Five Guys resto down my street packed it in last month. They had quality but got scared of the Gretas.

What does this have to do with today’s most informative post? Well, with all the jawboning, teeth gnashing from our CB and the apparatchiks in Ottawa, nothing will happen with interest rates. How do I know that?? Well, the markets ran up the wall of worry for the past 12 months on the idea that rates were going up in 2022-23. That has clearly been a bogus attempt.
Now recently the markets tanked on the fact that rates will go down in 2024. That clearly will not be necessary as rate changes will never happen.

But now markets are officially addicted on Big Nothing Burgers. Everything is based on thin air!

#3 Dr V on 12.08.21 at 2:10 pm

Strange looking kitty. Still cute though.

#4 Prince Polo on 12.08.21 at 2:11 pm

For those beginner blog-doggies with under $100K of investable assets, what could possibly go wrong with 20% DXP & 80% VGRO? Oh right – being h’m’r’d in the comments section for giving dumb advice…d’oh!

#5 TurnerNation on 12.08.21 at 2:20 pm

What is really going on in Ontariowe – where the province is to remain under Economic Lockdowns, capacity restrictions and CV rules – designed to cripple small business? ‘Cause the science shows…small business capacity makes people sick!

1. At a network of 3 big downtown Toronto hospitals. Three of ’em combined:

https://www.uhn.ca/Covid19#
Total number of COVID-19 cases at UHN hospitals: 6

2. At Sinai hospital – downtown Toronto.

https://www.sinaihealth.ca/covid19/
Total number of COVID-19 cases at Sinai Health hospitals: 2

3. At a network of 2 hospitals in Toronto.

COVID-19 cases at Unity Health Toronto
Total number of COVID-19 cases at Unity Health Toronto sites: 2

https://unityhealth.to/patients-and-visitors/covid-19/#covid-19-cases-at-unity-health-toronto-block_60070e3f12217

—-
—- Every system has been turned against us. Health care still being rationed, backlogged. Yet the “Field hospitals” build at cost of 100s of million of dollars? Torn torn. Also in the UK :

“Private hospitals treated a total of just eight Covid patients a day during the pandemic despite a multi-billion pound deal with the government to help stop the NHS being overwhelmed, a report reveals.
And they also performed far fewer operations on NHS-funded patients than usual, even though hospitals has suspended much non-Covid care, according to research by a thinktank.”
https://www.theguardian.com/world/2021/oct/07/private-hospitals-treated-eight-covid-patients-a-day-during-pandemic-says-report

#6 Ponzius Pilatus on 12.08.21 at 2:26 pm

#121 Sail Away on 12.08.21 at 11:40 am
Hey, how are the folks who jumped on the renewables bandwagon about a year ago doing?
Just a quick peek at Brookfield Renewables shows -43% YTD. And that in a blisteringly successful year for most other stocks. Oh my.
Nonplused seems to have nailed it.
I drive a Tesla because it’s fast and cool, not to save the world.
————————
Not an expert on renewables.
But as a long time Accountant doing due diligence analysis, I like to chirp in.
First of all, renewables are not tech stocks with their crazy valuations.
Second, it would appear that the heavy front end fixed costs associated with renewable investments are dragging down early returns, with a later break even point.
I would assume that the first oil pumps also took a while to generate profits.
Analogy:
Installing a sun roof, will cost you a bundle up-front, but in the long run, after the break even point, you’re home free.
Question Sailo.
Thought you drive a Tesla to save on accommodation costs?

#7 Caffeine Monkey on 12.08.21 at 2:28 pm

Canadians have an appealing choice: would you rather be punched in the face by inflation or kicked in the groin by rising interest rates?

#8 Linda on 12.08.21 at 2:28 pm

Silvie is indeed a cutie:)

I was a tad surprised that the CB didn’t decide to begin easing rates higher, given how robust the inflation numbers have been. I don’t see those higher costs for various goods/services easing off any time soon, so what gives here? Is the CB going to play a game of chicken regarding rate increases? Is the government pressuring the CB to hold rates steady as she goes to keep the RE gasbag afloat? Not to mention what higher rates will do to government balance sheets, though our current government seems to be happy to continue to add to the sea of red ink so maybe higher rates aren’t a concern.

#9 Ponzius Pilatus on 12.08.21 at 2:29 pm

#3 Dr V on 12.08.21 at 2:10 pm
Strange looking kitty. Still cute though.
————————
Haha.
At first glance, I thought the same.

#10 VladTor on 12.08.21 at 2:31 pm

Garth, Yesterday….I could do one-handed pushups with Dorothy on my back (ask her).

***********

OK! I was busy to ask Dorothy yesterday.
Dear Dorothy, can you prove, please this. Do you remember which hand Garth using for this exercises? How many times Garth could do it? Do you have pictures those exercises?

Thank you!

She’s busy oiling my abs. – Garth

#11 Catastrophe on 12.08.21 at 2:36 pm

Garth . . . enough with the cats already!

#12 Dolce Vita on 12.08.21 at 2:37 pm

Can’t argue with you Garth. Followed your advice and my Threadbare Portfolio is up and thanks you. *

YTD 27.24% and 18.83% (CAD Cash & CAD TFSA). No biggie for a lot of the Pro’s that read/comment on this Blog but for me, wow.

Oil stuff way up thanks to an Oil ETF and of course a low $’s invested, high risk Oil ETN with glorious dividends per month (+34.6% dividend yield Nov. though Oct. a 1/3 of that). I know why Kenney has been crowing on Twitter about his oil economy and GREAT for my province of birth Alberta (and me).

———————

* And my Threadbare Portfolio wishes that Pfizer’s CEO would STFU until he has concrete data. The mere mention of the “O” word sends Mr. Market into a tailspin like about 2 hrs ago…recovering now.

#13 Bogled on 12.08.21 at 2:40 pm

Given some recent shots at VBAL, shouldn’t a “40/60” B&D
portfolio with half it’s “Safe stuff” in preferreds, be more accurately compared to a typical 30/70 balanced/growth
portfolio in terms of risk and returns, falling somewhere between VBAL and VGRO?
Just trying to sort apples and kumquats.

#14 chalkie on 12.08.21 at 2:42 pm

My friend who we will call Joey is in his 70’s and still lives in his grandfather’s home in the big smoke that was bought in the 1920’s for just over $6000 we are told, a lot of money for that point in time, Joey had the home passed down to him from his father. Joey lives a modest live style on a small pension. The home sets on a double size lot and still has plenty of charm. A big smoke, neighborhood neighbor being a realtor keeps bringing Joey over a bottle quite often that Joey likes and tells Joey at least one a week, if you ever decide to sell, don’t forget me, I can easily get you 2.4 million for this home, Joes replies “I can do that for sure” and keeps enjoying the free drink, a free drink that will never give the realtor any pay out in Joey’s lifetime. I asked Joey, why he keeps allowing the realtor to bother him and Joey replied, “I can put up with that”. When I asked Joey why he does not tell the fellow the truth and let him know that both his only son and his son’s wife are both Realtors in the big smoke, “he replied, why would I ruin a good thing that I never started. For now, Joey sits happily on his porch & keeps enjoying his favorite free drink in the big smoke on his small pension. Listen here folks is, “money is not everything & it don’t buy you complete happiness”, family homestead is what matters most, or perhaps the following in Dad’s footsteps generation may quietly have other ideas?

#15 Ponzius Pilatus on 12.08.21 at 2:43 pm

Musk is entering the Bitcoin market in a big way.
Is he going roque?
————————————-
Musk’s new innovation aims to give the everyday working Canadian true financial freedom. Musk said: “Now that I have been able to transform the car industry, I will turn my efforts to transforming the finance industry as we know it. And thanks to Justin Trudeau i’m able to start helping Canadians first! Bitcoin X™ will be the perfect way to do it. ”
Unfortunately Elon has landed in some hot water with the Royal Bank of Canada as Bitcoin X is set to completely uproot the immense power that the banking industry has over Canada. Prominent economists have been predicting such a system from Musk after following this project that was years in the making. The Canadian Minister of Finance , Chrystia Freeland, recently said: “This product is rumored to predict how the market will move, and if this is true, only a limited number of people can become massively wealthy with no risk involved.” Many other economists think the same, and it seems that the speculation has become reality today.
———————
Go to the link, and see the future of investing, or not.
Caveat: Could be a hoax. Too good to be true.

#16 Dolce Vita on 12.08.21 at 2:44 pm

Home of the Geneva Conventions.

“Doctors demand priority for vaccinated people in triage”
-Dec. 6

“Unvaccinated people rejected by emergency – hospital apologizes”
– Dec. 7

Switzerland.

https://www.20min.ch/story/mediziner-wollen-ungeimpfte-bei-triage-fuer-intensivstationen-benachteiligen-910694456806

https://www.20min.ch/story/ungeimpfte-von-notfall-abgewiesen-spital-entschuldigt-sich-117493590510

—————-

Cold.

#17 JSS on 12.08.21 at 2:59 pm

“The Tiff has spoken.”

