Canada’s stock market is the 2nd worst performer in the world
- Thread starter B00Mer
- Start date
No this is good, prediction are BC and Toronto real estate will take a huge hit.
A drop of about 70% in value. Homes will be affordable again
Food prices will hit all time highs, fuel oil will get lower
This is great news!!
I think the COVID-19 will be the biggest economy killer.
Fear, uncertainty, death, lack of investments and a sock boy as a leader sending Canada's economy into a dumpster fire
Fear, uncertainty, death, lack of investments and a sock boy as a leader sending Canada's economy into a dumpster fire
Will coronavirus trigger a global recession?
https://www.theguardian.com/busines...er-global-recession-donald-trump-trade-policy
https://www.theguardian.com/busines...er-global-recession-donald-trump-trade-policy
The TSX started the day down 800+. It is now hovering around -550 points. Oops................it just fell to -577. I guess that's what is meant by a volatile market.
Might as well shoot yourself now then, huh. lol
Hubby and I will stick around and watch the carnage and panicking.
Cdn market is second worst in the world?
Uh - that MIGHT NOT be a bad thing!
Maybe it measn we kept ou feet on the ground more?
I know people with quite average investments who saw their Cdn stocks INCREASE by 28 percent in 2019!
And now that Cdn stocks have dropped by 20 percent or so it means very little!
The stock market is a stupid game for the kind of people who ran three card monte grifter games
on rubes and bumpkins when they were younger!
Most of the stock market is PAPER MONEY!
Easy come and easy go!
It looks to me as if the ordinary investor is more focused on dividends being paid out!
Those looking for logic in a stock market might as well seek out Leprechaun gold!
Consider:
Here is an article illustrating the utterly contradictory messages of LIE-beral economic policy! With some comments of my own in brackets):
Here's what could really sink the global economy: $19 trillion in risky corporate debt
By Julia Horowitz, CNN Business
Published March 14, 2020
Companies have spent the years since the global financial crisis binging on debt. Now, as the coronavirus pandemic threatens to push the world into recession, the bill could come due — exacerbating damage to the economy and feeding a meltdown in financial markets.
(Gosh - it was only in 2015 that LIE-berals and NDPees were making plans to RAID corporate assets as LIE-berals and their idiot cousins regarded money sitting in savings accounts as being USELESS! LIE-berals DEMANDED economic activity so they can benefit from sales tax GRAVY!)
Looking to take advantage of low interest rates, companies have rushed in recent years to issue bonds whose proceeds could be used to grow their businesses. Corporate debt among non-banks exploded to $75 trillion at the end of 2019, up from $48 trillion at the end of 2009, according to the Institute of International Finance.
(In other words - companies HAVE TAKEN ADVANTAGE of the hundreds of billions of dollars worth of civil service union HOG gravy that is flooding the markets looking for good investments! And with LIE-berals deliberately setting interest rates SO LOW for so long- such ideal investments are hard to find!)
(In other news - we should ASK how much of this new biz debt is related to biz recently set up in third world countries by western biz owners? It is the worst of both worlds- third world dictators presiding over the new biz and western HOGS ALWAYS demanding gravy - with biz like General Motors caught out investing exactly the same sums in China as they got in loans and grants from western govt during the 2008 mortgage melt down!)
As the coronavirus spreads — touching off a plunge in oil prices and a collapse in travel, and shutting factories from Italy to China — there is increasing alarm that companies in the energy, hospitality and auto sectors won't be able to make their bond payments. That could trigger a spree of ratings downgrades and defaults that would further destabilize financial markets and compound the economic shock.
(The auto sector has been in trouble for years- witness 2019 when Our idiot Boy wrote off $2.8 billion dollars in loans to General Motors and Chrysler - that were DEEMED UN-COLLECTABLE!)
(And Wuhan Pestilence is having a hard effect on Cdn hospitality biz since Our idiot Boy refused to quarantine travelers thus letting the Pestilence LOOSE here!)
(As for the drop in energy prices and usage- it is a DOUBLE HIT for LIE-berals since they are losing a ton of tax- and Cdns are getting a good look at what life would be like without fossil fuel - if LIE-berals do succeed in closing down the Cdn oil patch!)
(And it aint helping that the air is rapidly cleaning now that so few planes are flying - thus giving credence to such groups as the Swedish “Flight Shame” group that advocates for trains and against filthy air travel! And in fact air planes are responsible for the MAJOR PORTION of all pollution related to transportation -way more even than cars!)
"This certainly is another match being lit [near] the bonfire of corporate debt liabilities," said Simon MacAdam, global economist at Capital Economics. "There's definitely potential for systemic risk."
