Clippings 2016

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Peculiar_Investor
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Re: Clippings 2016

Post by Peculiar_Investor »

Koogie wrote:Just idly speculating but when the news of the prospective new TD exchange traded funds was "leaked" in January, they mentioned the funds would be managed by "TD Asset Management Inc" Which, I think, is their "wealth management" division ? Does this mean that they might not be available to the hoi polloi that use TDDI ?
Exchange traded funds by definition trade on the exchange. How could TDDI block their clients from purchasing a listed stock? This a different case than the Fund-based investment savings accounts that discount brokerages only allow clients to purchase their own specific brand.
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Re: Clippings 2016

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Peculiar_Investor wrote:Exchange traded funds by definition trade on the exchange. How could TDDI block their clients from purchasing a listed stock?
You got me. I plead circumstances. A late evening, overindulgence and an idle curiosity. Best, as always, to see what TD comes out with and then
complain comment.
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Re: Clippings 2016

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Australia is moving towards a Faster Payment System.
Innovation in electronic payments to accelerate demise of cheques
It seems that a number of global players have already embarked on faster payment systems which could have far reaching effects.
Here is an article from the RBA (Australia's equivalent to the BOC)
Fast Retail Payment Systems
It would seem that North America is a laggard in this effort. Consider how long it has taken for the US to adopt chip technology - still not fully implemented.
The fast payment technology has the potential of settling stock trades in real time instead of the current T+3 present system.
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Re: Clippings 2016

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CIBC thinks that the worst is over for the Canadian dollar versus the U.S. dollar.

Essentially, fiscal stimulus will be a substitute for monetary stimulus, and will allow the Bank of Canada to increase interest rates. Combined wityh the U.S. Fed delaying interest rate hikes, that should keep the interest rate differential manageable and so remove one reason for switching to USD. Plus CIBC sees a recovery in oil prices "soon".

This economic forecast is worth every penny you are paying for it.

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Re: Clippings 2016

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Update on the Quicken Sale from Eric Dunn
I’m Eric Dunn, the head of the Quicken business and an avid daily user of Quicken. Today, I am pleased to share some news about the business, our commitment to improving our products, and my enthusiasm about the future of Quicken.

Back in August, Intuit announced plans to find a new home for Quicken. We have now identified a buyer who shares my passion for the Quicken product and for devoted customers like you. H.I.G. Capital is a leading private equity firm with a track record for investing in and building strong businesses. They decided to invest in the Quicken business because of their deep appreciation of the Quicken product, our loyal customers, and Quicken’s commitment to helping consumers manage their finances.
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Re: Clippings 2016

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Short run, Canada may or may not be in a recession that would benefit from deficit spending. Long run, Canada's problem is low productivity.
Labour productivity growth slows in fourth quarter

Unit labour costs increase
So wage increases are outstripping productivity gains. Doesn't fit with the narrative that the capitalists are grabbing all of the productivity gains for themselves, leaving workers to stagnate.

Of course, a quarter or a year's worth of data doesn't mean much. But this is consistent with longer term trends.

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Re: Clippings 2016

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Buying America: Canada Becomes a U.S. Creditor for First Time
The stock of U.S. assets held by Canadians in the fourth quarter of 2015 -- everything from corporate acquisitions to portfolio investments -- exceeded assets held by Americans in Canada for the first time since at least 1990, according to quarterly data published Thursday by Statistics Canada.
By $82 billion.
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Re: Clippings 2016

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A bull market in U.S. Treasuries?
Morgan Stanley, one of the Wall Street banks that deals directly with the Federal Reserve, cut its bond yield forecasts for 2016 and said the U.S. central bank will wait until December before raising interest rates.

“The global backdrop for rates markets looks so supportive that 2016 may become known as the ‘Year of the Bull,’” according to a report the company issued Sunday by analysts including Matthew Hornbach, head of global interest-rate strategy in New York.

<snip>

The company’s new and prior forecasts for 10-year yields by Dec. 31 are shown below. The current forecasts are from the Sunday report. The former figures are from the company’s 2016 global rates outlook published Nov. 30, the previous update of the quarterly forecasts:

Market........... Current Yield........... New Forecast............ Old Forecast
U.S. .................1.97% ....................1.75% .......................2.7%
Germany............ 0.27%.................... 0.55% ......................1.2%
U.K................... 1.58% ....................1.5% .......................2.6%
Japan,,,,,,,,,,,,,,, -0.055%.................. -0.2%....................... 0.85%
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These Signals Dictate The Market Action From The Fed Statement

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[youtube][/youtube]
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Re: Clippings 2016

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Fixed that for you!
For the fun of it...Keith
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Re: Clippings 2016

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While I haven't checked it recently because most newsletters aren't worth the paper they are printed on, at least the Hulbert Financial Digest kept them honest and provided a benchmark to help identify those that might have some usefulness. Unfortunately all good things come to an end, ‘A loss for all investors’: The Hulbert Financial Digest says goodbye | Financial Post
Many investing newbies go down the wrong path when they get influenced by self-promoters frequently cited in the media, who are therefore assumed to be accomplished experts. Kirby says Hulbert put such “experts” to the test by objectively tracking their monthly and yearly performance and “for the very few that were good enough to survive, decade after decade.” Hulbert also highlighted performance against the risk needed to get superior investment results.

One irony is Jaffe’s suggestion that part of the demise of the Digest was its very quality: once an investor identified a couple of highly trusted letters, some felt they no longer needed Hulbert’s guidance in choosing a newsletter.
Agreed, isn't that ironic?

