Reckless?

It’s the age of spec.

Was it the pandemic that caused this? Crowdfunding and GameStop? Crypto and Bitcoin? RobinHood and free trades? Perhaps it’s the crazy windfall gains on real estate that have made homeowners reckless and the house-wanting even moreso.

Have you noticed money’s almost losing its value? Average houses are two million now in the GTA and Van. Million-dollar mortgages are absolutely common. The truckers raised ten million to sit in hot tubs in Ottawa and irritate the locals. Banks make a billion a month in profits. The country owes a trillion, or twice what the debt was a few years ago.

And yet wages are growing far less than the official inflation rate and, as detailed here yesterday, a huge number of people can barely cover the cost of their borrowings. Maybe this is why 36% of Millennials now own crypto, despite its epic volatility and potential for catastrophic losses. It’s all turned into a game. Since nobody can actually  buy, say, a house with earned income, or retire with an adequate pension, you gotta gamble.

Spec nation. That’s us.

So let’s talk about AJ. He’s thinking of joining the ranks of the leveraged and hopeful, but has the common sense to come here for a reaming first. He owns a property, has seen windfall gains, and recently arranged a HELOC of four hundred grand. Not enough. He’s looking to lever this up.

“I’m veering towards a margin loan with brokers who will put up 70% of the loan if I contribute 30%. Technically I could use $300k from the HELOC and add another $700k to give me a $1m portfolio. I would also lodge another $70k cash with them to give me a 10% cushion to avoid any unexpected margin calls.

My investment portfolio would look something like this: $800k VGRO and $200k ZPR. That would give me 64% stocks, 16% bonds and 20% prefs and would need minimal rebalancing work.

The interest would be 700k @ 1.6% for the margin loan and 300k @ 2.7% for the HELOC. An average rate of just under 2% per annum. I realise rates are on the up so that average rate could quickly move to 3.5% so I’m assuming 3.5% in my calculations. I’m also assuming a tax deduction benefit of roughly 30% so the 3.5% would fall to ~2.5%. The dividend pay-out for VGRO is 1.95% and ZPR is 4.71% giving an average dividend yield of 2.5% which offsets the net interest cost.

I’m seeing a lot of upside here assuming I hold this portfolio until retirement and beyond which is roughly 15 years away  It is a lot of leverage so I’m hesitant. I’m new to this area and you may be able to highlight some obvious pitfalls as to why I should shy away from this? If you are in favour, do you think I should pull the trigger in one bullet or go with dollar cost averaging for a few months?

First, is this a reasonable portfolio?

Answer: it’s okay. But understand the ETF is a fund-of-funds. It owns seven other Vanguard exchange-traded funds, rather than individual stocks or bonds. The return since inception is in the 7% range and the cost is .25%. Pitfalls may be that it’s light on international exposure and too heavily equity-oriented. Adding in the preferred shares helps, although a 20% weighting to prefs is high and they’ll underperform once interest rates crest – so over 15 years this will need attention.

The real question is about leverage. Does it make sense to put together a $1 million portfolio with 100% borrowed money?

We can’t answer without knowing more about AJ. Let’s hope he has other, substantial assets. Let’s assume he’s got a stable job, good income and some kind of corporate pension. Also that he’s working in a recession-proof industry, since it’s entirely possible we’ll see a downturn sometime in the next decade.

After all, if another 2009 (credit crisis) or March of 2020 (Covid) came along and stocks took a 35-50% kick in the groin, AJ would have to pony up a big mess of money while other non-leveraged investors just ignored the headlines and waited for recovery. That could trigger the sale of his home to cover the debt, while the real estate market floundered along with everything else.

The margin loan is always ripe for a margin call. Be ready for that. As for the HELOC, few borrowers apparently understand this is also margin debt. At any time the bank can give you a dingle and require repayment in part or in full, if the economy takes a hit or your personal situation changes. Additionally, the feds are considering disallowing interest-only payments on home equity lines of credit, forcing them to be amortized. That would reduce deductibility, making the loan more costly to service.

Smart investing is all about matching reward with danger. These days that line has blurred. Insane inflation in detached houses, or Tesla shares, or Dogecoin and NFTs – or equity markets themselves – has anaesthetized people to risk. At age 50, the single most reckless thing AJ might do is to borrow a million and roll the dice. Then again, he could make out like a bandit.

Just don’t ask me to bless it.

About the picture: “Looks like you may be running low on pooch pics so I thought I’d pass along one of our good boy, Rupert!” writes Alessandro. “We picked him up in the summer of 2020 as things were looking pretty dark here in Toronto…my small business (fitness studio) had to shut and took a beating, but I took the opportunity to spend lots of time with my new furry companion… here’s a pic of his favourite napping position :)  Best part of my wife’s day after spending 12 hours as a nurse in the ICU was coming home to his licks and cuddles…never gets old. At least our investments were something we didn’t have to worry about over the last couple years…thank you for all you do – haven’t missed reading a post since I found your blog 6 years ago!”

153 comments ↓

#1 cramar on 03.21.22 at 2:29 pm

Most people with real wealth could not sleep at night carrying AJ’s leveraged portfolio. The way to real wealth is to invest wisely for decades using no leverage. But today everyone wants instant wealth, using leverage and highly risky casino bets. One miscue and you’re toast.

#2 greyhound on 03.21.22 at 2:29 pm

Spec nation. That’s us.

Yup, everything still looks great to Coyote — he’s gaining on Roadrunner as they approach the cliff edge…

We’re all gonna be rich!

#3 Hiding on the Backstreets on 03.21.22 at 2:31 pm

Nothing’s certain, and it’s a risk. If he gambles, he should increase his odds and split VGO into individual ETFs, lower total MER. Use Norbert’s Gambit.
I’d like to know the odds of Canadian banks recalling HELOCs…Garth has it happened recently, or in times of severe crisis?

I like Al’s attitude though. Fortune favours the bold.

#4 Philco on 03.21.22 at 2:39 pm

Don’t do it AJ! Household op costs are going to continue to rise.
Look at those energy prices!
Is Leo feeling the pain at the pump? LOL
https://www.armstrongeconomics.com/world-news/climate/clueless-celebrities-attempt-to-worsen-energy-crisis/

#5 TurnerNation on 03.21.22 at 2:42 pm

#61 Flop… on 03.20.22 at 5:43 pm

^^ The 3.6l Chrysler/Dodge engine is a dud sez the Car Wizard. Cylinder heads cracking.
Start at 11:40. Earlier is the GM 3.6l…timing chain goes bust early. Why they (Terrain, Acadia) are so cheap in the used market.

https://www.youtube.com/watch?v=RCvKDr7DYYE

— #2 Garthnation on 03.20.22 – a hearty welcome to the pathetic weblog. Another dreamer. That we may vanquish the moody H and install our rightful leader nationally as the hair, err I mean heir apparent.


— WW3: yes this war is for our Minds.

.Lockdowns see number of Israelis diagnosed with psychiatric disorders jump by 60% (israel365news.com)

— These countries were invaded, occupied? A permanent system of control.
It has replaced every religion. Test > Repent > Repeat.

Why…Global Supply chain…forced reset/shutdown of Shenzhen and Shanghai. In wartime you cut off the supply lines.

.China reports first COVID-19 deaths in more than a year (reuters.com)

.Shanghai’s Disney resort shut amid record daily local COVID infections (reuters.com)
“On Monday, Shanghai reported 24 new cases. The city earlier suspended access to two residential areas and carried out mass testing at dozens of others.”

.Hong Kong plans to review COVID restrictions on Monday as cases ease (reuters.com)

#6 Prince Polo on 03.21.22 at 2:43 pm

At least we finally have the bearded one’s opinion on 20% prefs + 80% XGRO! Curious if AJ’s plan involves any sort of pay-down of principal or just interest-only payments for 15 yr? That’s a mighty long time to be suffering through all of that margin!!

#7 Linda on 03.21.22 at 2:47 pm

‘Rupert’ is living a dog’s life:)

Today’s blog makes me wonder how many folks are thinking like AJ or have actually implemented a similar plan. Shades of the actions of the masses prior to the latest bubble going ‘POP!’, resulting in much financial carnage & wailing. I’d recommend AJ listen to Kenny Roger’s ‘The Gambler’ before committing to the proposed plan.

#8 Apocalypse NOW on 03.21.22 at 2:48 pm

AJ has no need to worry about the distant future.

It’s not coming for 99% of us.

PREPARE

#9 YourRealtor(TM) on 03.21.22 at 2:51 pm

AJ,

Bet it all on buying several rental houses from your friendly neighbourhood Realtor(TM). House prices always go up in our flyers.

Being a landlord is easy. No problem with Landlord / Tenant Boards getting rid of non-paying tenants in a timely manner…

And you’ll enjoy getting rid of bedbugs, roaches, and pesky water leaks in your spare time.

#10 alltheway on 03.21.22 at 2:53 pm

TSX at an ath, topping >22k intraday.. took some profits off the table.

#11 Quintilian on 03.21.22 at 2:54 pm

“Also that he’s working in a recession-proof industry, since it’s entirely possible we’ll see a downturn sometime in the next decade.”

Downturn could and likely be a lot sooner than the next decade.

One of the signs is the huge increase of the savings rate which is not evenly distributed, as the top tier have seen their income grow, and asset inflation added an extra dollop to the fake prosperity.

And that’s one more reason AJ thinks he is in the wealthy league.

As inflation robs purchasing power from the regular wage workers, consumption will drop, and inflation will continue to erode demand further from most consumers, and Central Bankers can’t stop inflation with puny increases and idle threats.

#12 Søren Angst on 03.21.22 at 2:55 pm

“…while other non-leveraged investors just ignored the headlines and waited for recovery.”

– AMEN.

——————–

The 100 of Nasdaq took it, yet again, in the NARDS today.

https://www.cnbc.com/nasdaq-100/

For fun, click %CHANGE. Why I got out weeks ago. Value winning. Growth losing.