(IN other words the people who told us they had all our fiscal problems ironed out after the 2008 mortgage melt down HAVE LIED TO US! Even worse - LIE-berals have been insisting that their INSANE deficits WERE manageable as long as there was NO major market upheaval! OOPSIE- that is what we have now- upheaval!)
(Not that LIE-berals appear to MIND hosting Wuhan Virus - as it gives them the EXCUSE they need to spend like drunken sailors in hope of buying a new majority govt later! With the ADDED BONUS that with parliament closed - the LIE-beral minority govt is SAFE from a non confidence vote- for some months to come!)
Investors became increasingly anxious about corporate debt this week as stocks sold off and crude prices nosedived. The ability to buy or sell securities in corporate debt markets has become much more difficult. And the extra returns that investors are demanding to hold corporate debt over more stable government bonds have shot up, signaling that they're now viewed as much riskier holdings.
(As mentioned - HOGS NEED their gravy! But much of the market upheaval appears to be from BAD LOANS! Speculators buying on margin - purchasing $1000 worth of stock and putting down $100 and planning to sell when the stock reaches $1100 -so they can pocket their original $100 investment plus the $100 increase in price - HAVE NOW BEEN CAUGHT OUT_ it is they who MUST SELL at any price in order to pay back their loans - recall they bought $1000 with $900 of that being BORROWED MONEY - and thus as prices FALL - they MUST pay the difference between what they paid and the NEW LOWER PRICE - thus the PANIC SELLING as people too clever for their own good get tripped up!)
The SPDR Bloomberg Barclays High Yield Bond ETF dropped more than 6% this week, while the iShares iBoxx $ Investment Grade Corporate Bond ETF fell more than 8%. Bank of America told clients on Friday that volatility had skyrocketed and outflows from corporate bond funds were at record highs.
(More conservative minded investors KNOW firstly that the market ROSE 25- 30 percent in 2019 - thus a ten or even twenty percent drop in market price IS NOT a disaster - unless you have BAD LOANS! After all the market WILL REBOUND in time but those who borrowed DO NOT have time to wait!)
The anxiety is pegged to companies that rely on stable energy prices and tourism to generate cash. When business gets tougher for these firms, it could prevent them from servicing their debt, leading to defaults. Ratings agencies could also start downgrading many of these companies, forcing some bondholders to sell.
(Yes - to bad Cdn hospitality industry cannot even rely on CDN tourists any more as Wuhan Pestilence invades our unguarded land and shuts all things down!)
"Default and downgrade risks have increased to their highest levels since the start of the current business cycle," Lotfi Karoui, chief credit strategist at Goldman Sachs, told clients this week.
(This is the great fear of LIE-berals - that there would come a day of reckoning - with DEFLATION rearing its frightful head - as the surviving biz cuts prices and cuts again in a frantic effort to lure in the few remaining customers! Deflation means LIE-berals CANNOT handle their debts - the Emperor would not just have no clothes - the Emperor would also be BANKRUPT! How SMUG LIE-berals were - thinking they could juggle all the balls forever without eventual harm!)
Much of the risk lies with energy companies, which have ramped up borrowing in recent years to build pipelines and fund other projects. Those companies now face acute pressure due to plummeting oil prices, which have dropped 50% since early January amid evaporating demand for fuel and the implosion of an alliance between major energy producers Saudi Arabia and Russia that had helped prevent oil from flooding onto global markets.
(The price war between Russia and Saudi Arabia was a long time in coming - Russians have been meddling in the Middle East for several decades now and their support of Syrian dictator Asad and nuclear nutbars in Iran against the Saudis has ignited the old Shia/Sunnie religious war!)
(In addition - Yankees are defending the west against RUTHLESS Red Chinese who want to radically alter world power and economics IN THEIR FAVOUR! China is struggling with the consequences of its “one child” demographic MESS and for philosophical reasons they cannot simply IMPORT immigrants as western lands do to take up the economic slack! Yankees NEED oil revenue to prevent us all from being FORCED to speak Mandarin in a Chinese version of the Greater East Asia Co-prosperity Sphere! China wants to rule all - to protect its Soviet Socialist govt and privileges!)
"Oil producers who were depending on the higher prices to pay back their loans so they could drill for oil are under a significant amount of stress," said Andy Lipow, president of Lipow Oil Associates, a consultancy based in Houston.
(So MORE BAD loans - as LIE-berals repeatedly assured us that their carbon tax SCAM would ENSURE ever higher prices and biz believed them!)
(OH well - Wuhan Virus will pass - like SARS and Bird Flue and Swine Flu did and the markets will rebound -some day! Meanwhile LIE-berals are working hard to devise an explanation why NONE of this mess is THEIR FAULT!)
(LIE-berals even INSIST they still have enough cash to help us - while quietly IGNORING the $26.6 BILLION DOLLAR YEARLY DEFICIT that existed BEFORE Wuhan Virus hit us so hard!)