Tiff. I really like that name. Now imagine if his name was Biff. He’d probably be a more powerful CB boss. Smashing heads wherever he went

#18 Sail Away on 12.08.21 at 3:03 pm

#6 Ponzius Pilatus on 12.08.21 at 2:26 pm
#121 Sail Away on 12.08.21 at 11:40 am

I drive a Tesla because it’s fast and cool, not to save the world.

——–

Question Sailo.
Thought you drive a Tesla to save on accommodation costs?

——–

No! That was just one more benefit discovered along the way. Queue up Holiday Fireplace with soft music, settle into the queen bed, and gently drift off into dreamland… knowing that when you wake up, you’ll still own both the car and TSLA shares.

An embarrassment of riches.

#19 James on 12.08.21 at 3:04 pm

#6 Ponzius Pilatus on 12.08.21 at 2:26 pm

#121 Sail Away on 12.08.21 at 11:40 am
Hey, how are the folks who jumped on the renewables bandwagon about a year ago doing?
Just a quick peek at Brookfield Renewables shows -43% YTD. And that in a blisteringly successful year for most other stocks. Oh my.
Nonplused seems to have nailed it.
I drive a Tesla because it’s fast and cool, not to save the world.
————————
Not an expert on renewables.
But as a long time Accountant doing due diligence analysis, I like to chirp in.
First of all, renewables are not tech stocks with their crazy valuations.
Second, it would appear that the heavy front end fixed costs associated with renewable investments are dragging down early returns, with a later break even point.
I would assume that the first oil pumps also took a while to generate profits.
Analogy:
Installing a sun roof, will cost you a bundle up-front, but in the long run, after the break even point, you’re home free.
Question Sailo.
Thought you drive a Tesla to save on accommodation costs?
__________________________________________
Tesla huh, ugly as sin not cool. When a Tesla goes by I look and say there is no style or coolness to that vehicle and no wonderful purr. A Porsche or Corvette now your talking cool.

#20 mj on 12.08.21 at 3:05 pm

I believe higher rates are needed. However, too much too fast is a big mistake. Anything over 4 increases will cause the housing market to slow. People will feel less rich, and have less to spend. It could put us in a recession. The government needs to stop the gushing of spending first. They are causing the inflation. once the economy can stand on its own, then the CB can raise rates as much as they want

#21 Shawn Allen on 12.08.21 at 3:07 pm

VBAL has too much in bonds?

True it’s 40% bonds and the average term is about 10 years. So not good in a rising rate environment.

To fix that try 60% VEQT (exactly same as VBAL but just the equity part).

The other 40% depends on your risk tolerance but you could go something like:

10% VCS for short term bonds
10% CPD for preferred shares
10% VRE for REIT exposure
10% VDY for high dividends

I don’t claim this to be ideal but I don’t think it is too awfully far off the Greater Fool version though certainly not an exact match

But keep in mind the bottom two (VRE and VDY) are equities so if more nervous go 20% VCS and 20% CPD or throw a bit of cash or (god forbid) GICs into the mix.

#22 Dolce Vita on 12.08.21 at 3:08 pm

Google Translate usually pretty good as I do my normal AM perusal of Europa news, well except for this AM.

Google thinks that Sweden is mandating MOUTHGUARDS “in public transport, homework and abolished qualifying day”. [not a clue what the last one would have been is Swedish]

“Those who travel by public transport must use mouth guards in the event of congestion.”

I get that Sweden is a hockey nation, but mouthguards in bus?

https://www.aftonbladet.se/nyheter/a/66y8X0/nya-raden–det-har-galler-fran-och-med-i-dag

[Somebody that understands Svensk please me let me know esp. about “abolished qualifying day”]

…told you so.

“In Spain, Covid hospital admissions jump 32% in a week, as incidence hits 290 cases per 100,000” *

https://english.elpais.com/society/2021-12-08/in-spain-covid-hospital-admissions-jump-32-in-a-week-as-incidence-hits-290-cases-per-100000.html

Took them awhile to come clean.

In Spain’s defense, at least she can count waves unlike the rest of Europa (El Pais this AM CET).

“School quarantines for Covid rise slightly as Spain battles sixth coronavirus wave”

———————-

* Italia starting to feel like the Lone Ranger, Cases/100K this AM CET:

Italia 173
France 445
Switzerland 720
Austria 570
Slovenia 598

Sweden a bit lower than Italia, then again, Sweden can’t count like Canada **:

https://i.imgur.com/g6iJKuP.png

** Above image of tests/1000 people about when the “O” word hit the World’s MSM.

Country strategies since then:

USA, quick lower testing…Mr. Market is watching…ooops, too late.
Japan, South Africa, do what we do best, don’t test.
Germany, Sweden, Spain, stop reporting tests.
UK, Italia, business as usual.
France, Oh là là !
Denmark, off scale…way, way North off scale.
CANADA, screw it, we know we suck at testing and will dutifully report our mediocrity on a daily basis. So there.

I’m good with that. At least Canada is HONEST.

[throw darts at a completed Sudoku board and you’ll be about as accurate]

#23 Blacksheep on 12.08.21 at 3:09 pm

The UK’s ‘Evening Standard’ said this today:

“Up to 300,000 people facing heart-related illnesses due to post-pandemic stress disorder, warn physicians”

https://www.standard.co.uk/news/health/post-pandemic-stress-disorder-heart-conditions-covid-london-physicians-b969436.html
————————-
Riiiight, let the excuses begin….

#24 catnogood on 12.08.21 at 3:11 pm

Any recommendations for a preferred share ETF, Garth?

#25 Mr Fox on 12.08.21 at 3:14 pm

Do you consider the “rule of 90” still a good idea?

Yep. – Garth

#26 Billy Buoy on 12.08.21 at 3:16 pm

# 7 Caffeine Monkey

Canadians have an appealing choice: would you rather be punched in the face by inflation or kicked in the groin by rising interest rates?

——————————————————————–

Perfect.

So……..The CB’s stupidly positioned themselves in a no win situation.

Raise rates, pop bubbles and let those in power deal with the carnage. Remember the banks are 100% safe. OR

Let inflation run wild….hurting 80% of the population.

The real question is, those in power want to stay in power and they are controlled by the banks…

So, rates will rise into USA Mid term elections ever so gradually say .75 at most, hopefully coinciding with supply bottlenecks easing inflation slightly for the purpose of The Democrats winning, allowing the party to pillage what they can before they are gone in 2024. No Joe won’t be running for a 2nd term. And remember most people don’t own stocks or have any retirement $$$ so a stock market drop won’t affect them much at all.

Once in, the pain in the stock market will be resolved by seeing rates lower again even though supply chain issues are resolved but oil prices remain high and continue to move even higher.

Those without will continue to suffer as in no way will wages EVER keep up with the inflation that is coming due to oil prices and the debt bubble will keep expanding with banks continuing to smile with glee raking in BILLIONS.

LONG OIL and BANKS forever.

#27 OmniCon on 12.08.21 at 3:19 pm

OMRICON..still a con

#28 ElGatoNerodeYVR on 12.08.21 at 3:21 pm

#5 TurnerNation on 12.08.21 at 2:20 pm
What is really going on in Ontariowe – where the province is to remain under Economic Lockdowns, capacity restrictions and CV rules – designed to cripple small business? ‘Cause the science shows…small business capacity makes people sick!
=========
I will start by saying that you should keep writing, we need to hear different opinions, like it or not.
Now to address your point ,back to my favorite past subject, retail & food service SMB’s . Exceptions do exist but in my personal experience majority of them could care less about worker safety in general,talking here during good times.
I can only estimate that now when they are in desperate survival mode due to health restrictions imposed and they simply do not have the physical space to enforce compliance with social distancing rules and workers willing to work for the minimum wage while vaccinated, safety is the last thing on any retail and food service SMB’s mind. Hence chances are entering any of these businesses would cause high risk without stringent regulations.
I would also say that they should be compensated based on previous years ( 10 years?) Cashflow and profitability so they don’t go under.

#29 IHCTD9 on 12.08.21 at 3:28 pm

#14 chalkie on 12.08.21 at 2:42 pm

… Joey sits happily on his porch & keeps enjoying his favorite free drink in the big smoke on his small pension.
___

Joey has life all figured out :). Sometimes I envision myself retired and motoring off to Lake O in a nice new boat for a morning of fishing. Other times I can’t see how a comfy lawn chair on the riverbank under a nice tree wouldn’t be even better. Bobber and a crayfish, cooler containing “favourite drink”, and a couple good sandwiches. That sounds hard to beat.

#30 AM in MN on 12.08.21 at 3:31 pm

#111 Diamond Dog on 12.08.21 at 8:40 am
#100 AM in MN on 12.07.21 at 11:06 pm

The fatal flaw in your argument is that you believe for some reason that the U.S. government through the Fed, treasury and justice don’t have the right, power or authority to shut down crypto currencies in their entirety. They do.

—————————————————-

They do not!

Look at what China did. A bit of a price bump, but nothing to knock off the trend line.

