1. Bank of Canada... "Well lets leave the rate at 5%... for now, but you know we might have to raise it again..." its all about the number 2... 2% "And ya, its gonna be this way for a long time.... probably until the end of 2025"
https://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.7007264#:~:text=The%20Bank%20of%20Canada%20has%20decided%20to%20keep%20its%20benchmark,10%20times%20since%20last%20year. - jeez I hope not...
2. The US is doomed, no matter what the FED tells us... https://www.cnbc.com/2023/10/26/the-us-consumer-is-walking-towards-a-cliff-strategist-warns.html
3. The market, including oil is in a tail spin
So, you gonna jump? If so which way? And what is with Bond Yield's, they up? they down...? Does it matter ?
Who knows... I sure don't, if your like me, its all just confusing crap... and mostly bullshit. But the long and short is, the BOC and Fed are extremely short sighted, and seem to believe they can engineer a perfect equilibrium... really? Well its not happening today. Things are turning to shit for a lot of people. Tech is shutting down in San Fran, where vacancies rates are 30% and growing. All the big tech are trimming the fat, not expanding, and Banks are propping up waiting for foreclosures to happen and hoping their bank doesn't wind up like another statistic. ( 2 banks failed last year due to bad debt, and too high interest rates)
And what does this have to do with jumping, and being over 60?
Well for one, this blog is not about retiring early, its about protecting what you have saved for the last 30 years, and putting it to work wisely. Its about creating a passive income, or at least not having to take a job at Tim Hortons to make ends meet. There has been only one asset class that has benefitted from all the turmoil, fixed income. GIC's T-bills, and other cash instruments have done ok, some would say very well compared to Equities and Commodities and we don't even talk about Bitcoin or Gold. Oil has done well for me, but I think that ship may have sailed, we will see. I have sold 80% of my Oil stock, (ERF.TO) and hold cash now in my trading account, not the best place to be but since you pay commission's in and out of trades, I am ok letting it ride for now. Oil will be a discussion for another time.
So I am choosing not to jump, but stay the course. Horde cash and wait for the opportunities to arrive. Time will tell, lets come back here in 4 months and see where we're at, shall we?
Comments