The Canadian government hasn’t come up with a plan to stop investment money fleeing to “low tax” United States.  The US economy and the US stock market and USD have all soared with Trump’s strategy. With the border blocked, there will be no reason to invest in Canada. Trudeau has refused to look at tax reductions. That has severe implications for the financial markets here.
You have to pay ~2.5-4% in unavoidable ownership fees as an owner even with your mortgage paid off (property taxes, insurance, maintenance, amortized transaction costs, etc). Even if we’re generous and assume that’s just 2.5%, that means all that that equity is only making you 2.5% (1.5% in Vancouver) in rent savings. If you don’t have the equity, you have to pay more than than to borrow it from the bank (or take on the risk of paying more). If you do and you invest it, then that can be substantial savings.
Thanks for voicing your opinion too Violet. This isn’t Nazi Germany and it’s important that we can all speak freely without feeling threatened. I think my portrayal of Obama and Clinton was generous. I’ve witnessed the downfall of the US in the last 30 years and it’s awful to see. I hope you’ll get a chance to read my other post on the US debt: http://www.gordcollins.com/investment-2/massive-deficit-debt-china/ Do you think Obama generated the results he did get with that $20 trillion debt? If you don’t bring back the good paying jobs and reduce the deficit, how will you pay off that horrible debt? The US needed a strong leader, and although the Tweeting @realDonaldTrump is creating more friction, you have to admire how he’s standing up against the media who have a stake in the status quo. I hope as well that he will level the playing field between multinational corporations and small businesses like yours. My loyalty is with SMBs like your company!
Having been suspended for three successive trading days (October 9, 10, and 13), the Icelandic stock market reopened on 14 October, with the main index, the OMX Iceland 15, closing at 678.4, which was about 77% lower than the 3,004.6 at the close on October 8. This reflected that the value of the three big banks, which had formed 73.2% of the value of the OMX Iceland 15, had been set to zero.
Preparation is key. The best time to react to any potential market crash is before it occurs. Not after. Reacting in the moment can lead to expensive and costly mistakes. For example, if you saw that socks were on sale, you'd be more interested in buying socks. However, when it comes to stocks, people take a different view. When stocks are on sale, as can occur in a market crash, then often investors' instincts are to run away. Thinking about your strategy ahead of time and writing it down, just in a couple of paragraphs, can be key. Then if the markets do crash, make sure to look at that document before you act.
Usually, HFT programs and computer trading works without a hitch. But once in a while problems do crop up. Back on Aug. 24, 2015, the United States’ three major stock indexes plunged on the open, but would recover much of their losses by midday. Among the reasons blamed for the dip were market makers and HFT traders. With so many stocks within the S&P 500 failing to open on time, and a number of exchange-traded funds under trading halts, HFTs and other high-speed traders shut down their systems, removing much-needed liquidity from the marketplace and exacerbating the early-day decline.
Ninth, Trump was already attacking the Fed when the growth rate was recently 4%. Just think about how he will behave in the 2020 election year, when growth likely will have fallen below 1% and job losses emerge. The temptation for Trump to “wag the dog” by manufacturing a foreign-policy crisis will be high, especially if the Democrats retake the House of Representatives this year.

Our deficit and debt as numbers alone are kind of meaningless.. It only matters relative to other countries and relative to our GDP. For better or worse current economic theory under globalization seems to expect every country to grow and amass more debt while keeping those two values in some kind of balance. So it is hard even for an economist to say how relevant the size of the number is. And a lot of that theory is working out rather poorly for many Euro countries right now.

Job one in the midst of a stock market crash is to be aware of your own exposure to the market. Are you highly leveraged as a margin investor? Is your investment portfolio overly weighted with riskier growth stocks or other more-speculative stocks? Has your personal financial situation changed significantly over the course of a 24-hour market collapse?
You haven’t seen the effects of *any* of Trumps decisions yet. And Obama’s decisions had virtually zero impact on creating the Great Recession. There wasn’t time. Unless you believe in teleportation, magic, and instantaneous changes to the marketplace and if that’s the case, I’m a nigerian prince building a bridge and boy have I got a business proposition for you…