They could do it to Americans who register all of their wealth with the Govt. (most people, not all).

The US Govt. would need to shut down the global internet, which it can’t do and would cost more economic harm than letting Bitcoin ride.

You need to dig deeper into the underlying algorithms and control structure. There is a reason why the SEC treats Bitcoin (BTC) as an asset but the rest of the crypto space as securities, which are much easier to regulate.

Given the ownership and the size of some of the exchanges, it would be hard now to shut down due to the “takings” clause of the US Constitution, which gets interpreted by…. (Thanks Trump!)

Colombia’s biggest bank just opened BTC to trading…. these types of press releases come out weekly.

The $US will not collapse in our lifetime, but it’s value can get seriously diminished, especially for the demographic reasons stated in my last post.

A 10% BTC allotment makes sense in a B/D portfolio. As I mentioned before, stay away from other cryptos unless you know what you’re doing and have the risk for securities.

#31 Caffeine Monkey on 12.08.21 at 3:33 pm

#6 Ponzius Pilatus
Hey, how are the folks who jumped on the renewables bandwagon about a year ago doing?

There’s certainly a difference between renewable energy in the general sense, which will absolutely supplant a large amount of fossil fuels, versus renewable energy as an investment sector.

I’m hugely pro-renewables but would never touch any renewable ETFs. Too many startups, too much risk. If one really wants to skew their portfolio that way, I would suggest attacking it from the other angle: a fossil fuel free fund such as SPYX. This gives you exposure to the long term trend of fossil fuels being toast while giving you the stability of the broader market.

#32 AM in MN on 12.08.21 at 3:44 pm

#124 Faron on 12.08.21 at 12:08 pm
#100 AM in MN on 12.07.21 at 11:06 pm

Do I need to repeat for you “manipulated sweeps”? The implication is that Bitcoin is a ponzi and when the ponzi folds, your “trend” wont be worth the bits it was printed on no matter how much foo foo justification has been agreed upon by coiners like yourself.

——————————————————–

If someone is worried about their “asset” being part of a ponzi scheme, there’s always this for a liquidity hedge;

– Lending firm Nexo has partnered with institutional custodian Fidelity to bring professional bitcoin products to market, the company said in a statement Tuesday. The lender will leverage Fidelity’s enterprise-grade infrastructure to expand institutional access to its prime brokerage platform.

“As a first step, the collaboration with Fidelity Digital Assets will expand Nexo’s ability to service and enhance its growing portfolio of assets under management and will provide an additional custody layer to Nexo’s military-grade security infrastructure,” per the statement.

Nexo said the partnership would enable it to explore the development of new products for institutional investors, including tri-party structures for bitcoin-backed loans. Wall Street banks are also reportedly exploring ways to do institutional cash loans with bitcoin as collateral by emulating tri-party agreements. The model, popular in traditional finance, leverages a third-party agent to ensure the proper delivery of cash and the underlying assets to each party as per the agreement terms….

And on and on it goes, week by week, folks with some very big money at stake are understanding what can be done with it, its safety and security and ease of use.

It is starting to get accumulated as a reserve asset by those that need to hold USD as a reserve asset. The trend line is clear, but won’t move in a straight line.

Keep your head in the sand if you wish.

#33 westcdn on 12.08.21 at 3:52 pm

One of my favorite commercials – cat herding. https://www.bing.com/videos/search?q=cat+hearders&docid=608039980566146962&mid=BD960549657A057640E7BD960549657A057640E7&view=detail&FORM=VIRE

#34 VladTor on 12.08.21 at 3:52 pm

Garth…She’s busy oiling my abs. – Garth
***********

OK, Later! Remind to her, please.

#35 VladTor on 12.08.21 at 4:00 pm

…The Bank of Canada’s key interest rate remains unchanged going into the end of 2021

*******
Two reasons for that.
1. US FED not increasing rate.
2. They are afraid of ruining Christmas for people.

#36 Bungalow Bill on 12.08.21 at 4:04 pm

Happiness is a warm gun….

… not so much, on this sad day.

Great to see the lads (especially John & George) again though. Watching Yoko knit is a hoot too.

Super cute dog.

#37 Pandemic Is Over on 12.08.21 at 4:05 pm

I personally think that the fixed income portion of the portfolio, instead of being a fixed percentage (say 40%), should rather be the size of a generous “emergency fund”. That means, be equal to 12-24 months of living expenses.
This way, stock market recession is treated just as another “financial emergency” (temporary by its nature), which is now properly cushioned. Point here is, the thickness of the cushion should depend on risk tolerance – but in absolute, not relative amount.

#38 Dolce Vita on 12.08.21 at 4:11 pm

#19 James

Corvette = Batmobile (and I used to own a Corvette when they looked like a Corvette, 650 bhp).

Porsche = German design. Need I say more (if you want a car to look, drive and sound like a Panzer, this is the firm for you).

You want cool, come to Italia James.

Lamborghini, Ferrari, Maserati, etc. makes your blood boil for car lust just looking at them, let alone driving one (like I have).

————-

Tesla needs to hire an Italian design firm like De Tomaso or Pininfarina.

If Tesla charges premium $ for their vehicles, start making them look premium. About the styling chops of a 80’s Dodge Caravan.

#39 Billy Buoy on 12.08.21 at 4:11 pm

What no government will tell you….and why I am LONG OIL and even the tar sands….

https://ourfiniteworld.com/2021/12/03/is-it-possible-that-the-world-is-approaching-end-times/

Anyone disagree?

#40 Trudeau’s Magic Money Machine on 12.08.21 at 4:16 pm

Garth,

What do you think of the short bond etf CSD.TO ?

Seems like a good way to achieve what you recommend.

Thanks.

#41 kommykim on 12.08.21 at 4:18 pm

RE:#1 Millennial 1%er on 12.08.21 at 1:45 pm
VBAL? VGRO even? 100% equity ETF son. I don’t even need the money
whatever, i’m 20 something.

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

Just buy something like VEQT and pair it with your own fixed income ideas, like preferreds, short bonds, cash, etc… 60/40, 70/30, 80/20, etc, the choice is yours. Rebalance as necessary.

#42 Billy Buoy on 12.08.21 at 4:20 pm

#31 Caffeine Monkey

Fossil fuels will be around a LOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOONG time before anything takes their place….the world runs on it, wars are fought over it ,the cost of getting it out of the ground is only going UP and the planet isn’t producing more of it…

RENEWABLES are a great idea but do little to take the place of oil….sad but true.

The only things certain in life are:
1. We are all going to die. Get living.
2. We will always pay taxes. Keep paying.
3. The world runs on OIL. Pray we out live it.

#43 tbone on 12.08.21 at 4:30 pm

# 24 catnogood

ZPR gets mentioned occasionally

MER 0.50
Dividend yield 4.7 %

#44 Grandv!ew on 12.08.21 at 4:37 pm

Seven Billion dollars to be spent and not one person can actually say where is the money coming from? Or they are scared of admitting the origin of the money to be spent.

In case anyone had any doubts that Trudeau and Liberals balkanized Canada into oblivion I hope you give your head a shake and think of the consequences for the future of our land.

https://twitter.com/PierrePoilievre/status/1468594502080237568

#45 Sail Away on 12.08.21 at 4:42 pm

#29 IHCTD9 on 12.08.21 at 3:28 pm
#14 chalkie on 12.08.21 at 2:42 pm

… Joey sits happily on his porch & keeps enjoying his favorite free drink in the big smoke on his small pension.

——-

Joey has life all figured out :). Sometimes I envision myself retired and motoring off to Lake O in a nice new boat for a morning of fishing. Other times I can’t see how a comfy lawn chair on the riverbank under a nice tree wouldn’t be even better. Bobber and a crayfish, cooler containing “favourite drink”, and a couple good sandwiches. That sounds hard to beat.

——-

Luckily, your choice can always be ‘both, thank you’.

That said, hiring a charter is a great way to way to go. You get top notch equipment operated by an expert who knows exactly what works in exactly the right areas, then he cleans your fish and you drive home with fish and memories and no equipment to clean, lube, repair or maintain. Then if you love it so much you want to fish all the time, buy your own gear and cut the learning curve by copying everything the charter did.

#46 Drinking on 12.08.21 at 4:45 pm

Thank God you got rid of another useless Feline pick and chose a cutie like Silvie; I was starting to worry about you Garth.

Good article today although I am surprised that they did not raise it considering on how out of hand inflation is getting.

Dorothy oiling your abbs, lol, only in your dreams Garth!

#47 Gb on 12.08.21 at 4:53 pm

It is my understanding that VBAL does adjust its positions? In other words the 40% portion could be adjusted and perhaps end up with preferreds?

#48 I'mshort_corpdebt on 12.08.21 at 4:58 pm

DELETED

#49 Felix on 12.08.21 at 5:02 pm

This picture is acceptable. In accordance with the terms of our cease and desist order, this blog can still post pictures of canines that look like cats on a regular basis, as well as increasing cat pictures by at least 500%.

