Clippings 2016

Recommended reading, economic debates, predictions and opinions.
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SkaSka
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Re: Clippings 2016

Post by SkaSka » 12 Dec 2016 16:52

ghariton wrote:
So, what moral can we draw from all of this?
Save more than you spend, considerably so if you have the insight to realize your work is open to disruption/change. Perhaps proactively start going to night school to gain skills in an industry/sector that actually is growing and has demand.

Take those savings and invest in and own assets; do not own depreciating liabilities that charade as assets (cars, toys, penny stocks, get rich quick schemes, etc).

Possess the fortitude and will to live like a pauper and look like someone with nothing while you build up your balance sheet with assets. This will be your safety net for when the bad times come (and they will).

The world is constantly changing, it doesn't care about you and your inability or unwillingness to change. Continuously reinvent yourself.

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Re: Clippings 2016

Post by Koogie » 12 Dec 2016 17:52

SkaSka wrote:
ghariton wrote: So, what moral can we draw from all of this?
Save more than you spend, considerably so if you have the insight to realize your work is open to disruption/change. Perhaps proactively start going to night school to gain skills in an industry/sector that actually is growing and has demand.
Take those savings and invest in and own assets; do not own depreciating liabilities that charade as assets (cars, toys, penny stocks, get rich quick schemes, etc).
Possess the fortitude and will to live like a pauper and look like someone with nothing while you build up your balance sheet with assets. This will be your safety net for when the bad times come (and they will).
The world is constantly changing, it doesn't care about you and your inability or unwillingness to change. Continuously reinvent yourself.
Even simpler. It is better to be a 58 year old investment company executive than a 58 year old factory worker.
Buy very little, sell even less.

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Re: Clippings 2016

Post by SkaSka » 12 Dec 2016 20:30

Koogie wrote:
SkaSka wrote:
ghariton wrote: So, what moral can we draw from all of this?
Save more than you spend, considerably so if you have the insight to realize your work is open to disruption/change. Perhaps proactively start going to night school to gain skills in an industry/sector that actually is growing and has demand.
Take those savings and invest in and own assets; do not own depreciating liabilities that charade as assets (cars, toys, penny stocks, get rich quick schemes, etc).
Possess the fortitude and will to live like a pauper and look like someone with nothing while you build up your balance sheet with assets. This will be your safety net for when the bad times come (and they will).
The world is constantly changing, it doesn't care about you and your inability or unwillingness to change. Continuously reinvent yourself.
Even simpler. It is better to be a 58 year old investment company executive than a 58 year old factory worker.
Touché.

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Re: Clippings 2016

Post by BRIAN5000 » 15 Dec 2016 16:16

http://www.repmag.ca/news/bc-government ... 18708.aspx :roll:

A new government program promises to match the down payment for eligible first-time homebuyers.

The BC Government has announced today the BC Home Owner Mortgage and Equity Partnership Program.
Below are the qualification requirements. Buyers must:

• Reside in the home
• Be a first-time homebuyer
• Be a Canadian citizen or permanent resident for 5 years
• Have resided in BC for at least one year
• Have a combined gross income of $150,000 or less
• Have saved at least half of the minimum down payment they will require, and
• Be pre-approved for a 1st mortgage before applying. Brokers should treat the second mortgage as a non-traditional source of down payment.

Additionally, the property must be the principal residence for the first five years, must cost less than $750,000, and must not be a rental or recreational prop
“Sometimes you are going to sell early and wish you would’ve held on, other times you will hold on a
little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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Re: Clippings 2016

Post by AltaRed » 15 Dec 2016 17:57

This may ultimately be better delegated to Watercooler, but think it has substantial merit vis-a-vis getting sensibility back to the table
During the Obama administration, the EPA became a lawless organ of federal power, divorced from the Congressional statutes that were meant to constrain it. If it is to be reformed, it will need the steady hand of someone who understands just how thoroughly it has gone astray. Enter Oklahoma Attorney General Scott Pruitt, a man who has spent the last six years pushing back on the EPA's most egregious overreaches.

Given Pruitt's recent role as EPA antagonizer-in-chief, it's little wonder that some on the left have responded with howling rage to his nomination. How, they ask, can a man who has repeatedly sued the EPA now be tapped to lead it?

