Toronto Escorts

debt, and stock market returns

B

burt-oh-my!

Debt and markets: in the 90's, the Canadian federal debt was 563 billion, and over 100% of GDP, 2nd highest in the OECD after Italy. Since then (using 1997 as a starting pint, when the federal debt peaked), the debt has come down to under 50% of GDP, and the Canadian market has approximately doubled, probably a bit more when you add dividends. That return was therefore probably somewhere around 5.5 - 5.5% per year. That is STARTING from a high debt point. Japan over the same time period went from average debt levels to extremely high debt levels, and their market tanked.

I am NOT asserting causality here, nor am I looking at a myriad of other factors: other kinds of debt (personal, corporate, provincial, municipal etc), econonic growth rates, demographics etc. AllI am saying is that right now hysteria over debt is the boogeyman du jour, but the relationship is anything but proven.
 

wazup

Well-known member
Jun 12, 2010
4,280
581
113
I'm confused, you're saying that there is no relation between debt and markets, yet the two examples you gave seem to prove that there is a direct relation, please explain, or am I misunderstanding your anything but proven remark?
 
B

burt-oh-my!

It is the OPPOSITE of the USUAL implied relationship - i.e. high debt = trouble for the stock market
 

splooge

New member
May 5, 2010
928
0
0
San Jose, CA
generally speaking, when market returns sustain multi year positive returns, it is easier to pay off debt because people are generally doing better off. at one time income trusts and other funds did very well for the middle class and common blue collar workers, but not so in the last 5 or so years.

right now the key is to pay off debt BEFORE investing... don't take the risk to get a maybe 7-10% aror when you are also holding debt at 3%-30%- (the 3% is variable, the 30% is CC debt) even if ur debt is tax deductible (if not, make it become that!) u still are NOT getting any wealthier holding onto debt!

sell some of ur shit, stocks included and pay that crap off!
 
Ashley Madison
Toronto Escorts