#50 Penny Henny on 12.08.21 at 5:15 pm

#38 Dolce Vita on 12.08.21 at 4:11 pm
#19 James

Corvette = Batmobile (and I used to own a Corvette when they looked like a Corvette, 650 bhp).
/////////////

Dolce owned a Vette. Ha, that’s a laugh.
650bhp, sure why not Dolce it’s your fantasy.
I’m thinking that you were more of a Dodge Spirit type of guy.
Vette, ha ha. What would your momma say?

#51 Shawn Allen on 12.08.21 at 5:17 pm

Follow the Money

#44 Grandv!ew on 12.08.21 at 4:37 pm

Seven Billion dollars to be spent and not one person can actually say where is the money coming from? Or they are scared of admitting the origin of the money to be spent.

**************************
When a government is already running a deficit it is clear that every incremental dollar spent is a borrowed dollar. Well, unless the new spending comes with a matching new tax source.

#52 Sail Away on 12.08.21 at 5:19 pm

Here’s an excellent South Dakota 38 acre property with custom log home. Who would rather live in a city than here?:

https://www.landandfarm.com/property/Log_Home_with_Hunting_Land_For_Sale_in_Yankton_SD-14963513/

#53 Caffeine Monkey on 12.08.21 at 5:19 pm

I agree this may be true in Canada generally and Alberta specifically, which is a petrostate that will be among the last in the world to transition away. Even Saudi Arabia is making significant investments in renewables.

I’ll point you at Bloomberg New Energy Finance, which are hardly a bunch of tree hugging hippies. They project aggressive growth for solar, wind, and grid-scale battery storage.

#54 Shawn Allen on 12.08.21 at 5:27 pm

VBAL and preferred?

#47 Gb on 12.08.21 at 4:53 pm
It is my understanding that VBAL does adjust its positions? In other words the 40% portion could be adjusted and perhaps end up with preferreds?

**************************
Maybe in theory they could change it but to date VBAL bond portion is in Canadian aggregate bond ETF 23% , U.S. aggregate bond ETF (CAD hedged) 9% and global ex-U.S. aggregate bond ETF (CAD hedged) 7%

And in the 60% equity portion none of that includes prefs.

https://www.vanguard.ca/en/investor/products/products-group/etfs/VBAL

See the similar comments from KommyKim and myself above, that is go VEQT and choose your own fixed income.

#55 I'mshort_corpdebt on 12.08.21 at 5:28 pm

-DELETED

ah-ha, was it the play on words that triggered you this time? I’m bilingual and it does literally translate to that.

Or was it the obvious that made you not want to go there?

Lewd comments are deleted. – Garth

#56 NOSTRADAMUS on 12.08.21 at 5:30 pm

BE PATIENT, GRASSHOPPER.
Quote, : I don’t believe in much, but I do believe in reversion to the mean.” James Clarke, successful stock trader. Keep your powder dry, for those with cash, the future will be well worth the wait. Amen Brother.

#57 Wrk.dover on 12.08.21 at 5:33 pm

If you use renewables, you will know what renewables are and what they do. And then know of the best products out there.

Enphase; $5.08 Jan 018, 29.29 Jan 019, one year range right now, $108-282.

I have mentioned my glee in owning their products here before.

#58 Drew on 12.08.21 at 5:36 pm

Sounds like we need a Garth Balanced & Diversified ETF

#59 Faron on 12.08.21 at 5:44 pm

#38 Dolce Vita on 12.08.21 at 4:11 pm

Dolce, I think Tesla’s designs are perfect. Any design should synergize with the values and tastes of the target audience. Thus, their design is bang-on in the same way that the Hummer H2’s design was — shouts loudly and clearly that a person of impeccably poor taste and inflated self-importance with a side of karen-ism is on the lam. Further, the recognizability helps the rest of us steer clear in case autopilot decides to claim a few more lives. You should be thankful. I am.

#60 IHCTD9 on 12.08.21 at 6:01 pm

#39 Billy Buoy on 12.08.21 at 4:11 pm
What no government will tell you….and why I am LONG OIL and even the tar sands….

https://ourfiniteworld.com/2021/12/03/is-it-possible-that-the-world-is-approaching-end-times/

Anyone disagree?
———-

What I expect is the continuation of all of human history cumulating in the conquering of all the energy resources available to us on this planet. If we make it to that point, we will all be unified in a common dilemma- getting off this planet. If we can do that, a new history begins. If we can’t, then we are toast.

Until then, I expect a moderating of wealth and living standard on a global scale. The West will decline, and the East will improve. Poverty will slowly decline. Costs of living will rise globally alongside more expensive energy and labour costs. People will move and mix with greater and greater ease, International Borders will fade. Population growth will slow as world wide prosperity levels increase.

It will be the level of human resistance to these changes that will see us succeed or fail.

#61 Ponzius Pilatus on 12.08.21 at 6:09 pm

#38 Dolce Vita on 12.08.21 at 4:11 pm
#19 James

Corvette = Batmobile (and I used to own a Corvette when they looked like a Corvette, 650 bhp).

Porsche = German design. Need I say more (if you want a car to look, drive and sound like a Panzer, this is the firm for you).

You want cool, come to Italia James.

Lamborghini, Ferrari, Maserati, etc. makes your blood boil for car lust just looking at them, let alone driving one (like I have).

————-
Dolce, how old are you?
Somehow, I can picture you racing other kids with Tonka cars in the sand box.
Calling a Porsche a tank?
How about talking about the shoe box with wheels called FIAT?
And stop pretending to be Italiano.

#62 Bogled on 12.08.21 at 6:19 pm

#47 GB

VBAL will rebalance it’s existing components. It is what we once refered to as a “fund of funds” . You are highly unlikely to see preferreds added. That would become a different fund Maintaining it’s target proportions means you don’t have to.
All similar XBAL, ZBAL.

#63 Kitkat on 12.08.21 at 6:43 pm

The rational for Bitcoin legitimacy was always that the supply is controlled, unlike currencies.

There are currently 1583+ companies churning out tulip tokens.

#64 Nonplused on 12.08.21 at 6:51 pm

Let’s put it to music!

https://www.youtube.com/watch?v=rx5mE9XPcWw&t=133s

#65 Idiocy on 12.08.21 at 6:51 pm

to comment 38 , Dolce Vita

A little too much wine tonight chappy ?
Your comments are generally ill informed and frankly silly – you do realize that don’t you ?
And you were a teacher ?
In that case then maybe you don’t.

#66 Sail Away on 12.08.21 at 6:57 pm

#59 Faron on 12.08.21 at 5:44 pm
#38 Dolce Vita on 12.08.21 at 4:11 pm

Dolce, I think Tesla’s designs are perfect. Any design should synergize with the values and tastes of the target audience. Thus, their design is bang-on in the same way that the Hummer H2’s design was — shouts loudly and clearly that a person of impeccably poor taste and inflated self-importance with a side of karen-ism is on the lam. Further, the recognizability helps the rest of us steer clear in case autopilot decides to claim a few more lives. You should be thankful. I am.

——–

Sure. Or people just like to drive them. Teslas don’t shout by any means. If anything, they are a fairly inconspicuous vehicle.

But… as with everything, the obsessively intolerant will get all judgey. It’s to be expected from the disaffected. Part and parcel of their condition… Sad.

#67 I'mshort_corpdebt on 12.08.21 at 6:59 pm

– No lewd comments

I’d give the MP of Carlton better accolades if he’d just pickup a guitar or saxophone and performed Fine State of Affairs in parliament!

#68 espressobob on 12.08.21 at 7:05 pm

A global all cap by market cap position in equity is all anyone needs to own.

The safe stuff is risky compared to cash.

#69 crowdedelevatorfartz on 12.08.21 at 7:12 pm

Ponzies Play pen

“My friend lives in one of those new high rises in China Town.”

+++

You should pop down and vist you chum and after dinner .
Go for a walk one block north of Pender to Hastings.
Then turn east or west and stroll a few blocks.
View the alleyways full of zombies
Just take your time embracing the misery and stench and then back to the concrete Condo that has “doubled in value” ( as if THATS a major bragging point in Vancouver these days, and FYI….It hasn’t “doubled” until he sells it.)
Just make sure you latch the lobby door and don’t leave anything of value in your car while you visit.
Those legions of homeless drug addicts outside the lobby door are desperate for the next pawnshop worthy item to trade for anything to get high..

#70 under the radar on 12.08.21 at 7:20 pm

Porsche – have owned a couple including the turbo. they ride rough in the city and like to burn oil. Not comfortable as an everyday ride and a dime a dozen in 416
Corvette – have had many including a 2009 ZR1 – That car was a monster but interiors were cheap GM plastic . last one was a 2016 Z06 – Nice but still cheap interiors. they have become old man cars who wear gold chains and can’t see their feet.
F- car , tempted , but service is horrendously expensive , leather likes to delaminate and shrink, their dealer network sucks.

