Search found 5712 matches

by ghariton
26 Dec 2017 22:39
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Clippings 2017

Assume tax rate of 40%. Assume inflation rate of 10%. In a tax advantaged account, your RRB has kept up with the 10% inflation. In a taxable account, your RRB has kept up with 6% inflation. Please correct me, if I'm wrong. Look at it this way. On a pre-tax basis, RRBs keep up with inflation in both...
by ghariton
26 Dec 2017 22:18
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

Sometime in about 1980 I was trying to buy a house, prices were moving up $5000 a month. Yup. We moved to Ottawa at the end of 1972 and started looking for a house. But the prices went up an average of 25.3 per cent in 1973 and another 21.8 per cent in 1974. I felt we could never afford to buy. But...
by ghariton
26 Dec 2017 20:37
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

I grew up in an apartment in Montreal. It only had two bedrooms and we were three generations. But it was all we could afford. But that was common back then -- we were a community of immigrants, and had very little money. We didn't see this as a problem. If we are truly serious about climate change,...
by ghariton
26 Dec 2017 20:13
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Clippings 2017

But why would company owners borrow money if they didn't think they were going to make money on what they borrowed? That can happen for a short time. Alas, for publicly traded companies with no controlling block, it is not the owners' decision. Rather, it is a management decision. And that can be a...
by ghariton
26 Dec 2017 20:01
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Clippings 2017

But in Canada, there aren't many inflation indexed bonds, and those that exist are long duration. The issue isn't so much that RRBs are long duration. After all, the 2021 matures in less than four years. Rather, the problem is that maturities are spaced five years apart. In withdrawal stage, that m...
by ghariton
26 Dec 2017 16:31
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

Can't afford to buy a home? Rent and let the landlord assume the risk of owning a possibly overvalued asset. Or, move to a place where homes are reasonably priced. Or, stay in your parents' basement if they don't want you to move far away nor want to remortgage their home to provide the cash down o...
by ghariton
26 Dec 2017 15:47
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Drawbacks of Equal Weighted Funds

When the article mentions contrarian, it really is saying that equal weighted funds have a value tilt. It seems to me that they have a small (or smaller) cap tilt. Small cap is one of the Fama-French factors, independent of value. Of course there is nothing magical about equal weights. If one does ...
by ghariton
26 Dec 2017 14:33
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Clippings 2017

Actually, I would love to see an RRB sell off; I would just buy more*! Yes. That's what I did in November 2008, when real rates ofreturn on RRBs spiked to some 2.5 %. I had a long term target for the amount of RRBs I wanted to hold, and I reached the target that fall instead of several years later....
by ghariton
26 Dec 2017 13:44
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Clippings 2017

Is a bond bust more likely than an equity sell-off? The major drumbeat of asset class overvaluation has focused on equities, but perhaps a scarier place to invest is holding long duration bonds. Both asset classes may be overvalued, but a close look at the economic fundamentals may suggest that gre...
by ghariton
25 Dec 2017 18:44
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

If they actually worked here and were economically compatible, that would be ok. On my street we have two families where Dad works in Korea and visits 2x per year. Another couple are young retirees from Asia, two houses are owned by builders currently rented and one home is owned by absentee owners...
by ghariton
25 Dec 2017 17:02
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

What, pray tell, is a 'world class' city? And who decides it is 'world class' or what factors make it so. And how many of them are there exactly? As Lenin said a century ago, people vote with their feet. Some cities are magnets, people want to go and live there, whether for career opportunities, cu...
by ghariton
25 Dec 2017 14:10
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

1. House prices are determined by the laws of supply and demand. Why is all the focus on the demand side? 2. Demand side is driven by a mix of Canadian and foreign money. Why are certain people on this forum focusing on the foreign component? This makes no sense, assuming your real objective is to ...
by ghariton
24 Dec 2017 13:53
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

Let me get this straight: 1. Very upsetting: Chinese coming to Canada, sometimes bringing money into the country, buying houses, their kids excelling at school and getting degrees in accounting and engineering while not trying to blow up bridges. 2. Not upsetting: "refugees" being invited and cross...
by ghariton
23 Dec 2017 22:26
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Are we too old, crusty and conservative
Replies: 65
Views: 2534