Thank you Garth et. al. for the warning awhile ago.

Only 1 Sector mopping up today. Again, click % CHANGE.

https://www.cnbc.com/sectors/

My 2 Oil beat their Energy.

yeah my Oil.

yeah Maple too.

#13 Sail Away on 03.21.22 at 3:04 pm

Re: Heloc

Well, AJ, I did exactly this in June 2021 with $1M Heloc at 2.65%. It went up, it went down and today sits at 9mo total return of +5.6%. It’s ok. I’m holding. My portfolio was posted for posterity at the time.

Running a quick simulation of your proposed portfolio, if also taken at the same time: VGRO is flat and ZPR has lost -1.8%. With dividend, your proposed portfolio would now be +1.40%. 2 weeks ago, it was all underwater.

#14 Nicky on 03.21.22 at 3:11 pm

Quadrillions in derivatives, 80% of all dollars created in last 2 years, list goes on.

It’s more that a big speculation…

The financial system has become a big mealy meta verse.

#15 Dave on 03.21.22 at 3:23 pm

Interesting to see what’s happening in the UK with the oligarchs being sanctioned. Some of their properties will be expropriated. Of course there is none of that happening in Canada. Those 20 million dollar properties in Shaughnessey are owned by nurses, cops and teachers right garth?

#16 Overheardyou on 03.21.22 at 3:25 pm

This is what happens when a society is built on believing debt is normal. If the government never has to worry about it why should I, the citizen?

#17 IHCTD9 on 03.21.22 at 3:33 pm

No way in h3ll would I consider something like this. If AJ is 50’ish, it’s an all or nothing last gamble. A heap of demand loans heading into choppy water.

#18 wallflower on 03.21.22 at 3:36 pm

I am not first-hand knowledgeable but I read increasingly about the virtual world gaming ‘investments’ and it could become huge.
Where are the financial philosopher experts on reality finance? (Does that even make sense, that question?)

#19 ElGatoNeroYVR on 03.21.22 at 3:39 pm

Wow ,that is some courage right there.Reminds of a quote I read in a military fiction book a while ago ,it goes something like this :
There are old pilots and bold pilots . There are no old ,bold pilots.

#20 Faron on 03.21.22 at 3:43 pm

#163 Sail Away on 03.21.22 at 12:46 pm

Cool, thanks for the insight to the Sail away IMprovement Project (the SIMP). I’m not a Bible guy, but hear that self-aggrandizement is basically what Jesus did before the Romans got him. Jesus Twitter was the best Twitter.

#21 millmech on 03.21.22 at 3:43 pm

Too much risk to be fully leveraged like that, only margin half of that to support being called. He should buy good dividend payers like banks, pipelines, utilities, telecoms, no ETF to chew away at his base. Use the dividends to pay down the loan and get capital appreciation as well. In eight years there is a good chance he has doubled his money(made $500k from other peoples money), this is what the wealthy do, they use OPM to generate wealth with write offs.

#22 Dr V on 03.21.22 at 3:47 pm

Hmmm…so AJ is trying to offset the interest cost with the divvies, which means his $1M invested depends entirely on capital appreciation as there is no opportunity to DRIP, unless he elects to pay the interest through his wages, and pay any taxes on the DRIPs.

Hmmm….assuming he still has a mortgage to pay off which will take him some or all of the 15 years and does not, or cannot, add anything more to the invesments. If
the latter, he really doesnt have any other way to invest but to borrow.

Hmmmm….so the total portfolio after 15 years could
still have a $1M liability attached to it, and at a meagre 5% will have roughly doubled in value. At 7.5% the value will triple.

To pay back the loans, and with a portfolio of few holdings, he may have to realize a substantial
cap gain, at a possible higher inclusion rate than today.
Some of this cap gain may have been paid through distributions along the way and taxed already.

hmmmm……..a real swing for the fences with many unknowns.

#23 Søren Angst on 03.21.22 at 3:48 pm

#13 Sail Away

Post your last 30 days instead.

My last 30 days Threadbare Portofolio:

+3.87%

+0.74% from yesterday. Low and slow and happy for it.

Live a little instead of Mr. 90 day performance swagger.

Let’s see you last 30 day performance swagger.

#24 Doing my Part on 03.21.22 at 3:53 pm

Aj should have done this in March 2020, now on margin… buy high sell low. Can you say risk at 50.

#25 Dave on 03.21.22 at 3:54 pm

A townhouse in Kelowna bc is going for $1.1M. There is a lineup around the corner fighting over units!!

This is double of what is affordable…what will it take for a mojor correction?

#26 Søren Angst on 03.21.22 at 4:02 pm

Blog title question.

Reckless?

No.

In one word:

Desperate.

#27 Shawn on 03.21.22 at 4:12 pm

Did the Bank of Canada Print Money to buy bonds?

“Everyone” thinks the bank of Canada printed massive amounts of money recently.

But go to their web site and search money printing and only two recent articles turn up.

Both articles explicitly claim they did not print money: One says:

“For both QE and CE, we buy assets from financial institutions, not from businesses or governments.

“How are we paying for these assets? There is a common misconception that we are just printing money, but this isn’t the case. We pay for these purchases with settlement balances. In effect, settlement balances act like loans from financial institutions to us. When we buy assets, we borrow from financial institutions by crediting them with a deposit of settlement balances in the accounts they have at the Bank of Canada. Like the deposits you may have at your bank, settlement balances earn interest. Right now, we pay an interest rate of 0.25 percent on settlement balances, the same as our policy interest rate.”

https://www.bankofcanada.ca/2020/08/our-covid-19-response-large-scale-asset-purchases/

The other article also claims that asset purchases are not printing money and should not cause inflation (I am not making that up)

https://www.bankofcanada.ca/2020/04/teachable-moments-from-the-pandemic/ (search for print in this article)

So there… I guess…

But I think the bank of Canada should explain exactly how the money supply increased so much if it was not QE. Was it mostly all the borrowing by people and corporations stimulated by low rates. (Indirect money creation)

I don’t see anything like that on their web site.

#28 Leichendiener on 03.21.22 at 4:13 pm

An acquaintance of mine father flew thirty-nine bombing missions as a navigator over Nazi Germany. The statistics of surviving were small. His motto was: never fly high, never fly low, never be the first in, never be the last out. And a common one: when you’re taking flak, you’re over the target.

#29 I’m stupid on 03.21.22 at 4:14 pm

No Garth people like big numbers because it makes them feel important. Why does AJ need to max out everything? Why not employ the same strategy but at 500k? I know why… because 1 million sounds a lot better. Going all in with money you don’t have it the stupidest thing anyone can do, especially at 50.

AJ is a classic example of an average person. He probably invested what he could and made a couple of bucks, then he used the rates of returns with bigger numbers and greed set in.

I’m sure he will get slaughtered as all pigs do.

#30 NJ on 03.21.22 at 4:15 pm

Wow. Personally, I would not even consider this. I would not be able to sleep at night knowing I have 1m dollars of borrowed money in investments. It could work out. It also might not. I would invest regular contributions of your own earned money over a long period of time. It’s safe. It’s not that sexy. But it’s proven to work. Time and time again.

#31 DON on 03.21.22 at 4:26 pm

https://www.bloomberg.com/news/articles/2022-03-21/powell-says-fed-ready-to-hike-faster-go-restrictive-if-needed

Pay wall…but can find in other media.

#32 Stone on 03.21.22 at 4:29 pm

AJ missed the boat. End of March 2020, sure. Markets were in the crapper. But now or anytime after that, why do that?

Sounds like someone who’s trying to catch the wave not realizing the undertow underwater.

#33 Doug t on 03.21.22 at 4:30 pm

It’s always been a “game” – and there have always been winners and losers – problem is the stakes now are huge and risk everywhere – the House rarely loses, the rest of us are stuck gambling

#34 Shawn on 03.21.22 at 4:31 pm

Bank of Canda Printing Money

In its article on printing money in 2020, the bank of Canada said QE was not printing becasue the resulting excess money would soon be used to repay loans and the Bank of Canada balance sheet would shrink back:

Govenor Poloz said (actually lectured):

“Some commentators have likened these operations to “printing money,” which will cause inflation down the road. Indeed, these operations do look the same as what happens when the Bank prints new bank notes. However, this is quite different. Out in the economy people are choosing to hold cash, whether by drawing on a line of credit or by selling a financial asset. If the central bank did not provide that liquidity, a credit crunch would ensue, and that would create a significant downdraft in the economy—in effect, a deflationary shock. Countering that shock requires providing the demanded liquidity until tensions ease, essentially countering a deflationary shock with an inflationary policy.

Later, when the recovery begins and tensions ease, people will put their money back into financial assets or pay down their lines of credit. At that point, the process goes into reverse, and the central bank’s balance sheet can return to a more normal level. This process contrasts with “printing money,” which means expanding the bank’s balance sheet permanently and forcing newly created money out into the system. This of course would be inflationary in an economy that was functioning normally, but the whole point is that ours is not—given the forces acting on the economy, these actions are stabilizing, not inflationary.

That balance of forces will shift as the recovery unfolds. If we were to misjudge the balance of deflationary and inflationary forces during the recovery, the economy could pick up too much steam and inflation could rise. We are alert to this risk and have the tools to respond should it materialize.”

But whoops, (speaking of misjudge), unlike the case of George Costanza in the Seinfeld episode, there has been very little shrinkage of the Bank of Canada balance sheet assets.

https://www.bankofcanada.ca/rates/banking-and-financial-statistics/bank-of-canada-assets-and-liabilities-weekly-formerly-b2/

#35 Dr V on 03.21.22 at 4:35 pm

If AJ has never seen the movie “Hall Pass”, he may want to check out this credits trailer. The premise of the movie is that two men are given a “hall pass” by their
wives to do whatever they wanted for a week. At the end of it all, their friend gives it some thought.

