Falling Markets

The TSX index fell by about 450 points

The USD-CAD fell to 0.97

The GoC 5 year bond fell to 1.286

So given all we know about real estate investing and price-rent ratios to determine fundamental value, perhaps a few can chime in on what they think is going on in Canadian and world markets and how current valuations align with future earnings.

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Annonymous
Annonymous
8 years ago

Great forum here…If someone wants to slit their wrists.

CanuckDownUnder
CanuckDownUnder
8 years ago

@Best place on meth:

I'll wear my Nikkei 35,000 t-shirt to the party.

The Aussie stock market tried to battle back today but ended up losing another 1.6% by the end of trading.

bubba
bubba
8 years ago

The Secret Financial Network Behind "Wizard" George Soros http://www.questionsquestions.net/docs04/engdahl-… Soros proclaimed in March 1993, with great publicity, that the price of gold was about to rise sharply; he said that he had just gotten "inside information" that China was about to buy huge sums of gold for its booming economy. Soros was able to trigger a rush into buying gold, which caused prices to rise more than 20% over four months, to the highest level since 1991. Typically for Soros, once the fools rushed in to push prices higher, Soros and his friend Sir James Goldsmith secretly began selling their gold at a huge profit. Then, in early June 1993, Soros proclaimed his intent to force a sell-off in German government bonds in favor of the French, in an open letter to London Times Financial Editor Anatole Kaletsky, in which… Read more »

Vansanity
Vansanity
8 years ago

Hangseng is down another 300pts thus far in trading today. Nearly 10% lost this week of the index.

China's manufacturing may shrink for a third month in September, the longest contraction since 2009.

China's inflation rate soared forcing them to raise interest rates and curb lending to cool inflation. Meanwhile a deepening debt crisis in Europe and a recession in the U.S. threaten to stall a global recovery.

The perfect storm that formed in 2008 appears ready to make an encore performance, this time with more debt!

What are they going to do this time?

Li Kai Shing
Li Kai Shing
8 years ago

Futures?

Confuscious say " Invest in past..more predictable"

Anonymous
Anonymous
8 years ago

@McLovin:

Is there a good stock forum you recommend?

pipewrench
pipewrench
8 years ago

Dyugle

my bad. Nikkei is closed , teaches me to read CNBC on the fly…

http://www.bloomberg.com/news/2011-09-22/china-ca

“Fiscal capacity is very limited,” and “monetary policy is already used pretty much to the limit” in terms of interest rates, quantitative easing and other tools in developed and developing nations, Yi said. "

China is willing to lend a hand but is holding its cards tightly. Good plan to be cautious.

Dyugle
Dyugle
8 years ago

Nikkei is closed for a holiday, futures are up.

RippedtoShit
RippedtoShit
8 years ago

I fear deflation.

But I think the central banks will not err on the side of restraint this time.

OR

Maybe they are that stupid/controlled and they will.

I agree with Meth that we have an over leveraged society in the western world – but we only represent ten percent of the bodies on this planet. He's probably too self absorbed to realize this. Or maybe not.

RippedtoShit
RippedtoShit
8 years ago

http://www.bnn.ca/News/2011/9/21/Beware-of-bond-b

here it is

remember, everyone is now on the deflation/equities bust bandwagon. Meth would not even invest money if it was freely given to him (dufus)

so, draw your own conclusions.

RippedtoShit
RippedtoShit
8 years ago

I agree with McLovinIT (I think), in fact I think the stock market is set to zoooooooom higher.

Big bubble in bonds/safety. JMHO.

I guess Meth thinks a cup of coffee is going to decline in price (he might be right, but I beg to differ). All this stimulus money will catch.

watch this and let me know your thoughts – thanks –

Li Kai Shing
Li Kai Shing
8 years ago

# 26 @pipa:

Quit swearingk in church ……you F*ckink C#cksucker

bubba
bubba
8 years ago

# 30 @Anonymous:

THEY Overpaid

House is in ALR….mostly acreage can't do F#ck all with… subdivide? low probability…. therefore wasted equity

7000 sq ft house at say $250/sq ft replacement = $1.5 million.

First 1/2 acre = THE value…rest is dogshite.

When market dives = hooped

DaMann
DaMann
8 years ago

last post was mine

Anonymous
Anonymous
8 years ago

@whydoItry:

"If you can’t do a simple interest rate calculation, I can’t help you."

I was being genuine not sarcastic. Not hard to calculate an interest rate on a PRICE but you stated that you use a 9.25% interest rate to DETERMINE a price. Do you have a monthly payment in mind then use 9.25% interest rate to come up with the price?