#71 Diamond Dog on 12.08.21 at 7:38 pm

#30 AM in MN on 12.08.21 at 3:31 pm

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

The link above is a first congressional hearing today to hear reasons from the industry justifying it’s existence and Crypto’s ideas on how to proceed with regulations or pitch not to. It reminded me of an episode from the TV series “Start up” where they were told govy officials would speak in platitudes and analogies to try to keep themselves from sounding like they didn’t know anything (good series, ahead of it’s time).

China successfully made Crypto currencies illegal within their borders. It’s absurd to think that the world’s #1 economy doesn’t have the power and legal standing to do the same world wide if it wanted to, especially since most Crypto corps are incorporated in the U.S., no internet shut downs required. Or, that CB’s around the world looking to introduce their own digital currencies will at some point see Crypto as a competitive threat and want it gone.

https://www.coinbase.com/

If we scroll down and look at the $ 327 billion quarterly volume traded, you see that? The SEC has allowed securities traded to be included in that number. The Bitcoin circulating annualized is around a half a trillion, still manageable for an exit plan if the U.S. government is at all serious cracking down on black market trade (drugs, weapons etc.).

Easy method or excuse off the top of my head is it’s role in sponsored terrorism or the illegal drug trade on the dark web and beyond and it’s gone if the U.S. government really wants it gone.

The rest of what you have to say, I’m with Buffet on this one. The most successful investor on the planet isn’t big on Crypto because he’s old and doesn’t get it… he’s not big on Crypto because he does get it. The entire industry is a bad meme (imitation):

https://www.youtube.com/watch?v=cNh3Wod7JIU

I will say, Warren catches himself in the sense that Crypto does produce value in something in the form of an unregulated currency which he notes attracts charlatans and criminals etc. but it’s all the wrong kind of value and that’s his point. Otherwise, it really is a non productive asset that offers nothing of value other than what it offers intrinsically as an unregulated currency and that’s the point.

Put that in the backdrop of Crypto as a currency the U.S. government knowingly needs to regulate. The one thing that gives Crypto it’s inherent value (non regulation) will at some point be stripped away in which case investors are looking for a greater fool to buy an asset like say, an uninhabitable apartment from a ghost city in China during a housing collapse.

Sure, you could go with the idea of buying Bitcoin as a hedge against when tshtf on Fiat currency right? Like gold but a more modern form of insurance. Chamath thinks so:

https://www.youtube.com/watch?v=RAvYvyj37UU

The problem there is a predictable run on Crypto if Fiat’s got in trouble. What, crypto’s explode instead in trade and value? As I said before, Crypto currencies will not be allowed to replace Fiat or even meaningfully compete at any time.

Insurance companies thrive on the idea that their insurance holders won’t all put a claim in at once but when it happens, they go broke just like any run on a bank. Currency disruptions aren’t the only reason why one would see a run on Crypto and like all Ponzi’s, it will end badly. To quote Buffet, “if there was some way to put a 5 year put on Crypto”.

#72 Sail Away on 12.08.21 at 7:42 pm

#60 IHCTD9 on 12.08.21 at 6:01 pm
#39 Billy Buoy on 12.08.21 at 4:11 pm

What no government will tell you….and why I am LONG OIL and even the tar sands….

https://ourfiniteworld.com/2021/12/03/is-it-possible-that-the-world-is-approaching-end-times/

Anyone disagree?

——-

What I expect is the continuation of all of human history cumulating in the conquering of all the energy resources available to us on this planet. If we make it to that point, we will all be unified in a common dilemma- getting off this planet. If we can do that, a new history begins. If we can’t, then we are toast.

Until then, I expect a moderating of wealth and living standard on a global scale. The West will decline, and the East will improve. Poverty will slowly decline. Costs of living will rise globally alongside more expensive energy and labour costs. People will move and mix with greater and greater ease, International Borders will fade. Population growth will slow as world wide prosperity levels increase.

It will be the level of human resistance to these changes that will see us succeed or fail.

——-

Oh, no way will a new planet be needed. Earth is perfect.

Looking at it from a biological perspective: every environment has a carrying capacity, and when that’s exceeded, life adjust accordingly. There are thousands and thousands of island ecosystems with terrestrial plants and animals that have long and detailed history of growth, collapse, evolution, uneasy stasis, extinction, change, etc.

For some strange reason, with more people on earth than ever before, human life is somehow deemed more important now than ever before, especially in Western society. Strange.

Anyway, that’s an aside. My personal philosophy is to use moderation in consuming real stuff, and gathering lots and lots of the fake stuff like money.

People don’t play well together, since there is always disparity or a belief of disparity. Two things we are great at doing is forming tribes and waging war. How these instincts will fare with exponential growth is yet to be seen.

That said, my life is very satisfying.

#73 Nonplused on 12.08.21 at 7:42 pm

#53 Caffeine Monkey on 12.08.21 at 5:19 pm
I agree this may be true in Canada generally and Alberta specifically, which is a petrostate that will be among the last in the world to transition away. Even Saudi Arabia is making significant investments in renewables.

I’ll point you at Bloomberg New Energy Finance, which are hardly a bunch of tree hugging hippies. They project aggressive growth for solar, wind, and grid-scale battery storage.

—————————————-

Where does everyone get this idea that Alberta hasn’t dabbled in renewables? If you drive from Lethbridge to the Crowsnet Pass you aren’t ever out of sight of a wind farm. And those are just the ones you can see from the highway.

Alberta has also made a big move away from coal to natural gas for electricity generation. Up to a 50% reduction in CO2 emissions right there. And the lights stay on when it isn’t windy.

But there is only so much we can do. Even assuming there were still lots of good sites for more wind, we can’t export much of it due to a lack of transmission lines. The wind is much more landlocked than the oil and gas is.

#74 Ponzius Pilatus on 12.08.21 at 8:01 pm

#52 Sail Away on 12.08.21 at 5:19 pm
Here’s an excellent South Dakota 38 acre property with custom log home. Who would rather live in a city than here?:
————
I’d love to live on a property like that.
Alas, it’s in crazy Trumpoland.
So, not for me.

#75 Nonplused on 12.08.21 at 8:05 pm

#121 Sail Away on 12.08.21 at 11:40 am

I drive a Tesla because it’s fast and cool, not to save the world.

———————————–

Nothing wrong with a Tesla per se, so long as you realize you are buying a car not a climate solution.

This might seem like a sort of a remotely if at all related comparison, but I never did see anyone advertise cordless tools as a climate solution. Do they use less electricity? No. Do they last longer before they head for recycling or the landfill? Not by half. But they sure are handy.

#76 Griffith on 12.08.21 at 8:23 pm

Here we go, let’s see how Garth’s implied portfolio (he will never reveal the details, only say it beats yours) compares to some one-fund ETF’s:

Portfolio 1: VBAL
Portfolio 2: VCN (20%), VUN (15%), XEF (5%), XEC (10%), ZRE (10%), ZPR (10%), XRB (10%), VAB (20%)
Portfolio 3: VBAL (50%), VGRO (50%) (A 70/30 portfolio)

If you put $100K into each fund in January 2019, rebalancing monthly, here’s what you’d have today:

Portfolio 1: $136 981
Portfolio 2: $138 258
Portfolio 3: $141 704

So, Garth’s implied portfolio beat VBAL over this period.

However, Garth’s portfolio isn’t really a 60/40 portfolio. Preferred shares (ZPR) are not considered “safe” stuff by most of the investing community. Preferred shares are hybrid securities, sharing characteristics of common shares and corporate bonds. Many investors also consider them alternative investments.

So Garth’s portfolio of 60/40 (but really, up to perhaps 70/30 ish )performs better than a 60/40 portfolio (VBAL). But not as good as a 70/30 portfolio (50% VBAL, 50% VGRO). As one would expect, due to the hybrid nature of the preferred shares, it doesn’t quite meet the returns of a 70/30 portfolio.

Most interestingly, in the covid plunge, which portfolio was highest in the crash?

Portfolio 1: $103 000
Portfolio 2: $98 046
Portfolio 3: $102 184

Portfolios all tested at portfoliovisualizer.com

None of those are ‘my’ portfolio, and your characterization of preferreds is wrong, – Garth

#77 TurnerNation on 12.08.21 at 8:34 pm

#28 ElGatoNerodeYVR on 12.08.21 at 3:21 pm

This week somebody in the Commercial property industry told me, the spectre is raised that small business for sale may be bargined downward in price, with the looming prospect of yet more Economic Lockdowns. This is for real .

—–
See this global WW3 – kicked off March 2020 – is not meant to be won. No. We are told we’re fighting the omnipresent yet invisible enemies: Climate Change, Covid, Inflation. I always said this War, this time is for our MINDS.

—- War on Small business:
.Small NYC business owners slam De Blasio for ‘unbelievable’ last-minute COVID vaccine mandate for ALL private sector workers: ‘We are going to lose employees’ (dailymail.co.uk)

— UK – every Former First World Country is getting the reset. Yep CV can do this. The plan even has numbered/lettered stages don’t you know.

.UK Government looks at introducing ‘ #PlanB’ restrictions to curb spread of #OmicronVariant.
According to @FinancialTimes the #UK government is looking at introducing further #restrictions, which would include #vaccine passports for large venues and guidelines to #WorkFromHome.