I mean, what could go wrong?

Warning, adult content.

https://www.youtube.com/watch?v=uiD0LfhQFlE&ab_channel=bb32e

#36 Doug t on 03.21.22 at 4:36 pm

#5 turnernation
These countries were invaded, occupied? A permanent system of control.
It has replaced every religion. Test > Repent > Repea

Been saying this for years – religion/church was a cornerstone of society (for better or worse) – it has been slowly replaced by controlling governments and social media – mental health is being destroyed worldwide – you will be a slave, you will own nothing and you will be happy?

#37 Sail Away on 03.21.22 at 4:39 pm

Well folks, the Ottawa arsonist has been charged and was not, contrary to interwebz speculation, linked to the convoy.

In the words of the Good Shepherd: ‘Jump not to conclusions, lest thou f up. Patience.’

https://ottawa.ctvnews.ca/suspect-charged-in-downtown-ottawa-arson-last-month-not-connected-with-freedom-convoy-police-1.5828171

#38 Crystal ball futurist on 03.21.22 at 4:49 pm

Someone has said “Leverage is like a loaded gun. You can make a killing (lots of profit) or shoot yourself ”
Here you are borrowing money to give someone hoping they would do well in their business.
At 50 this sounds like a real bad idea.
How much can you risk without hurting yourself? Maybe 50k? If it works, you have bragging rights. If it doesn’t you can write it off as an expensive educational expense.

#39 don't poke the bear on 03.21.22 at 4:55 pm

stocks are in for a shock.

US 10 year closed today at 2.3% on it’s way to 3%+ quite quickly. bonds are getting shredded.

US growth has fallen to a standstill. earnings won’t grow overall, and valuations will compress. teck stocks hate higher rates. the FED is going to engineer a recession. stocks will get shredded.

prefs are ok, but most of those pref etfs are garbage. and in a liquidity crisis, they will get shredded also.

your portfolio will not do well in the coming environment.

#40 You know Val on 03.21.22 at 4:56 pm

Ua baby ya D+B works ervtim

#41 Scooby Snacks on 03.21.22 at 4:59 pm

I don’t quite understand why someone would want to hold preferred shares right now.
Sure, they pay handsome dividends but their value will decline as interest rates rise, right?

The opposite (rate reset). – Garth

#42 Ballingsford on 03.21.22 at 5:00 pm

Why doesnt AJ just take his money, go down to Vegas, and place it all on ‘red’. Why wait to become wealthy.

#43 dave on 03.21.22 at 5:04 pm

Townhouse in Kelowna is $1.1M – how is affording this?

Mission Impossible.

Doctors cant afford this

#44 Coastal gal on 03.21.22 at 5:11 pm

#126 ustabe 21 03 22
#144 flop

X-Trail is nice gold color (not green). Lady driven… good to know price is reasonable.
It has been very dependable SUV and runs great. if interested contact me at [email protected]. Have not advertised it yet but will next week.

#45 Chris L. on 03.21.22 at 5:38 pm

BANNED

#46 JOHN PICKETT on 03.21.22 at 5:38 pm

I must admit that I am greying if not white on top. But I can recall lots of “core holdings’ over the years as recommended by these dandies in well tailored suits. Dome Petroleum, Nortel, Stelco, Algoma Steel, RIM, Bellatrix, Bre-X, Bonavista. Hundreds of billions of equity wiped out. It is extremely easy to get wiped out in the market. Last place in the world for leverage. Only people that make money are the “account executives” the fancy dressers. In the 1800’s they were snake oil salesmen. Avoid leverage at all costs , or go to the casino. JOHN PICKETT

The subject in question is not contemplating buying stocks, but diversified ETFs. No snakes. No oil. – Garth

#47 Brett in Calgary on 03.21.22 at 5:40 pm

‘Spec nation. That’s us.’

Canada’s financial literacy on display again. Things can only go up…

#48 Brian on 03.21.22 at 5:42 pm

How the Bank of Canada Creates Money Through its Asset Purchases
The creation of money by the Bank of Canada through the purchase of assets like Government of Canada securities has fundamentally the same financial impact as the Bank making loans to the federal government,8 yet the Bank’s governing law, the Bank of Canada Act,9 does not explicitly empower it to make loans of this nature

https://lop.parl.ca/sites/PublicWebsite/default/en_CA/ResearchPublications/201551E

#49 Brian on 03.21.22 at 5:47 pm

(Ottawa) – A man has been charged in relation to a deliberately set fire in an apartment building on Lisgar Street on February 6, 2022. A second man is still wanted by police.

Ottawa Police arson investigators charged Connor Russell MCDONALD, 21 years old, of Ottawa, with one count each of the following:

Arson Disregard for Human Life
Arson Causing Property Damage
Mischief to Property Endangering Life
Mischief to Property
Possess Incendiary Material
He will appear in court on April 21, 2022.

There is no information indicating MCDONALD was involved in any way with the Convoy protest which was going on when this arson took place.

https://www.ottawapolice.ca/Modules/News/index.aspx?newsId=46eea503-f886-4e7a-9188-edbecabca0a6

#50 George S on 03.21.22 at 5:50 pm

There is a movie called “A Beautiful Mind” that is applicable in this case.
It is about a person that was genius level intelligent as well as severely mentally ill and would hallucinate all the time. He learned to cope with the hallucinations and was able to figure out when his brain was telling him things that were wrong and trying to harm him.
The person that you talk about in this article’s brain is telling him things that are wrong and is trying to harm him. At least he has the sense to ask you about it so he is well on his way to learning how to handle his problem brain.

#51 Oracle of Ottawa on 03.21.22 at 5:54 pm

The problem is, the margin call from the bank is usually done when the markets are down and they fear risk of repayment.

#52 Drew on 03.21.22 at 5:56 pm

Do banks ever call in HELOCs? I seems like enough people don’t know they are on demand loans that there would be sob stories going around if it happened.

Garth, haven’t you said half of the 40% fixed should be prefs? So 20%

#53 under the radar on 03.21.22 at 6:11 pm

Borrow a Million to make a paltry spread. Reckless.

#54 Shaggy on 03.21.22 at 6:13 pm

I tend to disagree with the majority of your posters, Garth. As far as I can see, the only real flaws in his strategy is to have too little cushion to ride out potential market fluctuations, and tying his investment to a variable rate demand loan instead of a secured loan with a fixed rate.

As you’ve rightly pointed out, we don’t know how aggressive he is really being. He may be in Toronto or Vancouver with $2MM in home equity. And with inflation running at 5-7% and secured loans available at 3% for 5 years, that’s free money to invest. It’s not a bad strategy to diversify, especially if you build a solid portfolio with a high dividend yield.

#55 Graeme on 03.21.22 at 6:23 pm

“Since nobody can actually can buy, say, a house with earned income, or retire with an adequate pension, you gotta gamble.”

That sums up where we’re at to a ‘T’ I think. The only thing I’d add is it seems the younger you are, the more it seems to be your only hope. (Another way to look at it is we actually NEED a crash to cleanse the system.) Against my conservative grain I’m doing this using a HELoC too because I don’t see any other way to get into a house ever. I have a much more modest amount on the table. I wonder: Has this guy every actually experienced a margin call to know how easy it is on even a small drop?

#56 Shaggy on 03.21.22 at 6:24 pm

I take it back, I re-read your post and what AJ clearly is not using only a portion of his home equity, but instead is using the majority to access more funds. He’d be exposed to a real estate downturn, the inevitable increase in the variable rate HELOC, and a possible market downturn resulting in a margin call. Too risky with not enough cushion.

I do stand by my earlier comments about leveraging a portion of home equity at low-interest rates to invest, though.

#57 NOSTRADAMUS on 03.21.22 at 6:25 pm

LOOK TO THE RISING SUN!
Looking back at how pursuing policies that breed the Wealth Effect can slide off track or lose their effectiveness, we see it always centers on the risk they create. At some point, the combination of easy-to- borrow money at low interest rates tend to morph into a high-risk environment of increased speculation and leverage. In short, savers and investors seeking a return on their savings are forced out of traditional accounts because such investments get ravaged by inflation.
The Central Bankers in a brilliant move, came to the conclusion that flooding the market with liquidity (easy money) would solve all their problems by creating the wealth effect. History provides an excellent example of how this plays out in real time. Look to the rising sun, Japan would be the poster boy for this monetary madness.. The bottom line, when the sh*t hits the fan, people will come to realize that debt really does matter. I am on my throne and I will not step down.

#58 cuke and tomato picker on 03.21.22 at 6:26 pm

I would proceed with extreme caution we have done very well in real estate over the last 51 years by being very low and slow. Margin calls can set you back this happened to very talented friends of ours in 87, dot com,9/11, and 7,8,9 plus March 2020. They are fine but it has been nerve racking always scrambling for money during the down turns. Some nervous systems can handle risk others can’t. It is better to follow Garth’s
advice over the long haul.

#59 Reality Check on 03.21.22 at 6:26 pm

Poor Conspiracy Theory believers….

Covid is over and all mandates/controls are coming off. No mandate enslavement of us all, no injections of tiny little microchips, no mass depopulation, no Bill Gates as king of the world.

The convoluted world of the conspiracy theorists of covid Armageddon, secret world governments and alien lizard people has evaporated.

Next up for the conspiro instigators will be to figure out how Ukraine, Russia, Putin can be twisted into something that can spin magic blog/YouTube/podcast money.

Sad that some people actually believe that junk and make life decisions based on it.

#60 THE DANDADA on 03.21.22 at 6:32 pm

Scarred money don’t make money.

You gotta risk it to get the biscuit.