That's what I was on about. Saying "I use a 9.25% rate to determine a price" doesn't really say much does it.

Inventory
Inventory
8 years ago

Sept 19-22, 2011 Richmond New Listings 166 Price Changes 66 Solds 64 Vancouver West New Listings 255 Price Changes 94 Solds 102 Vancouver East New Listings 99 Price Changes 48 Solds 52 North Vancouver New Listings 81 Price Changes 34 Solds 35 Burnaby New Listings 132 Price Changes 67 Solds 35 Coquitlam New Listings 97 Price Changes 43 Solds 34 West Vancouver New Listings 42 Price Changes 17 Solds 17 Ladner New Listings 9 Price Changes 7 Solds 7 Port Coquitlam New Listings 39 Price Changes 17 Solds 19 Maple Ridge New Listings 64 Price Changes 36 Solds 18 New Westminster New Listings 39 Price Changes 22 Solds 23 Pitt Meadows New Listings 7 Price Changes 4 Solds 7 Port Moody New Listings 49 Price Changes 17 Solds 10 Squamish New Listings 9 Price Changes 7 Solds 9 Tsawwassen New… Read more »

Best place on meth
Best place on meth
8 years ago

Maybe I'm not as smart as a realtor, especially Misty Jackson, but I'm just not able to make the math work on this one.

http://vancouver.en.craigslist.ca/van/apa/2588266

Inventory
Inventory
8 years ago

Sept 2008 / Sept 2011

Bowen Island 84 / 127

Burnaby East 224 / 162

Burnaby South‎ 1002 / 692

Burnaby North‎ 981 / 751

Coquitlam‎ 1550 / 1063

Islands‎-‎Van‎. ‎& ‎Gulf 196‎ / 295

‎Ladner‎ 209 / 139

Maple Ridge 1177‎ / 1090

New Westminster‎ 741 / 506

North Vancouver‎ 1064 / 903

Pitt Meadows‎ 183 / 187

Port Coquitlam‎ 663 / 470

Port Moody‎ 586 / 445

Richmond‎ 2639 / 2343

Squamish‎ 516 / 514

Sunshine Coast 1060‎ / 1240

Tsawwassen‎ 226 / 198

Vancouver East‎ 2117 / 1291

Vancouver West‎ 3978 / 3038

West Vancouver‎ 790 / 627

Whistler‎ 701 / 879

Total 21014 / 16978

Best place on meth
Best place on meth
8 years ago

17K party tomorrow, and on a Friday no less. How convenient is that!?

Bring cold beer everyone and maybe you'll even get to wear those DOW 10,000 hats from 1999.

Woooo!!!

McLovin
McLovin
8 years ago

We are on the cusp of 17,000.

When was the last time we had 17,000? I wonder how many will drop off at the end of the month?

McLovin
McLovin
8 years ago

"McLovin if you have not figured out the credit bubble will tank stocks just like real estate you will have to learn the hard way. The only thing keeping stocks up was the government pumping money into wall street. As of yesterday the Fed announced that is done. Europe is bankrupt. Game over." I respectfully, disagree with the above statement but that is what makes a market. For every seller there is a buyer and vice versa. Blue chip world class companies trading at reasonable multiples with high dividend yields will thrive and survive in any enviroment. In fact, a handful of companies I am following were even or barely down today. I am licking my chops at some of the deals out there and have the cash to deploy. I was even slightly dipping my toe today. It will… Read more »

paulb.
paulb.
8 years ago

Nice day for the stock markets… Holy crap! How will this all play out? Anyways…

New Listings 228

Price Changes 122

Sold Listings 89

TI:16967

http://www.laurenandpaul.ca

Find me on linkedin!

Laibach
Laibach
8 years ago

@Best place on meth:

Very prudent investment at this point.

pipa
pipa
8 years ago

i have zero tolerance for this casino economy. in 2008 i was waiting and waiting. it took 6 months to reach the bottom in march. after that it was nothing left to cash. this time i am done with one day. i am not going to support financial terrorist with my hard earned dollars.

fuck rrsp, fuck the stockmarket, fuck the banks. it is all confidence game that will collapse one day.

Anonymous
Anonymous
8 years ago

"18 acres, 7000 square foot house. Sold for $7 million"

That is under 400K per acre or 100K per 1/4 acre lot. If the property can ever be sub divided this may be one of the few property purchases that is not worth less than today in 25 years.

Of course it likely will not be sub dividable even in that time frame but at least there is a hope in making some money.