Canadian Money Forum banner

61 - 69 of 69 Posts

·
Registered
Joined
·
157 Posts
It would help if you explain why you think that's the case.
reasons:
Immigration - Canada accepts around 300k immigrants and about 30% of them come to ON. around 250k temporary workers and students
Health care - In the US , people lose health insurance when they lose their job so they will be forced to sell their property. In Canada, you only need to worry about your income/health . you will not lose your home due to Hospitalization costs.
one city - Canada has only one true big city with diverse employment opportunities. Even that city can expand only two directions due to geographic/weather restrictions
Money - Money can be laundered very easily in Canada vs US and RE is the best place to park that money
Economy - RE is the only driver to the economy now. For ex: Federal govt borrowed 350B to address COVID related economic/health issues. They will do their best to keep RE moving upwards . RE supports almost 23 different tades/industies .
Cheap money - Mony printing will continue forever. We will never see historic mortgage rates ( 5-6%). Many corporations are also borrowing lot of money . If interest rates are raised , Chinese state run companies take over these indebted private entities. already happening in may countries around the world. Corporates run the govts so they will make sure rates will stay lower forever.
Banks - They now know that if anything worst happens to them tax payers will come to their rescue so they are fine to take extreme risks. detached home in GTA is approaching 800k . How these people are getting mortgages ? Banks are pumping money into B lenders, who intern giving loans to risky borrowers.

I feel sorry for the pole who needs to draw income every month . Given low GIC rate they also have to take risks( investing in stocs etc) to get the income required.

Govt don't need people who save and invest.
 

·
Registered
Joined
·
36 Posts
Discussion Starter #62
@agent99 : I see. So you do have money coming in but when you take inflation into account then you are losing a bit of money because its purchasing power went down a bit. I will take a look at the balanced etfs. Thanks.

@Just a Guy : That is cool. Not an easy thing to do. Would you say your portfolio is 100% equities then? Also, do you invest in ETFs at all?

@james4beach : How did you determine the inflation rate? Also, is that just for canada? What do you mean by "personal inflation rate"? You make an interesting point with the gold graph. Did not think of that at all.

@AltaRed : That makes sense to still have something stable in your portfolio. I was thinking about something like xsb as well because it is more short term

@MarcoE : When interests go back to their pre covid levels would that not be a good time? but yes timing is quite difficult and now I am hearing that we wont get those pre covid level interest rates for 5 years. But yes you make a good point and I will think on it.

@fplan : you do make a good point. The RE market is pretty hot right now. But there are more factors to consider. Not everyone will get approved for a mortgage and not everyone is willing to accept just a 5% down payment and also all your money then starts going towards the mortgage.
 

·
Registered
Joined
·
17,630 Posts
@james4beach : How did you determine the inflation rate? Also, is that just for canada? What do you mean by "personal inflation rate"? You make an interesting point with the gold graph. Did not think of that at all.
See
 

·
Registered
Joined
·
7,003 Posts
My stock portfolio is all equities, no etfs. why pay fees when you can buy direct? Also I only have stuff I want to own, not extra junk stuffed into an etf. I also have businesses and real estate for diversity, don’t regret any of the allocation, makes me a small fortune
 

·
Registered
Joined
·
17,630 Posts
My stock portfolio is all equities, no etfs. why pay fees when you can buy direct? Also I only have stuff I want to own, not extra junk stuffed into an etf. I also have businesses and real estate for diversity, don’t regret any of the allocation, makes me a small fortune
No problem with going all single equities, if you are OK managing them. It takes a lot of work and skill.

Index ETFs are managed too. I don't know what you mean by 'extra junk'. The indexes are carefully constructed portfolios which are managed over time. For people who don't want to stay on top of an individual stock picking portfolio (maybe people who don't have the skills for it or don't want to spend the time) the ETFs are a good way to go.

When you hold the S&P 500 or TSX Composite index ETFs, you are paying a portfolio manager (the S&P committees) to construct and manage those portfolios for you. Over time they have proven that they make good portfolio management decisions, for a tiny fee.
 

·
Registered
Joined
·
7,003 Posts
Extra junk is stocks that I don’t want in my portfolio. They are “carefully constructed“ by someone else, not me. That someone else isn’t interested in my money, and they probably don’t invest in the etf themselves so it pro isn’t that good of a portfolio. My portfolio is constructed by me, for me and invested in by me. It’s in my best interest to get it right.

not sure why everyone thinks it’s a lot of work, I barely spend any time doing it. I look for companies I know and understand, then buy it during a crash and ignore if from then on.
 

·
Registered
Joined
·
996 Posts
Sometimes true though not always. There are investors that would do worse if they set a reasonable asset allocation & stuck to it.
There may be investors that could do better by altering their AA, but it is unknowable ex ante.
 

·
Registered
Joined
·
36 Posts
Discussion Starter #69
@james4beach : Thanks I will check it out.

@Just a Guy : I see. I know you said you have real estate but do you invest in reits as well? Also, do you buy stocks in bulk during a downtime(100 or more)? I ask because constant trading brings a lot of trading fees with it which will hurt your gains. I know some companies are mostly recovered from the covid stock crash but some companies are still discounted which would make it still a good time to buy.
 
61 - 69 of 69 Posts
Top