#61 Flop.. on 03.21.22 at 6:35 pm

#5 TurnerNation on 03.21.22 at 2:42 pm
#61 Flop… on 03.20.22 at 5:43 pm

^^ The 3.6l Chrysler/Dodge engine is a dud sez the Car Wizard. Cylinder heads cracking.
Start at 11:40. Earlier is the GM 3.6l…timing chain goes bust early. Why they (Terrain, Acadia) are so cheap in the used market.

https://www.youtube.com/watch?v=RCvKDr7DYYE

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

Thanks TN,I think yesterday I saw negative reviews on everything except rav4 and Honda CR-V.

I’ve been pulling up at traffic lights staring at people checking out their rides.

I think it freaked a few people out…

M47BC

#62 Chief Sail Away Critic on 03.21.22 at 6:35 pm

#37 Sail Away on 03.21.22 at 4:39 pm

Arsonist ..was not…linked to the convoy.

.:.:.:.:.:.

Curious, you “logically” came to this conclusion how exactly? The arsonist’s word seems to be about it but his bud is still AWOL, so he’s not exactly telling the whole truth is he? Proper course is to take no stance until more evidence.

Seems like you are grasping at an evidence-less narrative that you want to be true to match your world view and political desires. Curiously, this was the precise line of thinking your hero Jordan Peterson was an expert on and suggested not doing. Not that JP has ever taken his own advice, nor has he a shred of credibility… But I digress…

#63 Ballingsford on 03.21.22 at 6:47 pm

#55 Graeme on 03.21.22 at 6:23 pm
…Against my conservative grain I’m doing this using a HELoC too because I don’t see any other way to get into a house ever….
********
How are you using a HELoC if you don’t own a home?

#64 Sail Away on 03.21.22 at 6:49 pm

#23 Søren Angst on 03.21.22 at 3:48 pm
#13 Sail Away

Post your last 30 days instead.

My last 30 days Threadbare Portofolio:

+3.87%

+0.74% from yesterday. Low and slow and happy for it.

Live a little instead of Mr. 90 day performance swagger.

Let’s see you last 30 day performance swagger.

——–

Haha. Good work.

My Heloc was provided for an informational performance study, not swagger, although I am indeed partial to a bit of swagger from time to time.

It would take some time to compile and summarize overall portfolio 30-day and 60-day returns, and since I try to only show results for buys/sells I’ve already recorded in the comments section, that wouldn’t really be verifiable. Of the legit, recorded stuff… within my historical record, over the last 30 days:

My best appears to be NTR @ +40%
My worst appears to be LIF.TO @ -4.7%

It’s not a contest.

#65 Dr V on 03.21.22 at 6:53 pm

55 Graeme

“Against my conservative grain I’m doing this using a HELoC too because I don’t see any other way to get into a house ever.”
———————————–

This seems backwards. You need the house to get the HELOC.

#66 Dr V on 03.21.22 at 6:57 pm

54 56 Shaggy – long time no blog. Good points too.

I’m not reading where AJ is maxing his home equity (though he could be) so 54 may be quite valid.

#67 Horgan on 03.21.22 at 7:15 pm

Dave, relax.

Kelowna townhomes are very affordable for the Toronto money pouring in right now. It is mostly leveraged investment and investors don’t care what the price is for the townhome or how much wildfire smoke hits throughout the summer.

It is like the fish market. Get me 1, 2 or 3…just get me something. Townhome, Condo, whatever, they want in on it and will take anything they can get.

Kelowna isn’t Hamilton. Kelowna has been designated by the real estate cartel as the #1 investment community in Canada and will soon pass Vancouver on price. Rents already have. Basran can take most of the credit for showing ex Van city mayor Gregor how you can really pump up a city.

Land use zoning will continue to squeeze supply and demand, even though we have so much vast undeveloped land. Zero vacancy is by design.

Did anyone watch the CBC fifth estate over the weekend on renters? I highly recommend doing so to understand what is going on in Canada.

We balanced the BC budget on those property transfer taxes. Don’t dare touch the goose that lays the golden eggs. Keep those prices ripping.

#68 crowdedelevatorfartz on 03.21.22 at 7:16 pm

@# anslow
“…this should be interesting unless Garth is merciful enough to edit….”

+++

Garth shows no mercy.
I , on the other hand,shall.
:)

#69 Barb on 03.21.22 at 7:17 pm

Rupert looks to be one cool buddy.

AJ, sorry but I wouldn’t be able to sleep during the next 15 years.

#70 Brian on 03.21.22 at 7:25 pm

Stephen LeDrew is a lawyer, broadcaster, and the longest-serving president of the Liberal Party of Canada.

Trudeau has brought Canadians to the tipping point.
The Canada that Canadians now view every day is not the sensible, reasonable, and generous society that Canadians of all stripes have built up over many generations.

https://torontosun.com/opinion/ledrew-trudeau-has-brought-canadians-to-the-tipping-point

#71 Randy on 03.21.22 at 7:44 pm

I am the opposite of AJ when it comes to money, I am a young guy, 29, no debt at all, no credit card debt, no car loans period. I did not do to well in school and don’t have a trade by have always been working many jobs. I rent an apartment with a roommate so my rent is affordable $760 a month+utilities. I work two part-time jobs, I earn gross 52 hours a week $900 a week for 50 weeks a year $but take home net $654 a week. I have been working over 45-50 hour weeks for 9 years now and have managed to keep my expenses low to modest. This is why I have manged to save up in my RRSPs $49,000, $60,000 all in GICs, $10,000 in high interest savings account and $45,000 in all dividend paying bank, financial ETFs . I am saving on average 40% of my gross income which is only possible because of the RRSP tax refund I put back in my TFSAs each year. I don’t have a high risk tolerance at all and at max willing 30% into a investment with no guarantee interest rate and principal back. I think I am doing pretty good with a $45,000 a year gross income and my investments with dividends $4,000 a year in compound tax deferred, tax free interest and $2,200 a year in bank, financial paying dividends. I can see a day when I will replace most if not all my employment income with interest, dividends in the same amount, maybe 20 years from now.

#72 Ry on 03.21.22 at 7:53 pm

Hey Garth,

Long time reader here. You mentioned a disadvantage about VGRO as an ETF that owns multiple ETFs Within itself. Why is this bad? Shouldn’t that also help with diversification?

Thanks in advance. I appreciate your advice.

I did not say it was bad, just that investors need to know what they are buying. It’s a fund that owns funds. Not a fund that owns companies. – Garth

#73 Dogman01 on 03.21.22 at 7:57 pm

“You gotta risk it to get the biscuit!”

Deserved a repeat.

‘Shocking’: ESG funds piled into Russian oil over Canadian energy:
https://www.bnnbloomberg.ca/esg-funds-missing-the-mark-on-social-and-governance-cibc-analysts-1.1740710

“In the most shocking example we have come across to date, the ESG fund universe owned twice as much Russian oil and gas as Canadian oil and gas at the end of last year,”

ESG is just the Woke\Green Religious dogma being applied as a financial weapon.

Humans, wired for “religiosity” are replacing traditional beliefs with these made up “Science-ey beliefs”. All to feed an ego based need for feeling righteous.

As per all Organized Religions, the end goal is to provide the plebs with contentment with their work forever lives and to enrich and cement the power of the Established Elite.

Greenism – the new “opiate of the masses”

https://www.youtube.com/watch?v=SPY_SxyNB5M

#74 Shawn on 03.21.22 at 7:57 pm

Money Creation? Actually YOU (We) Did That.

#48 Brian on 03.21.22 at 5:42 pm

How the Bank of Canada Creates Money Through its Asset Purchases

https://lop.parl.ca/sites/PublicWe

******************************
The article sez what I been saying… the majority of new money is created when we all ya all borrow and not by the central bank.

From the article:

“The majority of money in the economy is created by commercial banks when they extend new loans, such as mortgages.”

If people and businesses start paying down debt instead of borrowing more, the money supply will decrease. Until then… To the moon…

#75 Faron on 03.21.22 at 8:16 pm

#68 crowdedelevatorfartz on 03.21.22 at 7:16 pm

Pretty hard to deliver farrtz by email. Thanks though! :-)

#76 just say no on 03.21.22 at 8:23 pm

Randy #71 real classy human! Very rarely do these types show up on here to share work ethics and saving styles. These are true types with no handouts or connections to the easy way. Stay the path and only like minded people will be good for you. Another decade and you will see the beginng of your dreams coming true. You are strong and it will happen! You will make higher income but live the same and retire at 45 if you want?

#77 Ronaldo on 03.21.22 at 8:26 pm

All I can say to AJ is you better have a very stable marriage because to me that is probably one of his greater risks (assuming he is married). If sweety decides to walk and wants her half of the equity in the house and nothing to do with your investments, look out.

#78 conan on 03.21.22 at 8:31 pm

Best to leverage zero at the moment IMHO.
Just the war in Ukraine is enough to do nothing.
FB down 26 % in one day. We could see more of that with other companies.

So much risk in play and that means market volatility.
Owning quality is key, knowing what you own , and how it will behave. These are all key.

#79 Logic and Reason on 03.21.22 at 8:33 pm

I say AJ should go for his plan. If we can buy a house with 5% down (used to be zero down) then why not this? Money is just not worth anything now thanks to our CBs and governments spending so treat it like monopoly money and go to town. Why not?

#80 Grunt on 03.21.22 at 8:43 pm

Despite all the noise in Europe I think the US is more focused on China. This leaves the dark UK plutocrats pulling oligarchs by strings to see who will domino.

#81 Cici on 03.21.22 at 8:45 pm

Really dumb idea, AJ. Especially given that most of the experts are predicting at least a decade of slow growth.

If you are going to leverage up to that extent, hire a professional and get proper diversification.

And read #13 Sail Away before you go all-in.

#82 All lies and manipulated on 03.21.22 at 9:02 pm

DELETED

#83 Barb on 03.21.22 at 9:11 pm

#76 just say no on 03.21.22 at 8:23 pm

Randy #71 real classy human!

