If I Had A Million Dollars
- Bob Smith
- Apr 4
- 3 min read
Well, I would not be buying John Mericks remains, but I might just be buying property ?
Seems now might be the time, listen to this from FP and our good old spokes person from Royal Lepage, and yes, it is biased, but if you read between the lines, you can get a feel of what is happening, and how it may be affecting the spring thaw in real estate across Canada.
As I write, the stock market has crashed for 2 days in a row, (more on that later), Hudson Bay, a Canadian Icon for more than 100 years, has called it quits, seems they can't keep up with Amazon and Walmart, and has gone the way of Sears, Eatons, Woolworth, and Zellars. All cornerstone dept stores that are now a thing of the past.
And all we needed was another nudge to create a heavey sigh among buyers, to start the collapse. Yes the sky is falling, but as I have said, we will survive, and opportunity is knocking, both in the Real Estate markets, and in the stock markets. Which leads me to this...
Long and the Short, cash is king, I didn't coin this phrase, it was investors much wiser than me, like Warren Buffet (CEO of Berkshire Hathaway) and Jamie Dimon (Hedge Fund investor) that promote the idea that market crash's are investment opportunitys. Listen to this article and read between the lines to see where we are going.
This latest turmoil is only 2 days in the making, but was preceded by an already weak economy, hence the drop in interst rates by both our countries to offset and get back on track, which for the most part, has been effective. But now a wrench has been thrown in, by one man, and he is not a very educated man. You dont trim the trees by burning down the forest, yes it will grow back eventually, but people will not care. Americans hate 2 things, money being taken out of their pockets, and overseas wars that kill americans needlessly. Well we have one of these happening right now, and it cannot continue.
The consensus is the upheaval will be short lived. The President in his normal wishy washy way, will snap his fingers again, and say... "Hey I was only kidding... no tariffs for you" After all he has stated it was to cull the amount of Fentanyl coming into the US from Canada (which has been proven to be complete rubbish, like a couple of Kilos in 5 years) So he has a back door to get himself out of it. All he has to do is again fabricate numbers and say "Look, it worked... I succeeded and now can drop the Tariffs"
But we will still slide into a Recession, most feel we are already there and just don't know it.
I have been balancing investments for the last year, for a variety of reasons, and your situation will always be different than mine, but for the most, even within the last week I sold some poorly performing equities, and converted to Bonds, its a no brainer. T bills and cash are now underperforming, so can only be used for short term savings (you plan to spend this year, or need as a cash cushion, like me) I am retireing, so need cash to fund, but Bonds can be liquidated quickly, and at last look, my Bond accounts were up about 5%, in the last several months, so not a bad place to stuff your cash. Until the rate reduction cycle has ended, Bonds will far exceed cash accounts. Then once this Recession is in full swing, we start a buy back program of all our favorite stocks, equities, ETF's and tech funds. Wont that be great... but we are going to have to wait this out and see what happens.
Ok, time to polish my crystal ball again, "Murky it looks to me..." as Yoda would say...
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