Canadian Stocks and Oil Slides Further

On the plus side, gas prices are cheaper.

On the negative the side the Canadian economy is getting whacked by the slide in oil prices.

It’s been nine straight days of losses in the S&P/TSX, which is down 7.4% in that time.

Analysts at Morgan Stanley projected Brent oil may slump to as low as $20 a barrel on strength in the dollar. Brent dropped 6.7 percent to $31.32 a barrel in London. Bank of America Corp. cut its average 2016 Brent forecast to $46 a barrel from $50.

“Risk appetite will not return until we start to see crude carve out a bottom,” said David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates Inc., in a note to clients.

The S&P/TSX fell 1 percent to 12,319.25 at 4 p.m. in Toronto. The gauge capped a 20 percent plunge from its September 2014 record on Jan. 7, hitting a magnitude in declines commonly defined as a bear market. Canada was the second Group of 7 country to see its benchmark enter a bear market, after Germany’s DAX Index did in August.

Are you selling, buying or staying put?

Read the full article here.

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Carioca Canuck
Guest
Carioca Canuck

Yes…..but……they’ll be building equity……LOL !!!

elvince
Guest
elvince

“My brother bought a house in the Calgary vicinity about 6 months ago”

Ouch! He’s like the stock market investor described by BBB and Space, except for RE. It’s like he bet his whole portfolio on Bear Stern or Lehman in 2008 just before they went belly up.

At least most stock investors don’t litterally bet the house on a single asset.

pricedoutfornow
Guest
pricedoutfornow

My brother bought a house in the Calgary vicinity about 6 months ago, in a brand new subdivision. Well, they bought, but didn’t move in until last month, when it was finally completed. Sad thing is, all equity has evaporated from the time they signed to when they actually moved in. Bought for 5% down (of course). Sad. We all tried to warn him, but I think he was eventually talked into it by his wife. I looked on MLS and similar properties down the street are already being sold for at least $50k less than what they paid, plus discounts being offered by the developer. Bad, bad timing.

space889
Member
space889

@Shut It Down Already – And with ETF and Buy & Hold being preached everywhere, people still don’t actually achieve general market return, that’s how bad the average joe is at managing their own $$$. The big main reason is people don’t handle volatility very well, they buy when prices are rocketing higher and sell when prices are going down like a rock, and end up doing the wrong trade at the worst time.

People tend to do better with RE investment because there is no daily price and it ends up being buy and hold for long time.

crabman
Guest
crabman

@93, Wrong.

Over 5 years, the Vancouver benchmark home is up 31% — in US dollars, it’s 0%..

Over those same 5 years, the S&P 500 is up 48%.

Bull! Bull! Bull!
Guest
Bull! Bull! Bull!

@Vanco

want to beat the stock market? just buy a house. every single person in this city who is paying off a mortage is beating the stock market. it’s a no brainer.

Vanco
Guest
Vanco

Dave. congrats if you are beating the market. you are certainly the rare few.

most investors think they are above average, but the average investor significantly lags the market.

what can you get for 700K now days, IWS?

Oracle
Guest
Oracle

Patriotz 2.0?

Oracle
Guest
Oracle

@ south sea

Why you keep posting propaganda news pieces. ? At least comment on them. Otherwise you’re confusing readers even more.

patriotz
Member
vangrl
Member
vangrl

Julia lau – AKA dead guy in trunk of car.

She’s running tracks around her former Realtor buddies, selling out Van to offshore money like we’re 100% Zoned luxury Condos!

She’s erasing facebook posts as fast as our dollars falling

Gregor & buddies – “what? we know nothing about this”

Guy Smiley
Member
Guy Smiley

@64 – What a bunch of racists

Guy Smiley
Member
Guy Smiley

@79

A spokesman said Mayor Gregor Robertson has not received “any new applications” for the Molson site.

“It’s in Metro Vancouver’s regional context statement, and the City … don’t have any plans to change it.”

Translation: plans for this site will not even be discussed until Gregor, members of the Campbell family and some other government insiders have been sufficiently invested at seed price, after which the permitting of anything these investors can afford to build here will be a given.

I'm with Stupid ^
Guest
I'm with Stupid ^

So looks like this bear is going to be capitulating in the next year or so, I will try to document the process here.

Budget 700k ish.
DP 300-350k

God save us all.

Dave
Member

Ya, because of lower earnings from China. I think China’s going to be just fine.

vangrl
Member
vangrl

#77

This isn’t an earnings correction, it’s china correction

Piklishi
Guest
Piklishi

Don’t buy in Calgary right now, in 6 months or so you should see the real decline. If the oil goes to 20 as predicted the houses will drop a lot. Unfortunately there will be no more jobs. I feel bad for them. These big companies when it comes to balance sheets, they don’t think about the people and their families. I hope the Majority of Calgarians have paid their houses off and don’t have debt so they can survive these tough times.

Yunak
Member
Yunak

I know you are but who cares?

Shut It Down Already
Guest
Shut It Down Already

Yunak, the irony is you think you’re superior.

Yunak
Member
Yunak

WTF… Now those fuckers hit the hart of the city? Hopefully it will be the last straw before shit starts flying all over the city.

Chinese syndicate invites investors to join project on site of Molson brewery; Vancouver city officials say it’s news to them

http://www.theprovince.com/business/view+apartment+development+site+vancouver+iconic+molson/11650272/story.html

Shut It Down Already
Guest
Shut It Down Already

Dave, you don’t think Teck will go the same way as Patriot Coal, Arch Coal, Walter Energy, and probably Peabody?

Dave
Member
Vanco, I went 90% US stock or ETFs. It was a no brainer to me at parity. Why buy a Canadian fund? You pay way more to hold that product and have less liquidity. I generally stick with Us funds for investing. I go half ETFs and half direct stocks. No bonds or boring stuff. There have been times I have sold most of my portfolio, but I have been pretty inactive on shifting my portfolio for a couple years now. I trade stocks too and it’s much easier to make decisions and not second guess yourself using that perspective. You can buy balanced portfolio ETFs too if you want to make decisions easy. Myself, I enjoy the idea (or lie) that I can beat the market (S&P), which I have done since taking over my portfolio three years ago.… Read more »
Vanco
Guest
Vanco

New year, but the same venomous ramblings from the same embittered bears.

It’s really comical if the reality is not so sad.

Vanco
Guest
Vanco

want market return, buy ETF? Only if it’s that simple.

How do you decide on allocation? You would have made a bundle if you used unhedged vanguard funds, but lost or broke even if you hedged. How much Canadian stock did you have? big loss if you did.
Do you have the guts and discipline to hold on in the face of a 20-30% drop? If you do, congratulation because most people cannot.

UBC in crisis mode
Guest
UBC in crisis mode

This guy bought 1561 Westbrook Crescent about 4 years ago, now asking $9,980,000 after a pice drop, still big profit.

Sale Date March 1, 2011
Sale Price $5,275,000