So we are all aware of the SVB issues over the last little while, and how it is spreading to have a negative impact on a lot of the bank stocks. I noticed one bigger reaction to the shares of Charles Schwab (SCHW) yesterday and today (down close to 22.5% in 2 days: That seems to be triggered by a large block sale of 8.5M shares of Schwab:
Did TD exit its position? Or is this some other activity? What do you think the impact is on both Schwab...
Under the heading Creative Accounting and this is ain't unique to Uber
If you Google “Uber earnings,” you get a wall of articles with “strong quarter” in the title. Indeed, in the fourth quarter of 2022, Uber's revenues were US$8.6 billion, ridership was at an all-time high and “adjusted EBITDA,” the company’s fantastical measure of profitability, was positive.
To be more specific, Uber earned US$665 million before interest, taxes,...
Reported in gizmodo.com: Crypto Exchange Says It Can't Repay $190 Million to Clients After Founder Dies With Only Password and The Guardian .
Canadian crypto exchange QuadrigaCX says it cannot repay most of $190 million in client holdings after its 30-year-old founder Gerald Cotten, the only person who knew the passwords to its “cold storage,” unexpectedly died in India in December 2018, Coindesk reported on Friday.
I've recorded a YouTube video trying to explain crypto currencies for seniors and laypeople. Thanks for watching and I'd appreciate any comments but remember I'm trying to keep it simple.
I get the impression from reading posts that some investors are using the playbook from 2008 and buying stocks aggressively to the point of using all their free cash. Going all in if you will.
Why? Are you convinced that markets always rebound, business doesn’t go bankrupt, or markets won’t stay flat for decades (Japan) or slowly decline.
There are a lot of firsts out there
1. Negative oil Prices
2. Potentially the first true world recession,...
SINGAPORE (Reuters) - Oil prices have fallen as much as $16 from their peaks, their steepest reversal in 16 years, in a correction that traders say may be harder to shake off than past setbacks in the market's four-year rally.
In real terms Brent has fallen $16.02 since it hit a high of $78.65 on August 8. This marks its biggest decline from peak to...
Day Traders as ‘Dumb Money’? The Pros Are Now Paying Attention (WSJ)
Fund managers who might have once derided small-time day traders as “dumb money” are scouring social-media posts for clues about where the herd might veer next. Some 85% of hedge funds and 42% of asset managers are now tracking retail-trading message boards, according to a survey by Bloomberg Intelligence.
JPMorgan Chase & Co. in September introduced a new data product that...
Often you will read something like analysts say an 80% chance of a 25/50/75 basis point increase in the Bank of Canada rate. What is this based on? Do they compare the 30 day t-bill rate to the current bank rate? If the bank rate is 3% and the comparative rate 3.25%, does that mean a 50% chance of a 50 bp rise?
Quite a story. A mixture between Barings collapse, “The Wolf of the Wall Street” and Madoff. SBF is surely going to prison for a very long time and also has a Netflix TV series made about him.
A long story but quite simple really. An over leveraged youngster played in the wild west of unregulated securities and ended up prosaically stealing his clients’ assets to cover up the losses. He was also using his own tokens to bring in money as part...
1) Warren Buffett, has raised its stakes in each of Japan's five biggest trading houses by at least 1 percentage point to more than 6%
2) Berkshire's increased investments in the trading houses come as it bought more than $4.1 billion of stock this month in Taiwan Semiconductor Manufacturing (2330.TW)
Strong US dollar probably only part of this, right?
Can anyone please share a creditable and worthy place to read or view information about whole life policies and so called infinite banking? Seems like a buzz word that has entered my sphere, and I don't want to just write it off without some due diligence.
He says the New Democrats want to see key elements of the deal, such as a $500 one-time top-up to Canada Housing Benefit, and more funding in dental care.
The NDP is also watching for more funding for Indigenous housing, home energy efficiency and moves toward a surtax on the profits of banks and insurance companies in the budget, which is expected to be tabled...
Thorp has been mentioned about a dozen times on FWF in various threads relating to his blackjack, roulette and stock market prowess. I was recently listening to an episode of the Rational Reminder podcast and a guest brought up this interesting interview featuring Thorp on Tim Ferriss’ podcast from a few months back. Found it quite interesting and figured others here would also enjoy it.
Despite the Youtube thumbnail there is very little about...
Liz Truss, the new British Prime Minister, kept her promise and cut taxes at the best possible time . With inflation running super hot, energy crisis and fiscal consequences of Covid, it was not at all obvious that vague noises about increasing budgetary revenue were going to work. As a result Guild investors lost confidence and bond prices tanked within 1 week. Essentially the markets got really anxious about all the extra borrowing.
I was watching (skipping) J Peterson's chat with the new conservative leader PP (can't spell it, sorry).
PP made a lot of debatable claims, blaming Liberals for everything.
However, one thing is certainly true. The buying power of Canadians has dropped in the last few decades.
