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This and That # 116: Thank goodness October is over

October 31st, 2008 ·

  1. The S&P 500 was down 18% in October and the TSX Composite fell 16% in October. Other equity markets are down sharply as well. The bulls and the bears debate if stocks are the bargain we think.
  2. Bottom watching is a favourite sport on Wall Street these days. Jason Zweig writes in Wall Street Journal that it is impossible to get a positive ID on capitulation.
  3. Principal-protected notes have been roundly criticized and deservedly so. Now, not only are some of these products are going to return the principal back and nothing else but, to add insult to injury, they may also be subject to an adverse tax ruling by the CRA.
  4. One silver lining in falling stock prices is rising dividend yields, writes Dividend Growth Investor. The yield on the S&P 500 is now just over 3.2% (though the full effect of many dividend cuts will be felt over the next year). The yield on the TSX Composite is also over 3%.
  5. Ellen Roseman provides a guide to CDIC protection — which accounts are eligible and what is covered.
  6. Gail Vaz-Oxlade says that everyone really, really, needs a budget.
  7. Million Dollar Journey on how a lower loonie will affect Canadians.
  8. Preet presents a collection of famous quotes on investing.
  9. Michael James notes that seniors in Ontario can look forward to break on their property taxes next year.
  10. Dividend Guy shares his main investment objective: to generate a reliable, growing stream of income from stocks.

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9 responses so far ↓

  • 1 Michael James // Oct 31, 2008 at 7:06 am

    Thanks for the link. I’m not much for short-term predictions, but I’ll go out on a limb and say that the odds that November gives better stock performance than October is at least 90%.

  • 2 Million Dollar Journey // Oct 31, 2008 at 7:50 am

    Thanks for the mention CC, enjoy the weekend!

  • 3 WhereDoesAllMyMoneyGo.com // Oct 31, 2008 at 10:01 am

    Happy Hallowe’en CC! Thanks for the link. Any interesting costumes for the boys? Fiona is going as “partly cloudy with a chance of rain” to work. She put some cotton balls all over a grey t-shirt and a cut out of the sun poking out from one of the clouds and she’s carrying around a spray bottle, so when any asks she will spray them. She’s nuts… :)

  • 4 Canadian Capitalist // Oct 31, 2008 at 10:41 am

    Michael: I think November will be better as well. But I hope it won’t be good because I want to keep buying at low prices.

    Preet: That’s very creative. We went the store-bought route this year: I’ll be tugging along one cow and one deer. Both have tails and it cracks up the boys no end — “Hey, look at your tail!”. It’s going to be very pleasant day too — life’s good!

  • 5 Nabloid.com // Oct 31, 2008 at 6:19 pm

    The Canadian loonie won’t be low for too long. Long-term, our currency is very well positioned to overtake the USD. Just looking at the fundamentals. U.S. has major problems, much worse than Canada.

    Happy Halloween!

  • 6 Tony Danza // Oct 31, 2008 at 7:45 pm

    I hope you’re right Nabloid because I’d love to pick up more US companies at par. However I think you’re overly optimistic, deflation is a killer for commodities dependent economies. Not only that but if your biggest trading partner is in such bad shape how is that good for you?

  • 7 Big Cajun Man // Nov 1, 2008 at 10:25 am

    And the nice part about these low prices is if you are in a DRiP you get lots more stock for your drip!

  • 8 Nabloid.com // Nov 1, 2008 at 6:27 pm

    @ Tony Danza: I don’t see deflation becoming a major issue. I see inflation being a major issue in the future… I take a very long-term view… fiat currencies don’t fare well, especially with inflationary pressures, which I believe will arise. The government of the US will continue to overspend for a long time. Minimum wages are going to go from $6.55 to $9.50… a huge rise. Yes, the economy will suffer, but I think we may have stagflation. Guess time will tell. Either way, Canada is one of the richest countries on the planet when you really think about our vast resources…

  • 9 Dividend Growth Investor // Nov 1, 2008 at 9:31 pm

    CC,

    Thanks a lot for the mention. I really wish that dividend cuts in 2009 will be concentrated mainly in the financial sector, however recent evidence from companies like Carnival Cruises suggests that the economic crisis could affect more dividend payers..

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