Comments on: This and That http://www.canadiancapitalist.com/this-and-that-80/ Helping you invest and prosper Sat, 11 Feb 2012 12:40:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: RateSupermarket.ca http://www.canadiancapitalist.com/this-and-that-80/#comment-134130 RateSupermarket.ca Mon, 19 May 2008 09:35:46 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-134130 rates have come down since this post after the BoC cut rates in late April. you're looking at a closed variable rate starting at 2.24% and closed fixed 2 year at 4.79%. rates have come down since this post after the BoC cut rates in late April. you’re looking at a closed variable rate starting at 2.24% and closed fixed 2 year at 4.79%.

]]> By: Phil S http://www.canadiancapitalist.com/this-and-that-80/#comment-119997 Phil S Sat, 08 Mar 2008 18:23:00 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119997 Hi FP. My first comment was regarding a temporary bottom on Bank of Canada interest rates, not the stock markets. Regarding the TSX index, I have no idea if we're at the bottom or not... We might be at or near the bottom if the US economy starts showing signs of a turnaround when they next report in June-ish. On the other hand, if their economy continues to slow down, then "look out below"! The complete irony is that I am pessimistic enough about the market to be fearful of putting more money into equities - but at the same time, I'm not pessimistic enough to short the market! What a dilemna! I don't know if you play much Texas Hold'em Poker but investing in the current market conditions is very much like guessing whether your opponent (the broader market) has a stronger hand or not - you can see some of what's sitting on the table, but the key to everything is very well hidden! So far in 2008, I've lost every hand I've bet on, so you should definitely take my opinion with a grain of salt! Hahaha... Luckily I don't reach retirement for another 25 yrs, so the cards that I'm holding (ie. the stocks I bought in Q1 2008) may still be useful in the coming 25 years. Hi FP. My first comment was regarding a temporary bottom on Bank of Canada interest rates, not the stock markets.

Regarding the TSX index, I have no idea if we’re at the bottom or not… We might be at or near the bottom if the US economy starts showing signs of a turnaround when they next report in June-ish. On the other hand, if their economy continues to slow down, then “look out below”! The complete irony is that I am pessimistic enough about the market to be fearful of putting more money into equities – but at the same time, I’m not pessimistic enough to short the market! What a dilemna!

I don’t know if you play much Texas Hold’em Poker but investing in the current market conditions is very much like guessing whether your opponent (the broader market) has a stronger hand or not – you can see some of what’s sitting on the table, but the key to everything is very well hidden! So far in 2008, I’ve lost every hand I’ve bet on, so you should definitely take my opinion with a grain of salt! Hahaha… Luckily I don’t reach retirement for another 25 yrs, so the cards that I’m holding (ie. the stocks I bought in Q1 2008) may still be useful in the coming 25 years.

]]> By: Phil S http://www.canadiancapitalist.com/this-and-that-80/#comment-119828 Phil S Sat, 08 Mar 2008 01:04:38 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119828 Hi Traciatim. Unfortunately, my fairly recent investment thesis concerning protecting against inflation has proved me wrong... I thought it would be a wise move to invest in the stock of businesses which cause inflation, such as rent (real estate), food, utilities, etc. But so far, those positions I took have been absolutely pummelled along with everything else, so I'm totally wrong on that investment thesis. And my real return bonds are based upon the "core CPI" which is some ridiculously low percentage. Inflation is the enemy of traditional bonds, as it eats into your total returns. So... I'm totally stumped as to where to put my "new" money. As a result, so all my new money is just sitting around gathering dust in GICs until I figure out where I should be putting it to work... Hi Traciatim. Unfortunately, my fairly recent investment thesis concerning protecting against inflation has proved me wrong… I thought it would be a wise move to invest in the stock of businesses which cause inflation, such as rent (real estate), food, utilities, etc. But so far, those positions I took have been absolutely pummelled along with everything else, so I’m totally wrong on that investment thesis. And my real return bonds are based upon the “core CPI” which is some ridiculously low percentage. Inflation is the enemy of traditional bonds, as it eats into your total returns. So… I’m totally stumped as to where to put my “new” money. As a result, so all my new money is just sitting around gathering dust in GICs until I figure out where I should be putting it to work…

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/this-and-that-80/#comment-119736 Canadian Capitalist Fri, 07 Mar 2008 19:39:16 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119736 Phil, Traciatim: The BoC statement mentions that the economy is operating above capacity which would normally mean an interest rate increase or neutral stance. But, the Bank is worried about the US slowdown and it sees inflation on target at around 2%. That's why the Bank says further easing is in the cards. Of course, they might change their stance between now and the next meeting. pessimist: My understanding is the same as Mike. Capital gains are owed on taxable portfolios and RRSPs are assumed to be melted down. Phil, Traciatim: The BoC statement mentions that the economy is operating above capacity which would normally mean an interest rate increase or neutral stance. But, the Bank is worried about the US slowdown and it sees inflation on target at around 2%. That’s why the Bank says further easing is in the cards. Of course, they might change their stance between now and the next meeting.

pessimist: My understanding is the same as Mike. Capital gains are owed on taxable portfolios and RRSPs are assumed to be melted down.

