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.
Quote:
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.
Quote:
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.
Many countries have pulled gold back into their home country as opposed to leaving in foreign countries vault. Venezula of course was the most prominent one to do so....after all moving that amount of bricks is going to draw some media.
Most American's don't even know this. They think Federal Reserve is Gov't entity and controlled. it is not. And the Fed is also not the first time the US has had a central bank. The Fed is actually their 4th attempt at a central bank. Look up First / Second / Third central bank.
And US currency has been a fiat dollar for many years. Hence in God we trust. Everyone has to believe in the US dollar as it's a belief system.
Has anyone seen the new US $100 bill? No one has actually as it's not in circulation. Conspiracy theories abound as to why the Feds have not released it yet despite printing billions of them. Perhaps they are anticipating a reset of the currency and overnight ? 'tada new currency'. We all saw what happens when countries print money and inflation goes crazy. But note how much reference to gold in the new US $100 bill.
Now with the Feds printing 40billion a month indefinitely...of course that is going to juice the stock markets. After all we are well into the 3rd QE round. And quite frankly I say this is the 4th as they did bail out ECB as well. Except that was a bunch of zeros on someone's spreadsheet. The impact of all this money printing is it has to go somewhere. So of course it devalues the USD...but as long as the world economies believes in USD as being stable it doesn't matter right? After all religion only works because you have to believe in whatever it is fundamentally or it doesn't work. Same with currency.
So where does that leave us investors? Silver is a pretty good bet as it does have industrial value and it's low value still. But if the USD does get devalued you can bet Silver and Gold will go sky high overnight and panic for all. If not silver drops back to it's industrial value. Gold aside from jewellery doesn't do anything at all. Industrial use of gold is so little.
Real Estate market dropping...i for one hope so. I'd like to be the modern day Tom Vu. Who is old enough to remember his TV ads? Signs say yes but who knows...the last 10 years have proven the bubble bursting is impossible. Foreign money keeps flowing in we have a market. Local folks can't afford it just like Vancouver market.
Equity market unfortunately is highly distorted due to 3 rounds of QE. The indexes should not be as high as they are. So stock picking these days by a blind man leads to winners. but at some point the party will end. Note since 2008...and each round of QE the markets rose. Now they decided not to turn off the taps at all!!!!!
So like a game of hot potato whoever is left holding equity when the taps turn off ouch! Fundamentally yes the economy is crap....but the US Fed keeps juicing it with these QE. It pisses me off to no end as this is no longer capitalism! this is very socialistic. like bailing out car companies. in true capitalist society these companies would have received zero bail out.
fiscal cliff..whatever been an issue since the summer and these yahoos in washington just don't want to give into Obama hot off his election victory. they will get over it and do it right on the deadline and claim victory not because of Obama. So really it's a non-issue.
Value stocks...who is left? not sure. As others have said many over valued stocks in the market now all thanks to 3rd round of QE.
As for RIM...you gotta like vegas to touch RIM IMO. BB10 sucks and an OS doesn't make a device as demonstrated by OS/2 - if the young'uns recall that.
It's going to be the biggest flop. They waited a year for this shit, and the best they have is a phone that looks like a black brick.
Oh the security.. Ohhh. Really? Wow, what's so secure about their phones? I can encrypt my SG3. Not only that, I have access to a million apps and a super fast phone.
But wait, Blackberry 10 is fast too. But who cares? I already have a SG3. Everyone has an SG3 and an Iphone 5 or 4S now..
RIM is late to the party. Their market share is in the gutter. The global market place that they tout as being their saving grace is only a matter of time before that changes too. Remember 4 years ago, everyone here had a BB. The other countries are just behind.
So I was doin a lot of reading yesterday and did watch some videos off of Peter Schiff and others. I want to buy silver from the bank and looked that up.. looks like people are having lots of problems buying silver (especially from TD and Scotia Bank) .. you can get it on as a certificate but on the back it says they charge for storage and if you ask for it in bullion they say the smallest amount they will ship is 1000oz (i think that was the number) and they dont usually have it anyway .. they play a run around game with you on that.
ugh .. forex and communities is where I might have to stay to not deal with the bullshit.
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Scotia Mocatta downtown Toronto sells gold and silver bullion. You can walk in with cash and out with silver coins. Any amount you want. Makes sense to buy more then $1000 worth because of their processing fee or whatever. The fee makes small purchase average up too high to make sense.
Scotia Mocatta downtown Toronto sells gold and silver bullion. You can walk in with cash and out with silver coins. Any amount you want. Makes sense to buy more then $1000 worth because of their processing fee or whatever. The fee makes small purchase average up too high to make sense.
actually i found a place .. Canadian dealer list right off the royal canadian mint website ..
I bought 2 silver 5 ounce coins from Scotiabank downtown the other day. I bought a USD quarter, 5 ounch. It was $180 for each after you factor in exchange to USD + the $5 commission they charge.
It cost me about $36 per ounce, which was at the time, $3 over spot price.
Rather steep. However a) Scotiabank will always buy it back from you.
The larger the denomination you buy, the lower the spread, so a 10 ounce bar/coin would probably yeild you between $34-35 per ounce.
The other option is buy certificates. You can do that online with most brokerages, but they usually have a minimum of like 500 ounces, etc.
If youre going to buy the physical metal, I suggest buying the minted coins, either from CAnda or the US. Reason is that the government can make it illegal to own the bars, but they can't make it illegal to own their own currency - which a silver minted coin is.
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.
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.
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.
I agree, but at the same time, it will take time before USD dollar collapses.
RIM is not going the way Apple did,Apple covers all aspects of consumer electronic addiction RIM is relying on BB10 which is already a year behind.RIM already has two big time sell currently by two Wal Streetl firms and a value of only $8.00.It will move on speculators only the true value is the patents,they worth more sold in parts than as a whole company.
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Think about it, there is lots of good land in Canada... But, $300,000 for a 1 bedroom condo? LOL
I would say the housing market is artificially inflated right now as well. Once interest rates go up housing prices will go down along with a ton of people defaulting on mortgages they should have never had.
pricing are actually up %.02 this quarter in Toronto..condos arent selling well but pricing is still very solid very little panic selling.The desirable detached houses in Toronto are moving but takes much longer DOM.Im still looking for a hardloft for less than $350k,seen a few in not so desirable areas and missed out a few in good areas.Timing is the key and a good agent....I will put my money on drug companies and upcoming oil companies as a semi risky investment for 2013.Even a 3/4 spike in interest most home owners can still afford it and the 2013 growth for Canada by RBC is %2.7 which is great.
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.Never banned but came very close..three times
Who is old enough to remember his TV ads? Signs say yes but who knows...the last 10 years have proven the bubble bursting is impossible. Foreign money keeps flowing in we have a market. Local folks can't afford it just like Vancouver market. 
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