As a case in point, I present to you subprime auto loans, or loans given to consumers with less-than-prime credit scores (usually 550 to 619 on the FICO score scale). Having a lower credit score typically gives these folks fewer lending options, which allows lenders that are willing to work with subprime consumers to charge a notably higher interest rate, relative to prime-rated consumers. The problem is these consumers usually have subpar credit scores for a reason, and delinquency rates on these subprime and deep subprime loans are shooting higher.
While there are risks for local bubbles in markets experiencing inorganic growth, like the Miami condo market for example, it’s wise for investors to focus more on their own investment strategy and less on speculation of the overall market. If able to identify and clearly understand a market and its economy, investors can find success with single-family investments.
This begs the salient question: How much lower will the growth rate of earnings be in 2019 for the S&P 500? Earnings growth in 2018 peaked at 25%. However, with the top global economies all rolling over, peak corporate margins, trade wars, the waning of repatriation and stock buybacks, soaring worldwide debt and trillion dollar U.S. deficits, mounting rate hikes from global central banks and a Fed that is destroying $600 billion this year through its reverse QE program, it is doubtful that there will by any earnings growth at all next year. Nevertheless, Wall Street Shlls are still pricing in 10% earnings growth and slapping a big multiple on top of it.
For a few years now, the reason for fast rising home prices have been blamed on tight inventory. After seeing what has happened in Toronto, I’m starting to question these claims of tight inventory in almost all major housing markets (US and globally). In Toronto, within two weeks, they went from having very low inventory to having a 50% increase. Where did all of their extra inventory come from? Could the same happen to other major cities as well? It’s possible that there are low inventory in so many places due to aggressive investor speculation, which is then causing locals to panic buy. Very similar to the irrational exuberance happening before the housing crash 10 years ago. Something can trigger these property investors to sell all at the same time, and cause buyers to pull back, similar to what’s happening in Toronto. Another housing crash is possible, and it doesn’t have to be caused by bad loans like last time.

Soaring home prices, combined with 50-year low interest rates, have lulled U.S. homebuyers into a false sense of security. But current economic conditions, combined with the actions of overly aggressive lenders, leave the housing market ripe for a major crash. The Coming Crash in the Housing Market is the first rational, unbiased examination of the dangers homeowners face in today's climate of overpriced housing and overextended credit. Asking and answering questions that have for too long been ignored, respected economic consultant John Talbott provides:

However, Lee stressed that institutional cryptocurrency investors are “not necessarily getting hurt” by the recent market downturn, even as Bitcoin’s price dropped sharply to as low as $4,237 today. In this regard, the investor emphasized the crucial role of institutional participation in the industry, claiming that specifically this part of the market will pull the “next wave of the adoption.”
“My view is that the markets are extremely overvalued, and can fall even 2,000 points from here. (Sensex). The Nifty can correct by about 1,000 points. Nothing has changed fundamentally, I mean we have the same macro-economic situation, etc, but when a sell-off happens, nobody can predict. Financials, especially NBFCs are overvalued,” Rajat Sharma, founder, Sana Securities told FE Online.
In 1982, a price war began between Commodore and Texas Instruments, and home computers became as inexpensive as video-game consoles;[12] after Commodore cut the retail price of the 64 to $300 in June 1983 some stores began selling it for as little as $199.[9] Dan Gutman, founder in 1982 of Video Games Player magazine, recalled in 1987 that "As the first wave of the personal computer boom started, the video games market began to taper off. People asked themselves, 'Why should I buy a video game system when I can buy a computer that will play games and do so much more?'"[13] The Boston Phoenix stated in September 1983 about the cancellation of the Intellivision III, "Who was going to pay $200-plus for a machine that could only play games?"[9] Commodore explicitly targeted video game players. Spokesman William Shatner asked in VIC-20 commercials "Why buy just a video game from Atari or Intellivision?", stating that "unlike games, it has a real computer keyboard" yet "plays great games too".[14] The company offered competitive upgrades, where rival systems could be traded for a discount toward the purchase of a Commodore 64. Commodore's ownership of chip fabricator MOS Technology allowed manufacture of integrated circuits in-house, so the VIC-20 and C64 sold for much lower prices than competing home computers.
What on earth could be responsible for such optimism? After all, the oft-repeated adage that Trump’s tax cuts have been feeding the bulls on Wall Street has run its course. The tax cuts have not been approved and with the divide in Congress—a divide also within Republicans themselves—there’s little chance of the major reductions occurring. Moreover, the U.S. debt now exceeds $20.0 trillion.
FIDough backed this up with, “Lots of research shows that most people tend to sell near the bottom, and reenter the market after it has gone up significantly.  In other words, most people do worse by trying to protect their money from market crashes.  The truth is, if you keep on investing and stick to your rebalancing plan throughout market cycles, you will do great.”
Efforts to renegotiate the North American Free Trade Agreement have proved more problematic than many in markets had hoped. Instead of ending Friday, talks with Canada will continue with expectations a deal could be reached within 90 days. Talks with Mexico had proceeded but the U.S. and Canada, as of Friday, appeared to have reached a sticking point.