Re: Are we too old, crusty and conservative

Speculation means making an investment with the expectation that you will get your return simply by selling it for a higher price, without this price being justified by fundamentals. Interesting definition. According to it, would a lottery ticjet be an investment or a speculation? After all, I don'...
by ghariton
21 Dec 2017 22:56
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

shut hard working, middle class Canadians out of the home ownership market. I suspect that a bigger impact on housing prices, right across the country and not just in FTA or GVA, is the tax-free treatment of capital gains on the sale of a principal residence. Here's a suggestion. Why not tax those ...
by ghariton
21 Dec 2017 22:47
Forum: Retirement, Pensions and Peace of Mind
Topic: TFSA Contribution 2018
Replies: 72
Views: 3244

Re: TFSA Contribution 2018

Ok, yes, working into one's 70s would be such a case. Yet, I suspect the investor would have filled both his RRSP and TFSA all along. I wouldn't sacrifice years and years of tax-free growth to avoid a small negative tax arbitrage. Fair enough. I do know one fellow still working in his seventies bec...
by ghariton
21 Dec 2017 22:31
Forum: Retirement, Pensions and Peace of Mind
Topic: TFSA Contribution 2018
Replies: 72
Views: 3244

Re: TFSA Contribution 2018

I'm still looking for the unicorn who doesn't save enough to fill both his TFSA and RRSP, and yet ends up in clawback territory in retirement (without having inherited the money). Some of us are still working at age 71, albeit part-time. On the other hand, my malpractice insurer defines "part-time"...
by ghariton
21 Dec 2017 14:33
Forum: Retirement, Pensions and Peace of Mind
Topic: Retirement - is it over-rated?
Replies: 296
Views: 18193

Re: Retirement - is it over-rated?

Retirement can be bad for your health. We already knew this, but there is new confirmation. The abstract : Social Security eligibility begins at age 62, and approximately one third of Americans immediately claim at that age. We examine whether age 62 is associated with a discontinuous change in aggr...
by ghariton
21 Dec 2017 14:15
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

Why not? If non-resident foreigners want to buy here and cause house prices to go up, it's an excellent opportunity for local residents to sell and realize nice tax-free capital gains. It becomes a good time to rent as non-resident foreigners will want to cut their losses by renting their propertie...
by ghariton
19 Dec 2017 14:06
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2017
Replies: 342
Views: 14993

Re: Housing Bust 2017

Statistics Canada has just released some data on non-resident home ownership in various Canadian cities. Here are the results for Toronto and Vancouver: Data from the CHSP revealed that non-residents owned 3.4% of all residential properties in the Toronto census metropolitan area (CMA), while the va...
by ghariton
17 Dec 2017 21:46
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 238
Views: 19968

Re: Investing styles

I think the same article was published on the clippings thread in Feb 2017 taken from a tweet from Norm. You're right, of course. I had forgotten that. From Norms website there was also a link to an article along the same vein about the positive skewness of the market being a contributing factor to...
by ghariton
17 Dec 2017 17:21
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 238
Views: 19968

Re: Investing styles

Jonathan Clements makes what I think is a powerful argument for very broad indexing across the total market. First of all, start with the fact, not very widely recognized, that a handful of stocks drive the market's return as a whole. It is thanks to them that market averages have grown so nicely. ...
by ghariton
17 Dec 2017 14:09
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Value Investing - do cheap stocks outperform?
Replies: 292
Views: 38276

Re: Value Investing - do cheap stocks outperform?

Gotta do something in my dotage and messing with the market keeps what little mind I have left fairly sharp. That's what my play money is for. I just mentally add two zeros to all trades, etc. As for Shiller's fears of indexing, I don't buy it. Large institutional investors, who actually have the s...
by ghariton
17 Dec 2017 12:39
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Clippings 2017

In a note to clients this week, he exhorts his economic brethren to stop the ridiculous prognostications, and instead, provide meaningful value to clients. And what form would that value take, pray tell? In my experience, economists can add value when addressing a specific client's specific problem...
by ghariton
14 Dec 2017 12:31
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 345
Views: 20677

Re: Clippings 2017

There's about one job vacancy for each unemployed American.
Unemployment vs vacancies.png
That's pretty close to full employment, even allowing for discouraged workers not in the labour force.

George