Agreed. Couldn’t have said it better.
Well done, Randy.
Keep at it.

#84 Sail Away on 03.21.22 at 9:23 pm

#79 Logic and Reason on 03.21.22 at 8:33 pm

I say AJ should go for his plan. If we can buy a house with 5% down (used to be zero down) then why not this?

——–

Good idea, because even if it loses half its value, he can always live in his portfolio.

#85 salonist on 03.21.22 at 9:27 pm

ronaldo
doesn’t work that way
you are ready for the biggy,spittin assets, (married)
you provide your financials
your other provides financials and in most instances
a computer program called divorce mate spits out a resolution
used by lawyers, financial analysts and divorce mediators
there’s a bit of negotiating but only os the final settlement is 50/50

actually, if your inclined , any body can buy divorcemate.about $2000.00, 1 year
and you can dabble with the numbers
you can also sell access to your account by others

#86 Dogman01 on 03.21.22 at 9:30 pm

#70 Brian on 03.21.22 at 7:25 pm
Stephen LeDrew is a lawyer, broadcaster, and the longest-serving president of the Liberal Party of Canada.
https://torontosun.com/opinion/ledrew-trudeau-has-brought-canadians-to-the-tipping-point

—————————————–

“The freedom to differ, to voice, to offend, and to live our lives within the law, and not some person’s elite notion of what is good and bad, will return.”

I am not so sure Brian\Stephen; my fear is our established elite have crossed the Rubicon, they have thrown the citizen under the bus; with access to Surveillance Technology, control of the media, a bent to censorship, they represent a Global Elite and see their role is to manipulate the “ignorant” populace in the interests of their “enlightened” cabal. Soon we will see ESG driven Central Bank Virtual Currency leveraged in their interest.

Turner Nation is onto sometime, the trend is to less individual freedom and autonomy, nudging , social engineering and incrementalism.

#87 Flop… on 03.21.22 at 9:32 pm

“Mapped: Gas Prices in America at All-Time Highs.”

I remember being on tour in the States when gas was teetering on the 2.99 a gallon mark on the West Coast and people were having a cow back then.

What are they going to be doing in California at $5.86 a gallon?

Got cousins in the Bay Area who thought nothing of taking us out on the freeway for 30 miles to a nondescript greasy spoon for breakfast.

At the other end of the scale Kansas is the cheapest at 3.77, mind the gap.

If you look at the visualization the coffee brown coloured west coast is bad news for driving but I never really minded it because I was always driving with a purpose, on the way to see a relative or a national park.

I enjoy holidays in California but touring is mighty expensive there, staying in a State Park can be over 50 bucks US a night, I think we thought it wasn’t worth it anymore after 35 bucks a night.

I prefer staying in US Forest campgrounds anyway and you can still find some for free or $10 bucks a night, but I guess most nights you pay around 16 US or 20 CAD.

You overpay on the Western States, but The Rockies and The Cascade Mountains don’t care about gas prices, so if you want to camp in the mountains then you gotta cough up.

I coughed so hard I got a Hernia.

Maybe Kansas will get mountains after the next big one.

Looking at getting rid of one gas guzzler to get another one probably makes no sense, but you can thank The Tasmanian Board Of Education for my lack of practical thinking…

M47BC

https://www.visualcapitalist.com/mapped-gas-prices-in-america-at-all-time-highs/

#88 slick on 03.21.22 at 9:34 pm

As someone who has been on the shitlist of the margin clerk, $75 K is not enough cushion. This is not a matter of if, but when. Anyone in that position, knows the knot in your gut as you scramble to cover the cheque you just wrote to cover a margin call. I’ve had it about 3 times, and said ‘never again’

#89 crowdedelevatorfartz on 03.21.22 at 9:38 pm

@#75 faron.
No worries.
I’ve almost clicked the same info.

Speaking of info.
Are your Climate geek friends commenting among each other about the simultaneous temperature records at BOTH poles recently?

https://www.cnbctv18.com/environment/heatwaves-at-earths-poles-record-temperatures-30-40-degrees-celsius-above-normalworrying-12894562.htm

#90 crowdedelevatorfartz on 03.21.22 at 9:40 pm

@#71 Randy
” I work two part-time jobs, I earn gross 52 hours a week $900 a week for 50 weeks a year $but take home net $654 a week. I have been working over 45-50 hour weeks for 9 years now and have managed to keep my expenses low to modest. This is why I have manged to save up in my RRSPs $49,000, $60,000 all in GICs, $10,000 in high interest savings account and $45,000 in all dividend paying bank, financial ETFs . I am saving on average 40% of my gross income which is only possible because of the RRSP tax refund I put back in my TFSAs each year.”

+++

Impressive but I have one question.
When did Lt Commander Data get a first name?

#91 Satori on 03.21.22 at 9:56 pm

#67 Horgan

Thanks Horgan, I just watched it. Whoa!

Fifth Estate on Rental and Real estate market… eye opening!!

Here’s the link:

https://gem.cbc.ca/media/the-fifth-estate/s47e14?cmp=GEM_cbc.ca_homepage_shelfnew

#92 crowdedelevatorfartz on 03.21.22 at 10:03 pm

@#169 yvr lurker
“The only spike was property taxes zooming forward with our luney-tune YVR city council and mayor …”

+++

Yes.
I look forward to the Nov. civic elections and Kennedy Stewrats political demise.
One wonders how many months on the unemployment line before Stewrat calls in the favors owed at the NDP national headquarters.
I see an NDP hack appointment for Kennedy as a payout for letting Jaggy Singh take his seat.

Such is politics in the cesspool of the Left Coast.

#93 Rudolf Samoszynski on 03.21.22 at 10:08 pm

I did not understand most of this financial jargon.

#94 Common Man on 03.21.22 at 10:15 pm

I’m not going to comment on Trudeaus position on Ukraine until I’ve heard all sides of the argument. We’ve seen how Trudeau and his CBC minions are playing a game of lie and retract. Trudeau isn’t a reliable source, making his fight against Russian disinformation another of his twisted information campaigns. Without a reliable and honest source it’s impossible to decide.

#95 crowdedelevatorfartz on 03.21.22 at 10:19 pm

Wow.

10,000 Russian soldiers dead.
15,000 injured.
5 generals dead.
And no one knows whos in charge?

https://nationalpost.com/news/world/russian-defence-ministry-lets-slip-that-almost-10000-soldiers-have-been-killed-in-ukraine

Will Putin up the ante or will the Russian people say “enough”?

#96 Unpinned on 03.21.22 at 10:21 pm

AJ has that easily displayed “confidence” market pros warn us about century after century. The market has the force to teach us our overreaching in a blunt and rapid form. In the deep end of the margin pool conditions are not always what they appear.

#97 Doug in London on 03.21.22 at 10:23 pm

The time to take out a big HELOC to buy into the stock market was 2 years ago when everything was on sale, not now. If stocks go on sale again for some unforeseen reason then it will be time again to make such a move, otherwise forget it.

#98 TurnerNation on 03.21.22 at 11:07 pm

Get ready for a T3? What oh what do the Globalist Ghouls have planned for this poker chip country of theirs.

“Liberals, NDP have tentative deal that would keep Trudeau government in power until 2025
The federal Liberals and the New Democrats have worked out a tentative agreement that if finalized, would keep Prime Minister Justin Trudeau’s government in power until 2025… (ctvnews.ca).


>> Did I suggest this future back in MAY 2020? Add the rising interest rate.
Viva the Red Party. Viva Kanada.

#201 TurnerNation on 05.07.20 at 8:55 am
The new life in Kanada 2020:

– Wake up in your 350 squarefoot “Smart Condo”
– Eat your delivered breakfast ration and watch the State AM news update.
– You work at home for the banks, one of the few employers remaining.
– Your job there involves garnishing the wages of debtors. Initially you were apprehensive, one garnashee lives in your building even. But as time went on you become quite good at your job; achieving the most files handled per day. Your boss rewards you greatly.
– The corner of your PC screen has the live Covid numbers score. Win-Lost-Tied. You are pleased your Prefecture is keeping its numbers down.
– Evening is your delivered dinner; watching the State news PM update.
– Entertainment tonight is a virtual tour of a really cool place overseas your friend told you. So impressed were you that you made this place your new social media backdrop. It garnered many likes.
– You tend to your virtual anime dog – with its cheeky demeanor ; it has become so needy lately; you consider selling or trading it on the online market place for a more relaxing virtual pet.
– Next week you will vote online, for the Red party of course. They are the best choice as their actions resulted in very few new Covid cases this week.

#99 Faron on 03.21.22 at 11:19 pm

#89 crowdedelevatorfartz on 03.21.22 at 9:38 pm
@#75 faron.

Speaking of info.
Are your Climate geek friends commenting among each other about the simultaneous temperature records at BOTH poles recently?

Yes, those events are incomprehensibly absurd. My spitball on the data is that the antarctic event was a 5 to 7 sigma event which would put it as the largest global record break on… record when local variability is cinsidered. For reference, our heatwave was under 4 sigma. If it were a 7 sigma event, Lytton would have hit 53C!

I’d that kind of “heat” (was still well below 0 C) hit a couple months earlier, Dome C would have seen the first significant snow melt in more than 700,000 years. We know this because the ice cores show no isotopic fractionation consistent with melting.

Also, these are heatwaves associated with “Atmospheric Rivers” as was our June heatwave (the AR hit SE Alaska). The 1-2 punch is one you will hear more about in coming years.

Trouble.

#100 Ponzius Pilatus on 03.21.22 at 11:24 pm

Extra, Extra.

Liberals and NDP in power for another 3 years.
———————
Another prediction of CEF misses the target by a mile.

#101 Affordable Housing Matters on 03.21.22 at 11:36 pm

It pisses me off learning about these people like Kevin – showcased on the fifth estate rental crisis – who seems like a good guy, owns a dog and is getting completely swallowed by the debt leverage and greed in housing. And he is right, Trudeau has forgotten about renters.

