Originally Posted by sirex
I think that Canada is going to be hit hard in the housing market.
Condo's will be severely impacted (they already are). While anectodes aren't consider facts, what I've been seeing alot of, are people selling their homes 10-20K below asking price, sometimes more. This is becoming a common occurence - go back a few months and that was unheard of.
The Toronto area, downtown core for housing, I don't see being that heavily impacted - for houses. However condos will be hit hard.
Vancouver is a disaster.
As for investment ideas. I agree with Silver and Gold. The other option are bank stocks. They still recording record profits. And they are in a position to win every scenario.
a) If people fore close their homes, majority at insured for default by CMHC and GE.
b) If rates go up, the bank will have a higher spread.
I agree with alot of what you said...but not about buying bank stocks. IMO they are way to vulnerable in our current economy. When the USD collapses, bank stocks will plummet.
Originally Posted by 325isdan
Im sure a real investor will tell you gold is not a wise investment as it has no true value. The value of gold is purley speculation.
Not really. Gold is a hedge against the dollar. When the dollar goes down gold goes up. Gold has been the cornerstone of power since civilization begun. "He who holds the gold, rules the lands". Paper money was created as a representation of physical gold being held in the bank. Back in the day you could actually take your paper money to the bank and exchange it for physical gold. If the dollar crashes, we will be back to the stone ages, where you will be able to buy a cow to feed your family with an ounce of gold.
Originally Posted by damameke
I dont see forecloser for rates wil remain low till 2014, at least
Condo wil still sell for houses are selling beyond what 1st time buyer can afford...
Dow is performing much better than the TSX for the past year (look at the DOW index 13 thou plus).
Peter Schiff is a doomsayer, he was wrong in predicting gold, gold has came down from its high of 1900 to 17 plus...look at all the Gold producers, their stocks has took a beating.. silver is performing better ..
Gold is an hedge against US dollar but it is not true anymore, some days you see weak US and weak Gold futures.
So as an investor what do you do?
buy low.. sell high...
buy all the banks(TD,BNS,RY, i like BMO, CIBC) (but dont buy now, it is pricey)
dont buy oil but buy pipelines, (Enbridge, TRP, Inter pipe line)even if oil is low, they still need pipeline to transport
TRP(transcanada pipeline Obama will approve this, this term)
buy gold etf(XEG)
buy reit(RIOCAN, too rich now)
and finally buy a lot of RIM...remember Apple at $8, it is $600 recently...
and buy Lotto Max...you never know...
LOL Yes the call him Dr.Doom in the mainstream media. But he is actually Dr. Truthsayer. He says what others are afraid to say. He was right in 2001-02 when he predicted the market crashing. He was telling people to buy gold then when it was below $500/ ounce.
Gold is not something you buy to flip the next day. The fact that it went to $1900 and then slowly fell to $1700 means nothing. Investing in gold is a waiting game. People who bought before 2007-08 have doubled their investment as of today. Hold onto it and it may be at $3000-$5000 an ounce by 2020.