.Covid: New Plan B rules on working from home and masks announced for England (bbc.com)

.Korea puts reopening plans into reverse as cases soar, omicron spreads(koreaherald.com)

#78 When Will They Raise Rates? on 12.08.21 at 8:36 pm

#23 Blacksheep on 12.08.21 at 3:09 pm

The UK’s ‘Evening Standard’ said this today:

“Up to 300,000 people facing heart-related illnesses due to post-pandemic stress disorder, warn physicians”

https://www.standard.co.uk/news/health/post-pandemic-stress-disorder-heart-conditions-covid-london-physicians-b969436.html
————————-
Riiiight, let the excuses begin…

——————————

Yup, and it affects young males the most. It would explain why pro soccer players are suddenly dropping dead all over the world… 66X the normal annual rate…

They also have a new marketing campaign letting people know that children get heart attacks too…

You can’t make this stuff up.

In other news, the EU is now calling for the abolishment of the Nuremburg code.

Are people really so dumb they can’t see what’s happening?

#79 Cici on 12.08.21 at 8:44 pm

#8 Linda

Totally agree with you on that call. The CB promising not to up rates before at least halfway into next year seems irresponsible, if not dangerous.

Maybe they read Summertime’s post last night and thought his idea to keep rates low and drop them into negative territory if at some point more SHTF was a good idea. If so, did they forget that after accounting for inflation, we’re already in a negative rate situation?

If this keeps up, which is looking more and more likely, I’m expecting currency devaluation, negative interest rates and a major bank run in Kanukistan. Cash will not be king and neither will anything else linked to our downgraded economy.

Now, where to run and how fast can we get there?

#80 cramar on 12.08.21 at 9:05 pm

#25 Mr Fox on 12.08.21 at 3:14 pm
Do you consider the “rule of 90” still a good idea?

Yep. – Garth

————–

Doesn’t work well when you get older. Goes out of whack the older you get. Creeps up due to rising value of RE when it should be a decreasing part of your net worth.

#81 Garth's Son Drake on 12.08.21 at 9:14 pm

City of Vancouver green lights a 6.35% hike in property tax for 2022.

#82 DON on 12.08.21 at 9:14 pm

#59 Faron on 12.08.21 at 5:44 pm
#38 Dolce Vita on 12.08.21 at 4:11 pm

Dolce, I think Tesla’s designs are perfect. Any design should synergize with the values and tastes of the target audience. Thus, their design is bang-on in the same way that the Hummer H2’s design was — shouts loudly and clearly that a person of impeccably poor taste and inflated self-importance with a side of karen-ism is on the lam. Further, the recognizability helps the rest of us steer clear in case autopilot decides to claim a few more lives. You should be thankful. I am.

@@@@@@@

Ha ha ha…I had the same thought. Not really an eye catching body design. When Chev comes out with an electric camaro or dodge with a charger or ford with an electric Ford 150 grocery getter it will be a different story rememeber Saturn…ugly vehicles. It is not like Telsa is doing something no other company can do. How does Telsa make most of its revenue.

#83 Sail Away on 12.08.21 at 9:21 pm

#74 Ponzius Pilatus on 12.08.21 at 8:01 pm
#52 Sail Away on 12.08.21 at 5:19 pm

Here’s an excellent South Dakota 38 acre property with custom log home. Who would rather live in a city than here?:

——–

I’d love to live on a property like that.
Alas, it’s in crazy

——–

You would be welcomed as equally unimportant as everyone else. Any intolerance would completely of your own making. Again, sad.

#84 Ponzius Pilatus on 12.08.21 at 10:01 pm

#75 Nonplused on 12.08.21 at 8:05 pm
#121 Sail Away on 12.08.21 at 11:40 am

I drive a Tesla because it’s fast and cool, not to save the world.

———————————–

Nothing wrong with a Tesla per se, so long as you realize you are buying a car not a climate solution.
———-
Gotta agree to a point.
Electric is part of the solution.
The other is smaller car, car pooling and public transport.
Which is what will happen anyway, even with gas, because there’s no money for new bridges, tunnels and roads.
Will be lucky if we can maintain the roads.

#85 IHCTD9 on 12.08.21 at 10:11 pm

#64 Nonplused on 12.08.21 at 6:51 pm
Let’s put it to music!

https://www.youtube.com/watch?v=rx5mE9XPcWw&t=133s
——

I liked the inflation adjusted value meal poster lol!

“Yes, uhh.. I’ll have a 1 pc Nugget meal with a McWater please?”

#86 Bogled on 12.08.21 at 10:17 pm

#76 Griffith

I did very similar calculations with the portfolio visualizer and came to identical conclusions. I don’t particularly have an issue with using preferreds but feel it’s unfair to call the portfolio 40/60. As well if those preferred are generally CDN as in ZPR doesn’t this combine to make one pretty overweight in CDN?

#87 Dragonfly 58 on 12.08.21 at 10:26 pm

I live in British Columbia so an atraction to British cars from a young age. Mainly old MG’s but a couple of TVR’s and a Lotus over the years.
I have owned the current TVR { 1974 2500 }for long enough that it has turned into a pretty good investment. Prices were quite static for a few decades but have sharpley gone up over the last several years. At least 5 or 6 times what I paid for it if I was ever tempted to sell. But it’s a keeper, my son will probably end up with it. Quick enough with great handling and pretty decent fuel economy. Also fiberglass body so no body rust problems. Whats not to like ?

#88 DON on 12.08.21 at 10:31 pm

#39 Billy Buoy on 12.08.21 at 4:11 pm
What no government will tell you….and why I am LONG OIL and even the tar sands….

https://ourfiniteworld.com/2021/12/03/is-it-possible-that-the-world-is-approaching-end-times/

Anyone disagree?

**********

Space the final frontier…for now.

I watched a show on mining asteroids or our moon…we will replace our moon with
large reflective solar panels positioned in space around the Earth to provide power and 24 hour sun. We could control the darkness world wide on a dimmer switch.

Hopefully they will develop the technology before the human race gets expelled from this planet. Mother Nature has us in her sights.

As for inflation I think there will be political pressure to act. A minority gov will be compellef to act. This all assumes the wheels won’t fall off the wagon while the experts await more data. ‘We never saw it coming…nobody saw it coming’…at least nobody in their circles.

No free lunch for us…the gov will do just fine. Vacouver city taxes 6.5% increase confirmed.

#89 IHCTD9 on 12.08.21 at 10:47 pm

#72 Sail Away on 12.08.21 at 7:42 pm

Oh, no way will a new planet be needed. Earth is perfect.

Looking at it from a biological perspective: every environment has a carrying capacity, and when that’s exceeded, life adjust accordingly. There are thousands and thousands of island ecosystems with terrestrial plants and animals that have long and detailed history of growth, collapse, evolution, uneasy stasis, extinction, change, etc.
———

That’s true for every life form on earth – except humans. We’re way past natural carrying capacity based on human muscle power. Estimates are without energy and technology, Earth could support about 1.5 billion humans. Population increase and oil consumption line graphs are two near parallel lines.

We got brainpower far in excess of anything that lives, and we can cooperate on a global scale. The vast majority of us don’t like death or suffering. We went out and subdued the earth, and we’re going to keep doing so. The ultimate line in the sand for humans is energy, not food/water. We overcame the food problem over the last few hundred years. Once we harness all the energy available to us while we still walk the earth, our only option to avoid suffering and death is expanding off the Earth. We are 100% going to try and do so if history is any indication.

The wild card is we also now possess the power to wipe the Earth clean of humanity at the push of a few buttons.

#90 Shawn Allen on 12.08.21 at 10:52 pm

Investment Hubris

We have had now 13 years of almost continuously rising stock markets. (2009 through 2021).

BOTH stocks and bonds did amazingly well and far higher than historic averages.

In this environment it was extremely easy to do well.

All of us should keep in mind that we were riding an amazing tail wind. It won’t always be that way.

#91 crowdedelevatorfartz on 12.08.21 at 11:52 pm

@#38 Dolce

“If Tesla charges premium $ for their vehicles, start making them look premium. ”

+++

I have to agree.
At least “saving the planet” should look cool.

The biggest ( and most expensive ) Tesla SUV looks like an upside down tub with wheels.

But the soccer Moms and Dads can tell the brats they’re saving the planet as they tuck them into bed in the 4000sq ft mansion

#92 crowdedelevatorfartz on 12.08.21 at 11:53 pm

@#90 Shawn Allen
“In this environment it was extremely easy to do well.
All of us should keep in mind that we were riding an amazing tail wind. It won’t always be that way…”

+++

Are you talking about Real estate or investing?

#93 JaneD'Ark on 12.08.21 at 11:59 pm

Food for thought: the IR hike will not contain the inflation, because the inflation is not a result of low IR. It is also not a result of a booming economy. It is a result of out of control money creation, and it will run its course (i.e. increased volume of money needs to balance against the same volume of products/services.)