As an investment banker who buys blocks of mortgages around America this is an important subject as to whether the value of my collateral will deteriorate. Talbott does a good job presenting his case that there is a relationship between household income and housing prices. His point is well taken that low interest rates have fueled this boom and that when rates rise, housing prices will have to come down. So, from the perspective of his thesis, I found this to be well written and well documented even if I agree there is a risk but do not believe that it will be significant.
Flooding has hit U.S. coastal towns three to nine times more often than they did 50 years ago. In Miami, Florida, the ocean floods the streets during high tide. Harvard researchers found that home prices in lower-lying areas of Miami-Dade County and Miami Beach are rising more slowly than the rest of Florida. A study using Zillow found that properties at risk of rising sea levels sell at a 7 percent discount to comparable properties. By 2030, Miami Beach homes could pay $17 million in higher property taxes due to flooding by 2030.

It's not enough to have a pile of cash to spend when the market crashes if you end up having no idea what to buy. So build and maintain a stock watch list. Start by jotting down the names of companies you read or hear about that seem like promising investments. You could do so on paper, but maintaining a list online is better. You can set up an online watch list or "portfolio" full of stocks of interest at sites such as finance.yahoo.com, morningstar.com, marketwatch.com and others. You might pretend that you bought one or more shares of each at the stock price at which you first noticed the company. That way, the portfolio will always reflect how much the stock has risen or fallen since then.
After Black Monday, regulators overhauled trade-clearing protocols to bring uniformity to all prominent market products. They also developed new rules, known as "trading curbs" or colloquially as circuit breakers, allowing exchanges to temporarily halt trading in instances of exceptionally large price declines in some indexes; for instance, the DJIA.[15]

However, the psychological effects of the crash reverberated across the nation as businesses became aware of the difficulties in securing capital market investments for new projects and expansions. Business uncertainty naturally affects job security for employees, and as the American worker (the consumer) faced uncertainty with regards to income, naturally the propensity to consume declined. The decline in stock prices caused bankruptcies and severe macroeconomic difficulties, including contraction of credit, business closures, firing of workers, bank failures, decline of the money supply, and other economically depressing events.
I think the US has a super position if Trump can get past all his enemies and stimulate the GDP and domestic productivity. It’s not easy to bring good jobs back. He’s really bit off more than he can chew. If he can cut small business taxes, that would launch the country into boom times. If he doesn’t do something soon, because things are quiet right now, even his biggest supporters could possibly turn on him.

Still lacking sufficient demand from fundamental buyers or cross-market arbitrageurs, HFTs began to quickly buy and then resell contracts to each other—generating a “hot-potato” volume effect as the same positions were rapidly passed back and forth. Between 2:45:13 and 2:45:27, HFTs traded over 27,000 contracts, which accounted for about 49 percent of the total trading volume, while buying only about 200 additional contracts net.
Jump up ^ Coleco Presents The Adam Computer System. May 3, 2016 [1983-09-28]. Event occurs at 44:30. Archived from the original on January 3, 2017. We're doing that with five new television commercials, which have just been completed, and which will be shown in conjunction with the Adam launch date. These commercials are each directed to our target audience, which is composed of our friendly neighborhood children, boys age 8 to 16 and their fathers. We believe those are the two groups that really fuel computer purchases, [boos] and we've directed right at 'em [more boos] - oh, sorry, sorry, sorry, sorry. Women, we've a commercial for you, trust me, but the key point is that our research, which is consumer research, directed that thought [inaudible] from the research, and we've directed our commercials at that target user group.
I am one of the victims of this mess. Bought new home Jan. 2006. By 2010 my Mortgage was sold and re-sold 4 times without anyone telling me or asking me for my permission. Just got a notice that my monthly auto payment was denied. Checking with the bank there was a new Financial Facility owning my home and wanting that payment. Also, from the first bank with the Mortgage, to the 4th Bank with the Mortgage, each of them, (1 was Natl. City Bank) also sold and went under moving my Accounts with my Money each time. Again without my approval or knowledge. I am now 66 trying to get a Harp Loan with lower interest rate while on Social Security and I’m told I can’t because my loan shows it is only 5 years old and it is really 10 years old. I’m screwed and will have to sell now at this time of life because I was a pawn on the board of this crappy game they all played and have to pay the price. NOT FAIR AT ALL!!!
That's a short term shock which makes a lot of people catch their breath. When a country as big as China has a short term shock (even in stocks), a lot of people in other countries get nervous. It's not just stocks, either; the price of oil has dropped dramatically in recent months—good for a lot of people who consume oil (airlines, transportation, individuals), but bad for people who produce oil (oil-rich countries, petrochemical refineries).

With a Real Wealth Strategist subscription Matt will be your guide to making the kinds of profits many investors only dream about. You’ll get access to his education and experience: Over 20 years in the natural resource industry, expertise in mining, industry and agriculture, and the chance to travel with him as he visits mines, oil projects and company headquarters, in search of the perfect investment idea. Real Wealth Strategist’s portfolio focuses on all natural resources. Essentially, if there’s a way to maximize profits, he’s going to find it and recommend it.

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