]]> By: Traciatim http://www.canadiancapitalist.com/this-and-that-80/#comment-119725 Traciatim Fri, 07 Mar 2008 17:50:09 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119725 Hey Phil S, I agree with the BoC thing. I don't understand why they are cutting rates since jobs are up, wages are up, inflation is looming unless you take out everything people buy. Unless we see some serious job slashing I don't think even this cut was needed, we may see higher rates around the corner. Hey Phil S, I agree with the BoC thing. I don’t understand why they are cutting rates since jobs are up, wages are up, inflation is looming unless you take out everything people buy. Unless we see some serious job slashing I don’t think even this cut was needed, we may see higher rates around the corner.

]]> By: FourPillars http://www.canadiancapitalist.com/this-and-that-80/#comment-119719 FourPillars Fri, 07 Mar 2008 17:44:39 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119719 Phil - everytime you leave a comment here saying that you don't think we are at the bottom - the market falls more. Maybe you could let us know when you don't think it will fall more?? :) pessimist - I am not an expert on this but I believe that in Canada, the estate of the deceased is taxed so any equities that have capital gains will be taxed before you get them. Given this fact it doesn't matter if the stocks are transferred "as is" to you (or "in kind" as we like to say) or if you just get the cash... Hopefully someone else will clarify this. Mike Phil – everytime you leave a comment here saying that you don’t think we are at the bottom – the market falls more. Maybe you could let us know when you don’t think it will fall more?? :)

pessimist – I am not an expert on this but I believe that in Canada, the estate of the deceased is taxed so any equities that have capital gains will be taxed before you get them.

Given this fact it doesn’t matter if the stocks are transferred “as is” to you (or “in kind” as we like to say) or if you just get the cash…

Hopefully someone else will clarify this.

Mike

]]> By: pessimist http://www.canadiancapitalist.com/this-and-that-80/#comment-119718 pessimist Fri, 07 Mar 2008 17:27:05 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119718 CC, I have a question. I understand that Canada has no inheritance tax (am a new Canuck so this is all very new to me). If I inherit a bunch of equities (non TFSA), then I pay capital gains on them even if I want to hold on to them? Thanks. pessimist CC,
I have a question. I understand that Canada has no inheritance tax (am a new Canuck so this is all very new to me). If I inherit a bunch of equities (non TFSA), then I pay capital gains on them even if I want to hold on to them? Thanks.

pessimist

]]> By: Phil S http://www.canadiancapitalist.com/this-and-that-80/#comment-119717 Phil S Fri, 07 Mar 2008 17:26:51 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119717 Actually, after today's outstanding Canadian jobs report, the markets aren't quite so certain that the Bank of Canada is going to keep cutting rates. We might have found at least a short term bottom on Canadian interest rates. It seems as though predicting BoC's interest rate policy is like predicting where the stock market indfex is going to go... Nobody really knows, but if you have enough people out there guessing, then somebody's going to be right. Actually, after today’s outstanding Canadian jobs report, the markets aren’t quite so certain that the Bank of Canada is going to keep cutting rates. We might have found at least a short term bottom on Canadian interest rates. It seems as though predicting BoC’s interest rate policy is like predicting where the stock market indfex is going to go… Nobody really knows, but if you have enough people out there guessing, then somebody’s going to be right.

]]> By: Michael James http://www.canadiancapitalist.com/this-and-that-80/#comment-119691 Michael James Fri, 07 Mar 2008 13:41:28 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119691 Thanks for the links. If my grandmother has any more good financial analysis, I'll be sure to pass it along :-) Thanks for the links. If my grandmother has any more good financial analysis, I’ll be sure to pass it along :-)

]]> By: WhereDoesAllMyMoneyGo http://www.canadiancapitalist.com/this-and-that-80/#comment-119540 WhereDoesAllMyMoneyGo Fri, 07 Mar 2008 03:11:23 +0000 http://www.canadiancapitalist.com/2008/03/06/this-and-that-80#comment-119540 Thanks for the mention CC - have a great weekend. Preet Thanks for the mention CC – have a great weekend.

Preet

]]>