#94 Free to Roam on 12.09.21 at 12:04 am

Trudeau spending backed by Tiff jawboning, a deadly cocktail for Canadians. But, Trudeau has said he’ll ‘ replace us with those who deserve the country more’, his exact words, not mine.

Gerry Butts will be retired by then. He left Ontario in tatters, no worries, he’s got Canada to ‘replace’. Who will be our ‘replacements’ must not yet understand that 100% taxation is all they’ll have. My call in this, Canadian immigration will be a refugee camp because no working professional will choose to pay such an egregious rate of tax. After all, the Boomers who now pay 70% of income in direct and indirect tax will have either died or abandoned ship…like me.

Seriously, there are fewer reasons for professionals to immigrate to Canada than ever before. Here in Asia, salaries are far higher, taxes far lower, standards much higher, no racism in elementary schools. My cost of living is a quarter of what it was in Canada. I hire a driver instead of paying a government tax. I hire a maid to clean and shop. Hospital care, there’s no comparison. Vancouver’s best are third world quality by comparison. My hospital ( private) is like a 5 star resort . You don’t wait 6 months for an appt, more like twenty minutes. So, Trudeau supporters, what’s in it for your kids to let the country die on the vine?

#95 Satori on 12.09.21 at 1:15 am

#60 IHCTD9 on 12.08.21 at 6:01 pm
#39 Billy Buoy on 12.08.21 at 4:11 pm

End of days… Ahhh once humans are extinct every animal and living thing on the planet will breathe a sigh of relief!!

#42 Billy Buoy on 12.08.21 at 4:20 pm

As Billy said “were all gonna die, get living!”

Amen!

#96 Sail Away on 12.09.21 at 1:30 am

#89 IHCTD9 on 12.08.21 at 10:47 pm
#72 Sail Away on 12.08.21 at 7:42 pm

Oh, no way will a new planet be needed. Earth is perfect.

Looking at it from a biological perspective: every environment has a carrying capacity, and when that’s exceeded, life adjust accordingly. There are thousands and thousands of island ecosystems with terrestrial plants and animals that have long and detailed history of growth, collapse, evolution, uneasy stasis, extinction, change, etc.

——–

That’s true for every life form on earth – except humans. We’re way past natural carrying capacity based on human muscle power. Estimates are without energy and technology, Earth could support about 1.5 billion humans. Population increase and oil consumption line graphs are two near parallel lines.

We got brainpower far in excess of anything that lives, and we can cooperate on a global scale. The vast majority of us don’t like death or suffering. We went out and subdued the earth, and we’re going to keep doing so. The ultimate line in the sand for humans is energy, not food/water. We overcame the food problem over the last few hundred years. Once we harness all the energy available to us while we still walk the earth, our only option to avoid suffering and death is expanding off the Earth. We are 100% going to try and do so if history is any indication.

——–

Oh, it’s equally true for humans. We’re just clever little bonobos who are good at finding hidden bananas.

We haven’t exhausted all sources yet, but we will eventually. And no big deal- it will just mean a reduction in carrying capacity. The earth itself is completely indifferent.

A rabbit hemmorrhagic fever wiped out 99% of the rabbits on Vancouver Island a few years ago. Tens of thousands of mothers, fathers, baby rabbits of all genders and orientation.

Nobody misses them, nobody cares, nobody picked them peaches and pears. Respect, Mr. Silverstein.

#97 slick on 12.09.21 at 1:50 am

heard a good one tonite;

So far, Alec Baldwin is more dangerous than the Omicron variant.

#98 Jane24 on 12.09.21 at 2:35 am

So Canada is now so expensive to live in you need to get a financial check before buying a dog!

Anyway Boris has just announced that as of Monday England must revert back to WFH. No more hybrid working until they figure out if this new variant poses a risk or not. Back to square one and we are even calling in the 35 to 39 years olds for their booster next week. So even three Covid shots are not enough!

#99 Wrk.dover on 12.09.21 at 5:40 am

#45 Sail Away on 12.08.21 at 4:42 pm

Joey has life all figured out :). Sometimes I envision myself retired and motoring off to Lake O in a nice new boat for a morning of fishing. Other times I can’t see how a comfy lawn chair on the riverbank under a nice tree wouldn’t be even better. Bobber and a crayfish, cooler containing “favourite drink”, and a couple good sandwiches. That sounds hard to beat.

——-

Luckily, your choice can always be ‘both, thank you’.

That said, hiring a charter is a great way to way to go. You get top notch equipment operated by an expert who knows exactly what works in exactly the right areas, then he cleans your fish and you drive home with fish and memories and no equipment to clean, lube, repair or maintain. Then if you love it so much you want to fish all the time, buy your own gear and cut the learning curve by copying everything the charter did.
____________________________________

That is excellent advice, especially so if you had added; the Florida Keys has a different species of sport/game fish for each of the 52 weeks of the year, be it offshore in the gulf stream, in shore, in a channel, the back bay, the mangroves or on the salt flats. Easily a thousand charter boats available/Monroe County alone. Over a million boats registered annually in Florida for over thirty years now.

But Home Boy like a fish with a touch of mercury and PCB. Just wants to wet a line, while the sun eats the tires on his lawn mower.

#100 crowdedelevatorfartz on 12.09.21 at 7:35 am

@#98 Jane24
“Anyway Boris has just announced that as of Monday England must revert back to WFH. No more hybrid working until they figure out if this new variant poses a risk or not. Back to square one…”

+++

Well, if you get a bit of “cabin fever” and need a shot of fresh air and space…
There’s always the colonies…. just don’t bring your dog….unless you’ve passed a credit check.

#101 jess on 12.09.21 at 7:38 am

chinese real estate

S&P, said earlier this week that “default looks inevitable for Evergrande” with repayments of $3.5 billion on US-d

https://www.federalreserve.gov/publications/files/financial-stability-report-20211108.pdfollar denominated bonds due in the coming months.

#102 crowdedelevatorfartz on 12.09.21 at 7:39 am

@#97 Slick

I saw a T-shirt for sale after his interview..

“Gun’s don’t kill people. Alec Baldwin does.”

#103 crowdedelevatorfartz on 12.09.21 at 7:44 am

@#96 Sail Away
“A rabbit hemmorrhagic fever wiped out 99% of the rabbits on Vancouver Island a few years ago. Tens of thousands of mothers, fathers, baby rabbits of all genders and orientation.”

+++

Yep.
I worked at a contract job in Richmond for a few months a few years back.
The huge dirt parking lot had rabbits ….. everywhere.
You would see dozens of the cute little buggers everywhere, all the time…
Eagles snapped them up on a regular basis.

Then, one weekend, they paved the parking lot.

No more rabbits.

#104 JaneD'Ark on 12.09.21 at 8:22 am

#96 Sail Away on 12.09.21 at 1:30 am
#89 IHCTD9 on 12.08.21 at 10:47 pm
#72 Sail Away on 12.08.21 at 7:42 pm

RE: Earth carrying capacity.
Well we are nowhere near it. Can earth support 1T of people? Yes. Can it support 10T? Yes. Probably not 100T though. 900T I calculated is a hard upper boundary (total sun power earth receives/human power). Due to some inefficiency in all of natural processes, 10T is likely the number number beyond which human population can’t possibly be sustained.

Anyway, exact number or even order of magnitude don’t matter, the point is we have a long way to go before we hit the wall. At current level of multiplication we have 350 years before reaching 1T.
The caveat is that quality of life will get progressively worse and certainly even at 100B it will not be at the level we enjoy.

#105 IHCTD9 on 12.09.21 at 8:30 am

#45 Sail Away on 12.08.21 at 4:42 pm

Luckily, your choice can always be ‘both, thank you’.

That said, hiring a charter is a great way to way to go. You get top notch equipment operated by an expert who knows exactly what works in exactly the right areas, then he cleans your fish and you drive home with fish and memories and no equipment to clean, lube, repair or maintain. Then if you love it so much you want to fish all the time, buy your own gear and cut the learning curve by copying everything the charter did.
_______

I’d totally do that for a foray into salmon fishing Lake O since I’m green. It be a “fishing course” as much as a day on the water.

#106 IHCTD9 on 12.09.21 at 8:34 am

#95 Satori on 12.09.21 at 1:15 am
#60 IHCTD9 on 12.08.21 at 6:01 pm
#39 Billy Buoy on 12.08.21 at 4:11 pm

End of days… Ahhh once humans are extinct every animal and living thing on the planet will breathe a sigh of relief!!
____

Ha! My guess is if we go extinct we are going to take most of everything else with us. We’ll have to start back at the small mammal level.

#107 IHCTD9 on 12.09.21 at 8:42 am

#88 DON on 12.08.21 at 10:31 pm

No free lunch for us…the gov will do just fine. Vacouver city taxes 6.5% increase confirmed.
___

Man that’s a whopper!

#108 IHCTD9 on 12.09.21 at 8:48 am

#80 cramar on 12.08.21 at 9:05 pm
#25 Mr Fox on 12.08.21 at 3:14 pm
Do you consider the “rule of 90” still a good idea?