I believe it will be this housing crisis that topples the Trudeau government. However, that alone won’t make it go away while the whole nation becomes Vancouver.

It shouldn’t be this way in a place with so much land.

#102 Doing my Part on 03.21.22 at 11:43 pm

The good news about a Liberal/NDP “coalition” till 2025 is that, by then we will be so far down the tube and feeling so much financial pain, they will get kicked to the curb.

#103 Shawn on 03.21.22 at 11:49 pm

Trudeau Was Elected fair and square – Deal with it

“Liberals, NDP have tentative deal that would keep Trudeau government in power until 2025

**********************************
Tough luck he was elected. And don’t bother telling me it was less than 50% of adults or voters. He (well really the liberals) was properly elected under the system we use.

And why 2025? I believe our constitution allows fully five years. Whatever four year thing they are using is legislation and/or so-called convention and can be changed.

On top of this the conservatives have not come up with an electable leader and show little sign of doing so. Deal with it.

#104 westcdn on 03.22.22 at 12:40 am

One thing about my mortgage renewal was the bank granted a discount of 0.25 percent for being loyal. Okay but it only amounts to $600 over 5 years but it was still a nice touch.

When I buy equities I look for cashflow and dividends. However people lie. So I do my homework and look for people with integrity. Not easy to find. I am still in the game and want to win. I should have been a hockey player if I wanted but I could not skate.

The changes looked slim so let us see what I can do (Canadian if you do not understand the lingo). So I found alternates. I will be a friend if I respect. Count on on my willing.

You don’t want to meet me in the dark if I hate you, which is rare. Actually I am quite kind, just not push.

#105 Millmech on 03.22.22 at 2:08 am

#84 Sail Away
If he knows what he is doing using that much leverage he would be stopped out at perhaps a 10% loss, but if the portfolio goes up and trailing stop is used and/or adjusted he may get stopped out with a profit.
If AJ has any sense with that much leverage, the out should be known before one gets in.
I would also put forward that AJ should step in with his theory at say 10k/mth for the first year and see if he is really ready for the psychological stress, that way if he is not ready or the market tanks it is only a small loss as he has 70k in reserve to float any small downturn.
Just my two cents!

#106 Summertime on 03.22.22 at 4:24 am

#48 Brian on 03.21.22 at 5:42 pm

How about purchase of mortgage backed securities collateralized through CHMC? It is basically a huge money gift from BoC to the banks that directly converts loans (promises of payment into the future) into money now, that slowly boils it’s way to the top of monetary pyramid resulting in many multiples through the magic of the fractional reserve banking system and renders the dependency on reserves when making loans and on deposits practically obsolete.

This is why you earn nothing on deposits but pay banking fees, as the new ‘money’ makes your deposits not needed to the banks at times when funny ‘inflation’ measures 6 % while in reality 15 %, felt by the poor as 20-30 % and rates are at 0.5 % with ‘serious intentions on increase’/laugher ensued here as we have been hearing this in the last 12 years, while ‘official CPI measures 38 % inflation total in the last 2 decades instead of the more realistic 300 % + when considering the prices of necessities and housing -housing expenses constitute over 50 % of household expenses, enlighten me of a place where prices have not increased at least 5 fold in the last 2 decades.

Do you know when a central banker is lying? His lips are moving.

#107 Summertime on 03.22.22 at 4:42 am

The statistics ‘inflation numbers’ of total 38 % for the last 2 decades would insult the intelligence of an ameba, it truly requires negative intelligence to believe any of it.

#108 willworkforpickles on 03.22.22 at 4:48 am

So the Fed J Powell is on a mission to really tackle inflation now.
He wants to raise interest rates by 50 basis points at both the May and June policy meetings, followed by four 25 basis point increases in the second half of the year. Fed chair says curbing high inflation is top priority for 2022
– Flags risk of war pushing inflation expectations too high.

“He doesn’t want to preside over another episode where they were too slow to act.”

“And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well,” Powell said.

“The Fed chief — who reiterated and elaborated on many of his key comments from last week’s press conference said Russia’s invasion of Ukraine is aggravating inflation pressures by boosting prices on food, energy, and other commodities “at a time of already too high inflation.”

Powell also described the economy as “very strong” and well positioned to handle higher interest rates.
——————————————————————————-

Above all else don’t fall for any of the above lies other than the possible .50 point raises.
The gullible masses will drink up every drop of this …..including many who comment here.

These Fed-speak statements are full of holes.

All of a sudden curbing inflation is a top priority. Its a Fed lie. If curbing inflation ever were a concern they would never have gotten us into this mess in the first place and would have tackled the rising inflation, even the threat of rising inflation with higher interest rates starting years ago already.
The Fed doesn’t want to preside over another episode where they were too slow to act? …Who the hell are they trying to convince (other than the gullible masses) with that one.
If its determined that there’s the need to tighten these common measures and take a more restrictive stance, then Powell says they will do that. Now that is a bold face lie (only the gullible masses could ever fall for). With the supposed full 2+ points interest rate hike planned for 2022, the deficit is going to balloon with higher interest payments that will have to be made and the economy itself won’t avoid a recession.

Never ever believe the lie (the gullible masses will) that a 2+ point interest rate increase will get inflation under control. Its not near enough and in fact will feed inflation more.

Fed-speak by Powell that the economy is strong and well positioned to handle higher rates fails to mention the bubble economy built on debt and not on the substantial levels of production of a healthy economy. That an artificial economy can’t take without reversing interest rates and going into the next round of QE. The next major round of QE will most assuredly bury us with more debt fall-out via more inflation with it. Without getting into all the details I’ve covered in previous posts, at any rate, this will set the clock ticking toward the ultimate debt crises and societal calamity to come.

Finally that leads me right to where the Fed places the blame for inflation inflation and more inflation. Squarely on the shoulders of the Russians currently … and on any other matter to shift blame anywhere instead of where the blame really belongs. And that is with the government and the Fed who created the debt to the point of no return to normalcy themselves. An increasing debt problem the lying Fed knows can’t be fixed. An inflation problem growing worse the lying Fed knows can’t be fixed.
And left with a duped and ill equipped gullible believing mass of people who won’t actually, really, be prepared before its all too late.

#109 dave leigh on 03.22.22 at 6:37 am

I asked a bank manager 30 years ago if using the equity in your home to leverage up to get a business (or stock portfolio) was a good idea and he said no. People don’t realize how had it is to start over if it does not work. I took that to heart. Mistakes are really shitty for your health, relationships.

#110 Sail Away on 03.22.22 at 7:16 am

A new day dawns. Well, in about 3 hours it will, anyway. 4:16am now (for my schedule-tracking fans) and on the go with a bunch of government contracts and standing offers to reconcile and roll into the new fiscal year. Infrastructure stimulus is a wonderful thing for infrastructure engineering firms!

@105 Millmech: yes, of course stop losses should be in place if exposed to a high degree. During crashes, it’s always fun to watch volume spike at the round numbers- 10%, 15%, 20%, etc., followed by another spike a percent or two later by vultching pros.

#111 Coalition of Fools on 03.22.22 at 7:58 am

Justin and Jagmeet will make Canada uninvestable.

It is a sad day for Canada.

#112 Sail Away on 03.22.22 at 8:07 am

Tesla has reached singularity as Master Plan 3 rolls out. Now unstoppable. SpaceX has much, much wider horizons.

https://www.google.com/amp/s/www.teslarati.com/tesla-elon-musk-master-plan-part-3-outline/amp/

My TSLA returns? Let’s go with fair to middlin’.

I personally carry as much water for Elon as possible… while wearing tailored camo cargo shorts, enjoying RC cola and moon pies, immersing myself in stunning whale murals and whipping up Denver omelets with the Slap-Chop. Class. Can’t buy it.

#113 Jane Finch on 03.22.22 at 8:52 am

Justin and Jagmeet have decided between them that democracy doesn’t serve either if them . You’d think Justin’s junior dictator move with the Martial Law thing failing so abruptly he might have learned….but sadly no. He’s dreamed up a bribery scandal with Jagmeet that ensures Herre Trudeau reigns supreme until 2025.

#114 crowdedelevatorfartz on 03.22.22 at 8:54 am

@#100 Ponzies pathetic political promises.
“Liberals and NDP in power for another 3 years.”

++++

Bwahahahaha
.
You actually believe that two political leaders will do what they “promise”?
Bwahahahahaha.
3 years is an eternity.
Trudeau will have this country flat, busted , broke looooong before that.
Lets see if the NDP “leadership” still has a spine when we’re crawling through a brutal recession and their polling numbers are in the toilet right next to the Liberals.
Rising interest rates, rising food, a “National” day care program floundering under the weight of its own bureaucracy like the national health care…

3 more years…..in your dreams.
Our economy cant handle 3 more years of multi billion dollar deficits.
Even if gullible voting accountants like you.. cant count

#115 Summertime on 03.22.22 at 8:54 am

#108 willworkforpickles on 03.22.22 at 4:48 am

Things must be really, really bad with the real inflation now that we have central bankers moving from calm lying to panic lying.

When central bankers tell you: ‘Rest assured, we have the tools to put inflation under control and every intend of using it’ it is likely already too late to run for cover.

Stuff is hitting the fan literally and accelerating.

Soon they will start prosecuting the people who scream ‘fire’, dog forbid the arsonists themselves.

So a few more posts and that’s it. Switching to reading mode, hopefully enjoying the crap show from the sidelines.
Everyone for themselves.

No schadenfreude, just sadness as stated by Steve Carell/Mark Baum in ‘The Big Short’, now coming in version 2.0 on steroids – the great inflation of 21st century.

#116 crowdedelevatorfartz on 03.22.22 at 9:05 am

@#99 faron.
“The 1-2 punch is one you will hear more about in coming years.”

