Is now a good time to be buying equities? (Canadian and International) Just looking for some opinions. Thanks.
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Equities
- Thread starter drlove
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If I knew, I would be wintering in Hawaii. "The Big" guy said in December that the worst is yet to come in the economy but the market is forward looking so maybe it has already discounted the "worst is yet to come" and is looking "across the valley".
How are those people who waited in line for 73 hours in the Summer to buy overpriced unbuilt condos doing?
How are those people who waited in line for 73 hours in the Summer to buy overpriced unbuilt condos doing?
You sound like an economist that's been through 8 years of university and post-doctoral training...fuji said:
IMHO, a good alternative to equities might be to buy some corporate bonds? For example, bonds issued by banks such as TD and Royal Bank etc. These type of bonds have really been beaten down in price lately.
A good product IMHO to buy would be the XCB etf. It's present yield is 5.1%. This product would also be good for TFSA accounts as well.
Disclosure----I am not a financial advisor
. However, I only have two main interests in life---lol. Finance and Terb. I'm not sure in which order?
A good product IMHO to buy would be the XCB etf. It's present yield is 5.1%. This product would also be good for TFSA accounts as well.
Disclosure----I am not a financial advisor
. However, I only have two main interests in life---lol. Finance and Terb. I'm not sure in which order?squash500 said:IMHO, a good alternative to equities might be to buy some corporate bonds? For example, bonds issued by banks such as TD and Royal Bank etc. These type of bonds have really been beaten down in price lately.
A good product IMHO to buy would be the XCB etf. It's present yield is 5.1%. This product would also be good for TFSA accounts as well.
Disclosure----I am not a financial advisor
Actually, When I met with my advisor in November, I did put some money into corporate bonds. I was just wondering about equities since my corporate pension plan has 80% allocated toward them.
Buy bonds, they're better.
But don't buy long term US treasuries...they're in some sort of a bubble.
Although stocks are really cheap right now, so it's tempting. One thing I'd love to do if I had the means is to shorting the hell out of currencies of overextended countries like Hungary; they have a huge 8% current account deficit, their household sectors are up to their eyeballs with swiss-franc denominated debt, mainly mortgages, such that the government is frantically trying to stem the decline in the forint. But their reserves are rapidly being depleted; in a world with scarce credit, near bankrupt countries aren't the first places to attract capital. It's just a matter of time before the Hungarian economy utterly collapses.
But don't buy long term US treasuries...they're in some sort of a bubble.
Although stocks are really cheap right now, so it's tempting. One thing I'd love to do if I had the means is to shorting the hell out of currencies of overextended countries like Hungary; they have a huge 8% current account deficit, their household sectors are up to their eyeballs with swiss-franc denominated debt, mainly mortgages, such that the government is frantically trying to stem the decline in the forint. But their reserves are rapidly being depleted; in a world with scarce credit, near bankrupt countries aren't the first places to attract capital. It's just a matter of time before the Hungarian economy utterly collapses.
For the short run you may be correct, but I would not put any money in long bonds. I have fairly resently taken a sizeable short position in long bonds, my thinking with all this stimulus inflation is not far away. Fed rate is 0% how much lower can it get??? What do you think you can sell that bond for in 5 years? In 5 or 10 years from now where will interest rates be?
We really have this incommon !!!
b d
squash500 said:
We really have this incommon !!!
b d
squash500 said:IMHO, a good alternative to equities might be to buy some corporate bonds? For example, bonds issued by banks such as TD and Royal Bank etc. These type of bonds have really been beaten down in price lately.
A good product IMHO to buy would be the XCB etf. It's present yield is 5.1%. This product would also be good for TFSA accounts as well.
Disclosure----I am not a financial advisor
big dogie said:
Oh no, I'm short long treasuries. I've got a lot of put options on TLT, the long treasury ETF. What I meant is that you can get some investment grade bonds of companies with pretty good balance sheets paying you 10-14%....that's a good bet. Remember that stocks' long term annual return, dividends+annual capital appreciation, is only 8%. When you can get substantially more than that with a bond, which has far less risk, then do your due diligence on the financial condition of the company and, if its kosher, jump right in. Some stocks are dirt cheap, though.
I'm taking a flyer on a bunch of small junior penny mining stocks, some of which are actually just about to start producing in 2009 and 2010, selling for less than the cash on balance sheets, are debt free, etc. I just can't resist...they're just such a steal. I usually don't touch such speculative stuff, but it's doable if you buy at least 10 different companies sharing similar characteristics from a financial point of view, but diversified geographically and to minimize company-specific risks like management, fraud, pulled financings, the CFO losing the company in a divorce settlement after being caught fucking the secretary, etc. Check out junior miners....there's a bunch in the Northern Miner and Investor's Digest that were recently featured.