Yep. – Garth

————–

Doesn’t work well when you get older. Goes out of whack the older you get. Creeps up due to rising value of RE when it should be a decreasing part of your net worth.
___

I think if you get to the point were you have accumulated liquid and hard assets, and find yourself struggling to follow the rule of 90 because your RE is shooting to the moon – you’re doing just fine :).

#109 Dharma Bum on 12.09.21 at 8:58 am

Don’t forget to own some utilities.

Steady Eddy.
Good divvies.

Everybody, I don’t care who y’are, needs:

Heat
Light
Power
Water
Sewage
Communication

A valuable and secure portion of any B&D portfolio.

#110 Calgary on 12.09.21 at 9:44 am

https://www.reuters.com/business/chinas-kaisa-kicks-off-12-bln-debt-restructuring-after-missing-pay-date-source-2021-12-09/

Will the contagion spread?

#111 Sara on 12.09.21 at 10:37 am

Good Guv’nor Macklem
A poem inspired by the holiday classic, Good King Wenceslas.

By Warren Lovely, Managing Director at National Bank of Canada, and Chief Rates and Public Sector Strategist.

Good Guv’nor Macklem looked out
On the holiday season
With inflation up and up
And job gains uneven
Brightly shone most stocks that night
Though input costs were cruel
When the PM came in sight
Gathering votes to rule

Hither, trader, stand with me,
If thou knowst it, telling
Yonder fellow, who is he?
Where and what his dealings?
Guv, he works across the way,
Beyond eternal fountain
Underneath the clock that bay
By the steps for mountin’

Bring me bonds and bring me stocks
Bring me credit hither
We shall see supporters flock
As assets get dearer
Governing Council, forth they went
Forth they went together
Lifting rates a lesser extent
Than the current bettor

Guv, the outlook’s brighter now
Animal spirits stronger
Cheers my heart, that you allow
Risk be bid for longer.
Mark my forecast, good traders
Make your markets boldly
Thou shall find rate policy
Chills assets less coldly.

In the Guv’nors steps we trod
Front-end rates be dinted
Asset gains proved very broad
Wherever they be printed
Therefore, investor, be sure
Job or home possessing
Ye, who hikes a measured pace
Lends markets a blessing.

#112 Ponzius Pilatus on 12.09.21 at 10:51 am

#107 IHCTD9 on 12.09.21 at 8:42 am
#88 DON on 12.08.21 at 10:31 pm

No free lunch for us…the gov will do just fine. Vacouver city taxes 6.5% increase confirmed.
___

Man that’s a whopper!
———————-
Yeah,
About two Whoppers with Cheese a month.
A NothingBurger.

#113 Ponzius Pilatus on 12.09.21 at 10:57 am

#103/ CEF
Then, one weekend, they paved the parking lot.
—————————-
Don’t it always seem to go,
That you don’t know what you’ve got.
‘Till it’s gone.
The paved paradise, and put up a parking lot.

#114 Quintilian on 12.09.21 at 12:00 pm

Some the posters will undoubtedly check out Investopedia website to paraphrase a chunk of words to describe the BOC latest inaction; but I will go with the most basic and honest comment:

IMMORAL

#115 Sail Away on 12.09.21 at 12:06 pm

#113 Ponzius Pilatus on 12.09.21 at 10:57 am
#103/ CEF
Then, one weekend, they paved the parking lot.

——-

Don’t it always seem to go,
That you don’t know what you’ve got.
‘Till it’s gone.
The paved paradise, and put up a parking lot.

——-

Hey, at least pavement makes it easier to get your daily 10,000 steps.

Just wander around and around in a circle to meet an arbitrary goal that the interwebz overlords set upon you as a compliance test.

#116 Shawn Allen on 12.09.21 at 12:08 pm

Investment Hubris

#92 crowdedelevatorfartz on 12.08.21 at 11:53 pm asked

@#90 Shawn Allen
“In this environment it was extremely easy to do well.
All of us should keep in mind that we were riding an amazing tail wind. It won’t always be that way…”

+++

Are you talking about Real estate or investing?

***********************
Well, I mentioned stocks and bonds so you know I had investing in mind. But yes a huge tail wind applied to real estate investing as well.

That tail wind and buoyancy force lifting stocks, bonds and real estate and all financial assets was declining interest rates.

Everyone who made big gains in financial assets should give some credit to the tail wind and a little less to their own genius.

The old saying is that it’s better to be lucky than good.

We been lucky!

#117 DON on 12.09.21 at 12:09 pm

https://www.theguardian.com/australia-news/2021/nov/22/twilight-for-australias-housing-boom-as-prices-to-fall-10-in-2023-cba-says.

Interesting! Expected surge in listings.

#118 Sweet Italian vita on 12.09.21 at 12:16 pm

#98 Jane24
“Anyway Boris has just announced that as of Monday England must revert back to WFH. No more hybrid working until they figure out if this new variant poses a risk or not. Back to square one…”

Boris Johnson like the rest of the so called WESTERN elites is nothing but a RETARD.ED AND CORRUPT CRE.TIN.

DITTO . IT’S AN AXIOM I DON’T NEED TO PROVE IT ANYMORE

#119 IHCTD9 on 12.09.21 at 12:55 pm

#112 Ponzius Pilatus on 12.09.21 at 10:51 am
#107 IHCTD9 on 12.09.21 at 8:42 am
#88 DON on 12.08.21 at 10:31 pm

No free lunch for us…the gov will do just fine. Vacouver city taxes 6.5% increase confirmed.
___

Man that’s a whopper!
———————-
Yeah,
About two Whoppers with Cheese a month.
A NothingBurger.
____

Usually property taxes only go up a chicken McNugget or two per year.

#120 DON on 12.09.21 at 2:07 pm

#119 IHCTD9 on 12.09.21 at 12:55 pm
#112 Ponzius Pilatus on 12.09.21 at 10:51 am
#107 IHCTD9 on 12.09.21 at 8:42 am
#88 DON on 12.08.21 at 10:31 pm

No free lunch for us…the gov will do just fine. Vacouver city taxes 6.5% increase confirmed.
___

Man that’s a whopper!
———————-
Yeah,
About two Whoppers with Cheese a month.
A NothingBurger.
____

Usually property taxes only go up a chicken McNugget or two per year.

**********

Gotta factor in shrinkflation. One mcnugget is half of what it used to be. And now peeps will ask for a McTapWater.

#121 Christian on 12.09.21 at 2:40 pm

If you’re adding all this risk to your bond portfolio, you should be benchmarking against VGRO with 80% equities.

#122 Satori on 12.09.21 at 3:02 pm

#60 IHCTD9 on 12.08.21 at 6:01 pm

Ha! my guess is if we go extinct we are going to take most of everything else with us. We’ll have to start back at the small mammal level.
_________________________

LOL! You are always one step ahead! That, my friend, makes Total sense!

#123 Nonplused on 12.09.21 at 3:41 pm

#119 IHCTD9 on 12.09.21 at 12:55 pm
#112 Ponzius Pilatus on 12.09.21 at 10:51 am
#107 IHCTD9 on 12.09.21 at 8:42 am
#88 DON on 12.08.21 at 10:31 pm

I hope you are getting 2 whopper meals for that! Oh and the whoppers are up 6.5% too.

#124 Maths are hard on 12.09.21 at 3:46 pm

#104 JaneD’Ark on 12.09.21 at 8:22 am
#96 Sail Away on 12.09.21 at 1:30 am
#89 IHCTD9 on 12.08.21 at 10:47 pm
#72 Sail Away on 12.08.21 at 7:42 pm

RE: Earth carrying capacity.
Well we are nowhere near it. Can earth support 1T of people? Yes. Can it support 10T? Yes.

——————————-

Me thinks you don’t know what a trillion is. Or possibly even a billion. Are you a politician by chance?

#125 Linda on 12.09.21 at 4:03 pm

#79 ‘Cici’ – well, just read that the CB is currently awaiting its next 5 year mandate/directive from our government. There was a fairly strong implication in the tone of the news article that the government may well tell the Bank of Canada to ‘adjust’ the inflation targets. Currently the inflation range the CB has stated is best is between 1-3 percent, with the desired target being annual inflation of 2%. So now am wondering what the adjusted parameters will be. 1-4 percent? 1-5 percent? Will the new desired target be 3% or will it be higher? And if it is higher will that ease the pressure to raise the central bank rate or will it simply indicate what we can expect those eventual increases to be?

#126 JaneD'Ark on 12.09.21 at 5:39 pm

#124 Maths are hard on 12.09.21 at 3:46 pm

I do. I also know when I’m talking to a jerk. Now bugger off.

#127 MissingOut on 12.10.21 at 9:30 am

“As a result, VBAL has given a 7.8% return during 2021. That compares with 13.4% for the GreaterFool® version of a balanced investing approach.”

You’re bragging about a 7% and 13.4% return in 2021? The S&P 500 went up 26% in the same time. Plus you have to minus fees from the 13.4% return, so it reality, it’s a 12.4% return. Be honest, Garth.