He brought an example of a guy who does the same job as his mother did in Ottawa, but cannot afford to buy a house in the same area.
Significant losses at Alberta’s government-owned money manager have dealt a major setback to the province’s flagship heritage fund.
Amid unprecedented swings in the market owing to the impact of the COVID-19 virus, Alberta Investment Management Corp. (AIMCo) lost an estimated $4-billion in recent weeks on derivatives, investments that pay off only if stock prices remain stable, according to sources at AIMCo clients. This is in addition to other...
Inflation for 2021, as measured by the CPI, came in at 4.8%.
By contrast, U.S. inflation for 2021 came in at 7%
Some think inflation is temporary, due to supply chain constraints and people taking a break from the work force. Others think the problem is more long-lasting, reflecting increased liquidity pumped into the system by the government (both Bank of Canada and Department of Finance), so that it will take a while to absorb all that....
So it seems planning for the possibility of war is yesterday's topic.
I am interested not only in how the current situation will play out, but how geopolitics and global trade will change as a result of Russian aggression. Some random thoughts:
--High oil prices encourage more production, but also a drive to consume less? Could the energy crisis accelerate the move to non-fossil fuel energy sources?
Posted in the Bogleheads forum: Subject: The Bogleheads Conference is Back in 2022!
The Bogleheads Conference is Back!
This is a pre-announcement. You can’t sign-up yet!
After three long years, the Bogleheads Conference is back! Mark your calendar for October 12-14 . The conference will be in a suburb near O’Hare International Airport in Chicago, IL. The exact location will be announced in April during the early registration period.
I’ve tried searching* but couldn’t come up with anything satisfying. Where can I find consensus Bank of Canada overnight interest rate expectations for the next x years?
Does the BOC publish a rate outlook? Is there a collage of economists’ projections available anywhere? Are there any markets we can observe for consensus future short term rate expectations?
Apologies if this is obvious to some, appreciate being pointed in the right...
I was talking with someone about Russian economy and sanctions.
Russia makes most of their money from selling oil and gas, just guessing here.
They do not produce anything.
Then I am thinking, Canada is not that different, is it?
70% of GDP is from 'services'.
How does it work exactly? We just pass the same $100 bill to one another, like that joke about German tourist in Greece?
Is anyone concerned about the possibility of war breaking out in Ukraine and planning accordingly with their investments ?
Understandably there are lives at risk which is far more important than investments. Nevertheless, given that there's nothing much we can do politically or militarily, should we be planning financially for that possibility ?
I for one have cash in hand which I would like to invest in equity, but am torn between investing...
Tell me what your crystal ball says for the following for the BOC
# of rate hikes in 2022 - I say five at 25 basis points each
# of rate hikes in 2023 - three at 25 basis points
# of rate hikes in 2024 - zero
last rate hike during this cycle - July 2023
Europe is begging suppliers for gas and even coal (!)
This follows on from news on:
- China having to shut down manufacturing because its short of coal and can’t produce enough electricity
- UK running out of gas with prices jumping to the level where electricity companies are going bankrupt (consumer prices are regulated). Electricity is already so expensive that fertilizer production had to be shut down with several knock-on effects such...
A really interesting article by Allan Lanthier on the new “harmonized” minimum 15% tax countries are required to charge.
There was quite a jubilation from Chrystia Freeland et. al. when the deal was reached - the Finance Minister was claiming that CRA would receive billions as a result. However, if Allan is to be believed, the new rules will result in zero extra revenue for Canada. Instead tax havens will be receiving a windfall of extra cash...
Apparently we missed this one as it was winding its way through various security regulators.
Some background from Canadian securities regulators publish final amendments to enhance protection of older and vulnerable clients - Canadian Securities Administrators and Your Trusted Contact Person and Why They Matter | GetSmarterAboutMoney.ca The Trusted Contact Person initiative is being adopted across Canada at the end of December.
Cross-posting from the Bogleheads with the permission of the OP, Jack Bogle....The Legacy Less Traveled. - Bogleheads.org
Jack Bogle’s Life and Legacy, the Legacy Less Traveled
On this, the 91st anniversary of Jack Bogle’s birthday, many are remembering Jack for the colossal impact he had on investors and the investment industry. All investors can thank Jack for his revolutionary investing philosophy. Jack believed that by investing in the...
My daughter doctor, whose portfolio ($2.5M) I've been looking after for 7 years, want to learn more about investing. She's a smart girl, but a novice in the financial world. She wants me to recommend books to her so she could learn.
Any suggestions ? She's smart, so books need to be tilted to an intelligent person.
How Much Cash?
THERE ARE TWO reasons to hold cash investments: to cover upcoming spending and in case we’re hit with a financial emergency...
You might also hold a smaller emergency reserve if you have easy access to borrowed money thanks to, say, a home equity line of credit...
What if you have substantial savings in your taxable account—far more than you could conceivably need for a major home repair or a long period of unemployment? You...