One Canadian newsletter that I've followed, The Investment Reporter, has consistently received good marks from Hulbert.
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Re: Clippings 2016

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Peculiar_Investor wrote:Agreed, isn't that ironic?
Same with buy and hold "forever" broad-based market indexing. Once you "get it" you no longer have any need to keep up with investing noise, er, news, other than for its entertainment value. And in a further irony, the stuff that's available for free on the Internet is usually far more entertaining than the printed stuff in the likes of G&M or FP that carries a price tag.
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Re: Severance - got sacked

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Esther Brake, McDonald's Manager Who Worked 12-Hour Days, Wins Big In Court
A former manager at an Ottawa-area McDonald’s was awarded $104,499 in a wrongful dismissal suit on Monday. Esther Brake, who worked for the company since 1986, “was set up to fail,” Ontario’s Superior Court of Justice found.
It's unfortunate that most long tenured Canadian employees leave a company with nothing more than a handshake.
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Free Online Course By Terrance Odean

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https://www.edx.org/course/how-save-mon ... yx-fin101x

Terrance Odean is offering a free online course that starts April 15th. Signup link above.
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Re: Clippings 2016

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So just who are the top one percent of income earners? In the U.S. the breakdown is as follows:
Rothwell 32516004.png
Note the preponderance of doctors (14%), lawyers (7%) and dentists (2%). Contrast with securities and financial services (6%), insurance (3%) and bankers (2%).

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BMO financial planner's 'erroneous' advice loses Ontario couple almost $50,000

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BMO financial planner's 'erroneous' advice loses Ontario couple almost $50,000
http://www.cbc.ca/news/canada/toronto/b ... -1.3504783

When I read this article, I was surprised that the couple got $50000 from the bank.
Why are they entitled? Isn't the $50000 from taxes and OAS clawback which SHOULD be paid.
I think BMO is concerned about bad publicity. I doubt I would ever get a penny from this situation.
Seems like Going Public may have the banks pay your tax bill.
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Re: BMO financial planner's 'erroneous' advice loses Ontario couple almost $50,000

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CBC's Going Public gets results simply because of the exposure. Having delved into this story some, clearly the BMO advisor had no idea what she was talking about and caused the couple to trigger taxes due to collapse of their registered account. That is akin to a cop saying you can rob people and there are no consequences. I wonder if that adviisor is still employed?
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Re: BMO financial planner's 'erroneous' advice loses Ontario couple almost $50,000

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AltaRed wrote:CBC's Going Public gets results simply because of the exposure. Having delved into this story some, clearly the BMO advisor had no idea what she was talking about and caused the couple to trigger taxes due to collapse of their registered account. That is akin to a cop saying you can rob people and there are no consequences. I wonder if that adviisor is still employed?
I feel that the couple is partly to blame, from the article, it seems that they shopped around until they had a bank that answered their wishes.
How can taxes owed be different between banks?
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Re: BMO financial planner's 'erroneous' advice loses Ontario couple almost $50,000

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milo wrote:I feel that the couple is partly to blame, from the article, it seems that they shopped around until they had a bank that answered their wishes.
How can taxes owed be different between banks?
I don't disagree with you. I didn't sense much intelligence wisdom there. But this is not unlike people who think they can get rich buying into land development, or Bre-X, or getting outsized returns on their portfolio aka Bernie or Earl? At some level though, a responsible advisor has to say....it can't be done. The BMO advisor had to know that if other institutions had said no, then there had to be something to be questioned behind it and to do some research of her own to be certain.
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Re: Clippings 2016

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The CBC article is sketchy and states only that the couple's money was in a US retirement account. There are several types of such accounts and doing a rollover available to a Canadian RRSP is tricky, as explained here. The couple might have received the correct answers from the first two banks -- a no -- or it's possible that staff in those two small-town banks just didn't want to risk wading into uncharted waters and simply told the couple it can't be done. It seems the BMO staffer did not properly research the question and IMO is thus culpable.
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Re: Clippings 2016

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brucecohen wrote:It seems the BMO staffer did not properly research the question and IMO is thus culpable.
It seems pretty scary that some staffer can make so much harm and the CBC has to intervene to rectify it. :roll:
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Re: Clippings 2016

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kcowan wrote:
brucecohen wrote:It seems the BMO staffer did not properly research the question and IMO is thus culpable.
It seems pretty scary that some staffer can make so much harm and the CBC has to intervene to rectify it. :roll:
We don't know who the couple contacted at the branch, what they said and how they said it. Nor do we know if they escalated to the regional manager.
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Re: Clippings 2016

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Brookings Institution on the U.S. government debt level:
Convincing Americans that they should worry about the federal deficit and debt is tough, despite all those warnings about the inevitable crisis.

<snip>

Today, interest consumes a bit more than 6% of all federal outlays. But the latest Congressional Budget Office baseline projections suggest that, without new tax or spending legislation, interest will account for more than 13% of all federal outlays in 2026. That’s partly because interest rates are expected to rise from today’s very low levels; CBO expects the average yield on 10-year Treasury notes, now around 1.9%, to climb to 4.1% over the next decade. There will also be more debt on which to pay interest because the government will be borrowing each year to cover the deficit.
Luckily we don't have those problems in Canada.

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Re: Clippings 2016

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ghariton wrote:
That’s partly because interest rates are expected to rise from today’s very low levels; CBO expects the average yield on 10-year Treasury notes, now around 1.9%, to climb to 4.1% over the next decade. There will also be more debt on which to pay interest because the government will be borrowing each year to cover the deficit.
Luckily we don't have those problems in Canada.
Luckily prognosticators are expected to have a lousy track record of predicting future interest rates. That takes care of the first "partly."

Luckily the US economy will have has a long track record of growing over time, thus reducing debt as percentage of GDP. That takes care of the other part.

Don't worry. Be happy. ;)
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Re: Clippings 2016

Post by Shakespeare »

The debt will be treated the old-fashioned way: by inflating it away.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
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