+++

Yep.
The fact that both Poles were indicating record warm temps ( one in its “Winter” and one in its “Summer”.)
Is the alarm bell ringer.

I wonder if the melting icecaps will be an issue when the BC Govt cuts the ribbon on the new NDP tunnel under the Fraser River in below sea level Richmond in 8 years…..
.

#117 NDP: A Wholly Owned Subsidiary of the Liberal Party Of Canada on 03.22.22 at 10:03 am

I used to think that Trudeau was alone in his disdain and contempt for parliament and Canadians. I stand corrected. Jagmeet Singh is hot on his heels.

#118 James on 03.22.22 at 10:05 am

#114 crowdedelevatorfartz on 03.22.22 at 8:54 am

@#100 Ponzies pathetic political promises.
“Liberals and NDP in power for another 3 years.”

++++

Bwahahahaha
.
You actually believe that two political leaders will do what they “promise”?
Bwahahahahaha.
3 years is an eternity.
Trudeau will have this country flat, busted , broke looooong before that.
Lets see if the NDP “leadership” still has a spine when we’re crawling through a brutal recession and their polling numbers are in the toilet right next to the Liberals.
Rising interest rates, rising food, a “National” day care program floundering under the weight of its own bureaucracy like the national health care…

3 more years…..in your dreams.
Our economy cant handle 3 more years of multi billion dollar deficits.
Even if gullible voting accountants like you.. cant count
____________________________________________
I agree now we have a selfie loving narcissist incompetent leader with a Socialist dreamer who has never garnered enough votes to get his far, far, far leftist party elected. Now he sees a pathway to grab some scraps that T2 may leave on the table as he looks the other way. Crowded has it right 3 years is a long time in politics and with an 11 cent per litre carbon tax looming on April 1st the average person barely making ends meet isn’t going to appreciate another hit to the wallet. I can’t believe when I’m out driving in the hinterlands how many [email protected] Trudeau signs I have seen on homes and vehicles. Trudeau is truly a hated person now in this country. Singh may have hitched his wagon to a lame donkey!

#119 Dharma Bum on 03.22.22 at 10:14 am

In 25 years from now, most staples and necessities will be way more expensive. Housing, food, transportation, clothing, bank fees, materials, energy, etc.

Invest in companies that provide financial services, manufacture staples, industrials, consumer goods, food, vehicles, and produce and provide energy (utilities).

Stay invested.

Otherwise, you’re toast.

Yah – I know. Genius.

Nothing essential is going to be cheaper.

#120 Brian on 03.22.22 at 10:15 am

LIBERAL/NDP Coalition will advance a Socialist & Extremist Agenda, with no ADULTS in the room

Say goodbye to Canada!

#121 Ponzius Pilatus on 03.22.22 at 10:59 am

#28 Leichendiener on 03.21.22 at 4:13 pm
An acquaintance of mine father flew thirty-nine bombing missions as a navigator over Nazi Germany. The statistics of surviving were small. His motto was: never fly high, never fly low, never be the first in, never be the last out. And a common one: when you’re taking flak, you’re over the target.
——————————
Good advise for investors, as well.
Walk quietly amongst the crowd.

#122 Ponzius Pilatus on 03.22.22 at 11:02 am

#35 Dr V on 03.21.22 at 4:35 pm
If AJ has never seen the movie “Hall Pass”, he may want to check out this credits trailer. The premise of the movie is that two men are given a “hall pass” by their
wives to do whatever they wanted for a week. At the end of it all, their friend gives it some thought.

I mean, what could go wrong?

Warning, adult content.

https://www.youtube.com/watch?v=uiD0LfhQFlE&ab_channel=bb32e
——————-
Haha.
Not a lot of adults here.

#123 Quintilian on 03.22.22 at 11:05 am

The Hall of Shame
The worst in descending order of House price to income ratio OECD countries.

Netherlands
Canada
Czech Republic
Luxembourg
Portugal
New Zealand
Austria
Chile
Germany
United States
Hungry
Ireland
Spain

Trudeau is PM in only one of those contries, so it not his fault.

#124 Reckless oil prediction on 03.22.22 at 11:08 am

$300 oil?

Gotta like Russian TASS propaganda if you own oil.

As Greenspan once said “American ingenuity will come to the rescue”

#125 Liberal=NDP - FOREVER! on 03.22.22 at 11:08 am

Canada wins!

All problems solved!

#126 Ponzius Pilatus on 03.22.22 at 11:17 am

#119 Dharma Bum on 03.22.22 at 10:14 am
In 25 years from now, most staples and necessities will be way more expensive. Housing, food, transportation, clothing, bank fees, materials, energy, etc.

Invest in companies that provide financial services, manufacture staples, industrials, consumer goods, food, vehicles, and produce and provide energy (utilities).

Stay invested.

Otherwise, you’re toast.

Yah – I know. Genius.

Nothing essential is going to be cheaper.
——————
Wow,
Another Genius forecaster. You and CEF should form a club.
I still remember the BIG EXTRA combo at 3.99.
Was my favorite.
Shoulda have stocked up.

#127 Liberal=NDP - FOREVER! on 03.22.22 at 11:23 am

Pierre, Maxime, Jason Kenney – thank you all SO MUCH!

Your self-destructive divisiveness will GUARANTEE a TRUE CANADIAN Liberal/NDP government for generations!

And don’t forget to go and compete for all those Trucker Convoy votes, too, plus the anti-maskers! That will be terrific and will unite the conservative movement! PROMISE!

And Jason – Rachel’s comin’ back! Thanks to YOU!

#128 Ponzius Pilatus on 03.22.22 at 11:24 am

114 crowdedelevatorfartz on 03.22.22 at 8:54 am
@#100 Ponzies pathetic political promises.
“Liberals and NDP in power for another 3 years.”

++++

Bwahahahaha
.
You actually believe that two political leaders will do what they “promise”?
Bwahahahahaha.
3 years is an eternity.
Trudeau will have this country flat, busted , broke looooong before that.
Lets see if the NDP “leadership” still has a spine when we’re crawling through a brutal recession and their polling numbers are in the toilet right next to the Liberals.
Rising interest rates, rising food, a “National” day care program floundering under the weight of its own bureaucracy like the national health care…
———————-
You forgot.
Universal Dental Care is coming.
Then UBI.
Better double your blood pressure meds.
As you said : 3 years is an eternity.

#129 Diamond Dog on 03.22.22 at 11:28 am

#34 Shawn on 03.21.22 at 4:31 pm

It needed to be laid bare, good comment Shawn.

#130 Shawn on 03.22.22 at 11:35 am

For those interested in Money Printing and Money Supply:

Trick question: When is cash not considered money?

Answer: Cash on a commercial bank’s balance sheet whether in the vault, deposited with another bank or representing reserves at the central bank – none of these are counted as part of the money supply.

Why? Well consider this if you have a $10,000 deposit at the bank the deposit which appears on the right hand side of the bank’s balance sheet is available for you to spend and is counted as part of the money supply.

If the bank is holding your deposit and has not loaned it out, it is in the vault, deposited with another bank or is part of its reserves at the central bank. This is on the left hand side of the bank’s balance sheet. To count it again as part of the money supply would be double counting.

This in part is why Poloz claimed that the central bank buying bonds from banks did not increase the money supply. It resulted in the bank having more reserves at the central bank and that’s just not part of the money supply.

BUT the central banks caused interest rates to be extremely two and therefore caused tons of borrowing and THAT vastly increased the money supply.

#131 Sail Away on 03.22.22 at 11:37 am

#121 Ponzius Pilatus on 03.22.22 at 10:59 am
#28 Leichendiener on 03.21.22 at 4:13 pm

An acquaintance of mine father flew thirty-nine bombing missions as a navigator over Nazi Germany. The statistics of surviving were small. His motto was: never fly high, never fly low, never be the first in, never be the last out. And a common one: when you’re taking flak, you’re over the target.

——–

Good advise for investors, as well.
Walk quietly amongst the crowd.

——–

No can do, Ponz. Your gigantic noggin will always stick out. If you wear a hat, even worse.

#132 Damifino on 03.22.22 at 11:54 am

Remember when Justin went surfing in Tofino rather than attend a first nations reconciliation conference?

Conventional wisdom at the time was that he’d largely given up on his political future and thus no longer cared about appearances. Many were expecting Prime Minister Freeland to redeem his failures in due time.

All wishful but thoroughly misguided nonsense.

Last summer was a fantastic opportunity to clean house. It was squandered handily. Prime Minister O’Toole would have been a far better outcome than a J-squared coalition. I weep for this economy.

It really is everyone for themselves now.

#133 Diamond Dog on 03.22.22 at 11:57 am

#108 willworkforpickles on 03.22.22 at 4:48 am

https://www.youtube.com/watch?v=eW6aQfKyAnM

I have to laugh at this. “He (Powell) can’t catch a break. He hasn’t had any luck”. The Federal reserve’s rapid expansion of the money supply is the reason why inflation is 70’s era (when the Nixon government did the same thing).

Not hard to connect the dots here. Trump directed the Fed to print record amounts of money in an effort to buy an election under the guise of the pandemic:

https://www.longtermtrends.net/m2-money-supply-vs-inflation/

And here we are with purchase power eroding before our eyes in the form of inflation. Of course, what follows inflation is rate hikes followed by recession:

https://allstarcharts.com/wp-content/uploads/2011/07/7-23-11-10-yr-yields-FFR-and-inflation.jpg

There’s a sequence to it. Rapid increase in the money supply creates wealth effects (real estate, bonds, stock markets) in the form of m2. Extra money chasing the same goods and services jacks prices in the form of inflation. Inflation leads to rate hikes to suck money out of the supply (govy has no choice here, they have to consider the consequences if they don’t). Rate hikes lead to recession. Wash, rinse, repeat.