Tip of the hat to Regulator weighs cap on mutual fund fees, other reforms - The Globe and Mail . The Canadian Securities Administrators (CSA) had released CANADIAN SECURITIES ADMINISTRATORS DISCUSSION PAPER AND REQUEST FOR COMMENT 81-407 MUTUAL FUND FEES (all-Caps their's, not mine).
The comment period closes on April 12, 2013.
I've just started reading, but found something for Bylo, among the possible changes they list, ii. Every mutual fund...
This is an OPINION piece in today's G&M by Eric Reguly. (behind the paywall)
The Russian financial system is no longer an island, as it was in the Soviet era. But it can effectively be turned back into one, just like that – by flicking a switch. The switch is SWIFT. Its messaging system sends 40 million payment orders to 11,000 banks and other financial institutions around the world every day, making it the key component of the international...
I ran across this brief extract in a Google search about RBC Wealth Management. The Google, as she does, gives a short extract from the target page at RBC and shows the teaser RBC Wealth Management serves the needs of high net worth ...
This is really tangential to what my actual search is all about but it piqued my interest and I have to ask how much is high net worth ?
I have a bit of a jaundiced outlook on all these banks' wealth...
My neighbourhood has a Little Free Library , a bit like this one:
FreeLibrary.jpg
(Image source: wikipedia)
The idea is that you drop your unwanted books there, somebody else will pick them up. If people only take as much as they give, the box stays full.
I would like to propose a virtual equivalent for FWF: a little free library of financial books. It's wont actually be free cause someone has to pay for shipping, but you get the...
You've heard of the Rule of 72. What about the Rule of 30?
New book from Fred Vettese, this time for those in their 30's and 40's who are balancing living today and saving for tomorrow. From a recent Moneysense article reviewing the book:
In a nutshell, the 30 idea is a rule of thumb financial planners can use to guestimate how much young couples starting off on their financial journeys need to save for retirement.
...
I'm surprised this has not received a mention on FWF. David Card, raised on a dairy farm near Guelph, was awarded the Nobel earlier this week for his work in Labour Economics. There's an interesting article about him and his work in today's G&M.
Striking is his commitment to collecting and analyzing data. The result is the overturning, or at least the challenging, of some textbook nostrums, e.g., that raising the minimum wage causes a rise...
It seems the government is being lobbied to free up invested money in charitable foundations by the very charities that benefit from those endowments. The large pot of endowed funds is just too attractive I guess. I'd like to point out to these charities that the endowed funds are not yours. In most cases they were donated to create a reliable income stream in perpetuity.
Many real assets, including inflation-indexed bonds (linkers), commodities, and real estate, turn out not to be that real. While a single linker provides a constant real return, linkers as an asset class have almost no correlation with inflation. Among commodities, only energy has been a decent inflation hedge. Gold, surprisingly, has been a poor inflation hedge. Real estate has some, but certainly far from...
The John C. Bogle Center for Financial Literacy has created a YouTube site that contains videos from the following sources:
1. The Center's Speaker Series of videos;
2. The Bogleheads Local Chapter videos of zoom session video recordings;
3. The videos from Boglehead Conferences.
Here is the link: Bogleheads .
Here is Lady Geek's announcement on the Bogleheads forum, which includes details: Bogleheads now on YouTube .
I'm seeking recommendations for good sources of breaking and up-to-date news for Canadian companies/stocks. Maybe I'm asking for information that can't be packaged neatly into a news release...?? But I'd like to have a reasonable idea as to why stocks I own, or that are on my watchlist, significantly fluctuate or trend up/down. I don't mean normal market fluctuations or headline news-making influences such as the recent CNR run-down or why my...
Geez, I might soon turn into the old man saying in my day, banks paid us to keep our money, and it was good to be a saver .
I don't think, actually I know I don't, fully grasp this magic wizardry and it's consequences. Please chime in with your thoughts and opinions.
1. If I have a tax deductible mortgage, do I start paying taxes now?
2. Will interest lost on bank deposits become a tax deduction now?
3. Will this be a hard push to eliminate...
For many years I earned USD$ in Canada thanks to my business. I kept the majority of that money in USD.
I am pleasantly surprised that as of today, each USD$ is worth $1.2318 CDN. Most of the money is invested in US ETFs. Would it be wise to convert some of that money to CAD or just let it be ?
I don't really want to sell any of my US ETFs for their CDN counterparts, as it would involve paying taxes on the capital gains. I'm in it for...
Tip of the hat to Rob Carrick's article Rob Carrick: A peek into the trading habits of your fellow DIY investors - The Globe and Mail . This is what a typical DIY investor looks like:
Logs into his or her account often - daily or weekly.
Trades infrequently - usually 10 times or less per year.
Too often overlooks exchange-traded funds - mutual funds are a more common holding
Anyone surprised? I'm not on the first two points, but a bit...
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