But even a cursory review of some of the EPA's actions over the last few years shows that only someone who thoroughly understands why the EPA is broken can hope to fix it.
EPA gone rogue

The current debacle at Standing Rock can be blamed on the EPA putting the Army Corps of Engineers between a rock and a hard place. A regulatory agency should never be permitted to change their mind late in the process. The reviews had been done and approvals granted to proceed. I mostly post this because I can see some of the same 'lawlessness' happening on the KM project. Our own 'unelected' Dept of Fisheries and Oceans tend to act like an equivalent heavyweight. I've seen firsthand their heavyhandedness dealing with simple stream crossings for example.
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Re: Clippings 2016

Post by Park » 16 Dec 2016 19:11

http://beta.morningstar.com/articles/78 ... think.html

A good column on why there will never be a book called "Bonds For The Long Run".

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Re: Clippings 2016

Post by longinvest » 16 Dec 2016 20:23

Park wrote: http://beta.morningstar.com/articles/78 ... think.html

A good column on why there will never be a book called "Bonds For The Long Run".
This should go into the Financial Porn thread, instead. Apparently, John Rekenthaler (the author) does not know about Treasury Inflation-Protected Securities and Real-Return Bonds. As a consequence, he is convinced that bonds have lots of inflation risk. He has yet to learn about the Japan stock market of the last 30 years, too.
Bogleheads investment philosophy | Simple index portfolios | Lifelong Portfolio: 25% each of (domestic/international)stocks/(nominal/inflation-indexed)bonds | VCN/VXC/VAB/ZRR

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ADRs

Post by Park » 20 Dec 2016 10:08

For the novice investor, a nice overview of ADRs:

http://beta.morningstar.com/articles/78 ... tocks.html

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Which US Domiciled ETFs Distribute Cap Gains?

Post by Park » 21 Dec 2016 09:19

http://beta.morningstar.com/articles/78 ... bills.html

Which US domiciled ETFs tend to distribute more cap gains?
1)currency hedged ETFs
2)fixed income ETFs, although the amounts tend to be small
3)ETFs which invest in countries where in kind redemption isn't going to work. That tends to be some emerging markets
4)funds that are levered or inverse, because they use derivatives like in currency hedged ETFs

I would also add new ETFs. They don't have a wide variety of shares to give away in redemption.

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Re: Clippings 2016

Post by ghariton » 22 Dec 2016 12:09

Some people think a Trump administration will be good for the economy, at least in the short run:
Bank of America Corp. doesn’t expect Donald Trump’s election to jolt the U.S. economy next year, but its corporate customers are enthusiastic and already seeking funds to expand, according to Chief Executive Officer Brian Moynihan.

Mid-sized companies “are friskier, they’re more active,” Moynihan, 57, said in an interview with Bloomberg Television’s David Westin for broadcast Thursday. Recently, some have been drawing down credit lines to invest in operations, he said. “They feel better about the prospects of the regulatory environment and their businesses. They feel better about the possibility of final demand.”

Moynihan, who runs the second-largest U.S. lender, said it may take a while for Trump’s initiatives as president to play out in the economy, which already was benefiting from rising consumer spending. The bank has forecast about 2 percent growth next year, he said -- up from the 1.6 percent that economists estimate for 2016.
Mind you, 2% annual growth is nothing to get excited about. Still, it's better than the forecast for Canada.

George
The plural of anecdote is NOT data.

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Another Way To Conduct Large ETF Trades

Post by Park » 23 Dec 2016 09:12

http://www.etf.com/etf-education-center ... ading.html

For a large ETF trade, consider dealing directly with a market maker.

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Re: Clippings 2016

Post by pmj » 24 Dec 2016 19:44

The Morality of Banking in It’s a Wonderful Life
https://www.theatlantic.com/business/ar ... ng/511592/
In addition to its holiday cheesiness and religious moralizing, the 1946 classic touches on financial themes that remain painfully relevant.
Peter

Patrick Hutber: Improvement means deterioration

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Re: Clippings 2016

Post by kcowan » 25 Dec 2016 05:23

pmj wrote:The Morality of Banking in It’s a Wonderful Life
Nothing new here. If you can't beat them, join them (by owning their stock).
For the fun of it...Keith

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ETF/ETN Closures

Post by Park » 29 Dec 2016 07:28

http://www.etf.com/sections/features-an ... nopaging=1

ETFs with $US50 million and $US150 million in assets were closed in 2016. ETNs with far more assets were closed.

If your ETF/ETN closes, you could end up paying considerable cap gains tax.

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Re: Clippings 2016

Post by AltaRed » 29 Dec 2016 11:13

That is always an issue but I suspect the minimum threshold is somewhat smaller in Canada than the USA. AFAIK, only Horizons closed 2 in 2016 and they were bizarre ones IMNSHO. Anything that reaches out into the ozone layer based on some incomprehensible algorithm should not have been issued in the first place.
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