Bloated money supply, wealth effects, m2 pops, inflation follows, Fed rate hikes follow inflation, then recession. This is the order. There are no soft landings here unfortunately, not with inflation nearing double digits. For the first time in quite a while, the Fed is forthcoming but it comes late. Very late. The only question is when the U.S. recession hits and when commodities crash shortly before. That still comes down to m2. Commodities are doing great now, but only so long as there is U.S. growth. So, those who own Maple should be mindful.

#134 crowdedelevatorfartz on 03.22.22 at 11:59 am

@#128 Ponzie’s pharmaceutical prescriptions
“Universal Dental Care is coming.
Then UBI.”
++++

bwahahaha.
Justin’s kids will be in office before we see UBI or Dental.

How many years of Liberal election promises for universal daycare take? 30 years? 40?

Will the Liberal bureaucracy create “billing numbers” for the dentists and force them to work like the doctors.
The same doctors that are leaving in droves.
Dentists with excellent private sector offices dragged kicking and screaming into the govt embrace…

Dream on Ponzi or switch to organic mushroom meds.

#135 tkid on 03.22.22 at 12:15 pm

Mold house that was for sale at $400,000 went in a massive bidding war for $611,000. It needs bulldozing, has a tiny yard, and is a 2.5 hour commute from Toronto.

The house market is nuts.

#136 baloney Sandwitch on 03.22.22 at 12:44 pm

AJ would be crazy to pull a stunt like that. Margin upon Margin and the asset you are buying is not cheap either with markets near record high. Don’t do it, Man.

Any comment on the latest politics – T2 and the Jag teaming up to bankrupt this country further?

#137 Dr V on 03.22.22 at 12:47 pm

71 Randy – awesome job!

With a 40% savings rate, I see $8000 RRSP (max), $6000 TFSA (max) and $4000 non-registered savings per year.

Make sure to give careful consideration to future taxes. At your current earnings, the RRSP advantage is muted
as your income at retirement will probably be in the same tax bracket as now. It could even be higher.

Also, by lowering your RRSP contributions, you could
build some extra contribution room in case you land a
higher paying gig later on.

Or you could just build that big one and retire early!

Good luck!

#138 Faron on 03.22.22 at 1:05 pm

#131 Sail Away on 03.22.22 at 11:37 am

Can you please tell me [Garth] what you were up to between 5AM and 8:30 AM? Maybe one post per hour just to be sure sure we aren’t missing out. Really big help. Thanks pal.

#139 IHCTD9 on 03.22.22 at 1:11 pm

Trudeau wants out 2025. I don’t blame him either. Even he understands the damage his party has done is unfixable. Doesn’t matter who steps up, Canadians won’t stand for the cure.

Time to get a remote job, sell everything; and head up north.

#140 Daveyboy on 03.22.22 at 1:22 pm

lol

https://www.thestar.com/news/gta/2022/03/20/as-offices-reopen-some-torontonians-who-fled-to-the-burbs-are-seeking-second-homes-downtown.html

#141 Jen on 03.22.22 at 1:27 pm

I’m part of my local neighbourhood Facebook group in Toronto. One person posted that they got a HELOC for the largest amount the bank would give them, invested all of it and fund their renovations with the earnings from the investment. They are very proud of themselves for doing this.

To me this seems moderately insane! Maybe this is what the Mils are doing to afford their gut job renos.

#142 willworkforpickles on 03.22.22 at 1:48 pm

#133 Diamond Dog

“I have to laugh at this. “He (Powell) can’t catch a break. He hasn’t had any luck”. The Federal reserve’s rapid expansion of the money supply is the reason why inflation is 70’s era (when the Nixon government did the same thing).”

” Bloated money supply, wealth effects, m2 pops, inflation follows, Fed rate hikes follow inflation, then recession. This is the order.”

“Wash, rinse, repeat.”
……………………………………………………………………………………………………….

That overall synopsis is outdated and no longer applies.
Many people still haven’t gotten it yet that unprecedented levels of debt never seen before changes all the old rules.
There is no Wash rinse repeat anymore as there was when still sustainable Debt to GDP ratio’s were far lower in all previous recessions.
And yes, The Fed cannot catch a break for allowing it to get this far leaving no way out but a steady downward spiral to collapse.
I’ve gone over this maybe 30 or 40 times here in the past 2 years . Its only human nature that some people never catch on. It is different this time . Very different.

#143 Kitkat on 03.22.22 at 1:48 pm

I see that the idea of the collapse of the entire ETF investment vehicle has been abandoned.

#144 Sail Away on 03.22.22 at 1:50 pm

#138 Faron on 03.22.22 at 1:05 pm
#131 Sail Away on 03.22.22 at 11:37 am

Can you please tell me what you were up to between 5AM and 8:30 AM? Maybe one post per hour just to be sure sure we aren’t missing out. Really big help. Thanks pal.

———

5 – 7: reconcile company accounts for clients’ year-end
7 – 7:30: breakfast. Three 5 minute soft-boiled eggs with toast
7:30 – 8:30 kiss wife goodbye, pat dogs, bike to office (no rain!), acknowledge statue, brew coffee, check day’s schedule, welcome staff

#145 Dr V on 03.22.22 at 1:53 pm

140 Davey – article requires subscription, but this is not new. I’ve known people who live up island who got 1 bedders in Vic or Van and switch back and forth depending on work loads meetings etc

#146 Ponzius Pilatus on 03.22.22 at 1:56 pm

#131 Sail Away on 03.22.22 at 11:37 am
#121 Ponzius Pilatus on 03.22.22 at 10:59 am
#28 Leichendiener on 03.21.22 at 4:13 pm

An acquaintance of mine father flew thirty-nine bombing missions as a navigator over Nazi Germany. The statistics of surviving were small. His motto was: never fly high, never fly low, never be the first in, never be the last out. And a common one: when you’re taking flak, you’re over the target.

——–

Good advise for investors, as well.
Walk quietly amongst the crowd.

——–

No can do, Ponz. Your gigantic noggin will always stick out. If you wear a hat, even worse.
————————-
You mocking my heritage?

#147 Brian on 03.22.22 at 2:36 pm

Liberal’s deal with NDP puts bank tax back on the table.
3% surtax on profits over $1 billion would cost big banks and insurers millions a year

https://financialpost.com/fp-finance/banking/liberals-deal-with-ndp-puts-bank-tax-back-on-the-table

#148 The West on 03.22.22 at 2:36 pm

So, Trudeau and JagMeat have married in a ceremony overseen by his holiness, Father Schwab.

God help this country!

#149 All lies and manipulated on 03.22.22 at 2:39 pm

There a new villain out there so a great opportunity for our fake leader to grab more power in the name of stability. WHAT?! He’s got a better way of running the gov!?
Mr Singh says the greedy oil companies are the problem at the pump.
Absolutely clueless. I guess he doesn’t realize the taxes attach to the whole oil gas industry and at the pumps (and now carbon)not to mention the risk they take and capital that goes into exploration.
I guess he’d rather buy from Nigeria and other unethical dirty countries… He’s a first class fool.
Put a fork in it we are going no where good.

Mr Brand gets the big pic.
https://www.youtube.com/watch?v=mD-ioJM8v64

#150 IHCTD9 on 03.22.22 at 2:46 pm

#132 Damifino on 03.22.22 at 11:54 am
Remember when Justin went surfing in Tofino rather than attend a first nations reconciliation conference?

Conventional wisdom at the time was that he’d largely given up on his political future and thus no longer cared about appearances. Many were expecting Prime Minister Freeland to redeem his failures in due time.

All wishful but thoroughly misguided nonsense.

Last summer was a fantastic opportunity to clean house. It was squandered handily. Prime Minister O’Toole would have been a far better outcome than a J-squared coalition. I weep for this economy.

It really is everyone for themselves now.
____

Canada is going to have two distinct societies: Pre-Trudeau folks who got life on the go under smart politicians and sound policies, and Post-Trudeau folks who went nowhere under idiot policies and faux drama teacher politicians.

Us pre-Trudeau folks who are sitting on mountains of cash via RE and B+D’s – especially those drawing near to retirement – have zip to worry about. We won the lottery, and it looks like there could be more winnings to come with the J+J Express coming down the track.

I expect the smart post-T kids will be looking at their options to leave. They will understand that long after Trudeau retires, his disastrous leadership will continue ruining their quality of life for years to come. If they can’t leave, they will live QATM, save huge, spend little, and starve the beast. I wish them luck.

Then, there will be those who think Trudeau had nothing to do with their miserable condition. These I am grateful for. Someday I will need to sell my house, and I prefer to sell over asking to these folks who aren’t interpreting what is going on around them correctly.

#151 All lies and manipulated on 03.22.22 at 2:55 pm

REITs next under attack by T2 and crew!?
Good god anything they get their hands on it ends up a train wreck.
I know I’m rude and annoyed here sometimes but I really feel like we are circling the drain and our gov is out of control. Sad mad pissed.
https://ca.finance.yahoo.com/news/trudeau-power-pact-targets-canada-162454314.html

#152 Dr V on 03.22.22 at 3:08 pm

147 Brian

from the article

“For the first three quarters of 2021, the analysis found the tax would cost the banks approximately $1.12 billion.”

Not sure how many bank customers, but in the millions
if not 10s of millions. So maybe $100 each? The banks will make that up noooo problem.

This is the crap the politicians are feeding us. They want to tell canadians “see what we are doing for you” when
it really accounts for next to nothing.

Please review the post from the weekend regarding the banks.

#153 Diamond Dog on 03.23.22 at 12:34 pm

#142 willworkforpickles on 03.22.22 at 1:48 pm

I see your point. Historically it’s wash, rinse and repeat in reference to the charts but things have changed. I’ve made the same points on the fiscal side, we’ve hit a wall. It really is different this time as we’ve both said in the past.