Investing

[Merged] Another bloody red day on the TSX

  • Last Updated:
  • May 18th, 2018 2:46 pm
Member
Dec 23, 2008
332 posts
58 upvotes
Toronto
YTD -1.8% vs. SP500 +10%

Wow, i'm somewhat surprised to see the huge gap between the two markets.
Deal Expert
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Sep 19, 2004
21349 posts
3609 upvotes
Waterloo
endokuken wrote:
Aug 11th, 2017 11:44 am
Was waiting for this thread to come back and it seems like the past couple of days has been brutal let alone this year for Canada, especially energy sector although financials are also being flat to negative. I'm looking to lessen my exposure to Canada and increase U.S., global and emerging markets more
mojojojo911 wrote:
Aug 11th, 2017 12:06 pm
YTD -1.8% vs. SP500 +10%

Wow, i'm somewhat surprised to see the huge gap between the two markets.
SP500 does have strong Tech and FAANG stocks, and Trump ;)
It'd be better if we live in USA and index-investing in SP500

Someone go grab the YTD World index performances? Canada is like in the worst 3 countries :( and we're here on RFD saving pennies, LOL
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Dec 6, 2006
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jerryhung wrote:
Aug 11th, 2017 12:13 pm
SP500 does have strong Tech and FAANG stocks, and Trump ;)
It'd be better if we live in USA and index-investing in SP500

Someone go grab the YTD World index performances? Canada is like in the worst 3 countries :( and we're here on RFD saving pennies, LOL
Bad TSX is bad enough.
Then bought SP500 index.... ETF..... in CAD$ for the past year. SP500 goes up, yet the ETFs are flat or even down due to the stupid USD/CAD rate.
Quite painful to watch.



But good opportunities can't happen without these red days...
Sr. Member
Jan 5, 2015
594 posts
145 upvotes
Edmonton, AB
I hope it keeps going south.
I'm loving it.
Smiling Face With Open Mouth
Sr. Member
Oct 21, 2014
845 posts
623 upvotes
Burlington, ON
boyohboy wrote:
Aug 11th, 2017 12:21 pm
Bad TSX is bad enough.
Then bought SP500 index.... ETF..... in CAD$ for the past year. SP500 goes up, yet the ETFs are flat or even down due to the stupid USD/CAD rate.
Quite painful to watch.



But good opportunities can't happen without these red days...
The other way to look at it is that on your next buy of the ETF you get more for your CAD. That's how I think of it
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Nov 28, 2010
1030 posts
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Brampton
daverobev wrote:
Aug 11th, 2017 11:49 am
Sounds like selling low, buying high to me ;)

Time to buy more Canada.
I'm still dollar costing my way into all 3 regions. I just sold my overexposure to Canada and did a lateral to global because all markets got hit hard yesterday
Deal Addict
Dec 3, 2014
1185 posts
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Ontario
boyohboy wrote:
Aug 11th, 2017 12:21 pm
Bad TSX is bad enough.
Then bought SP500 index.... ETF..... in CAD$ for the past year. SP500 goes up, yet the ETFs are flat or even down due to the stupid USD/CAD rate.
Quite painful to watch.



But good opportunities can't happen without these red days...
Just hold. Unless you are super old when you eventually do sell your USD S+P etf, we will be living in a post-oil world and your USD will get you quite a few Canadian pesos.
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Jan 20, 2016
1658 posts
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Houston, TX
jerryhung wrote:
Aug 11th, 2017 12:13 pm
SP500 does have strong Tech and FAANG stocks, and Trump ;)
It'd be better if we live in USA and index-investing in SP500

Someone go grab the YTD World index performances? Canada is like in the worst 3 countries :( and we're here on RFD saving pennies, LOL
No need to live in USA to do index investing. If you'd follow "classical" asset allocation (~45% EAFE 50%US 5% CA) you'd have ~8-9% YTD both on nonhedged (XSP/XIN) or hedged (XSP/XEF) funds :)
A bit lower than US funds (~10-11%) but in order of magnitude

and they do not have TFSA, so beside 401k investments you have to pay taxes (and 401k you have to pay them as well but later) and imo do not have such preferential dividends taxation, so if take taxes into account, difference would be not so big, in some cases.
Make the Trudeau drama teacher again!
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Jan 14, 2009
1235 posts
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Vancouver, BC
llpresident wrote:
Aug 11th, 2017 1:31 pm
Just hold. Unless you are super old when you eventually do sell your USD S+P etf, we will be living in a post-oil world and your USD will get you quite a few Canadian pesos.
No kidding. The Chinese and HKers has been trolling us on the real estate market for the past 2+ years. They are about they get perma-banned though cuz somehow Canadians convinced ourselves it's the foreign capitalists' fault we became Venezuela lite.
Newbie
Jun 28, 2017
79 posts
22 upvotes
If you feel the new laws aiming to throttle foreign investment are unfortunate, you should take a moment to look at real-estate in Taipei. Mortgages are 30-40 years, a 200sq. ft "apartment" can be over $1 million, and housing is the most expensive in the world relative to the average salary. Yet a very large amount of apartments are empty.
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Sep 19, 2004
21349 posts
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Waterloo
From BNN, just one point of view
http://www.bnn.ca/david-cockfield-s-top ... D=16383905
MARKET OUTLOOK
The TSX index is showing signs of a bottom. Hampered by worries about NAFTA, low energy prices and higher interest rates, the TSX has underperformed the S&P 500 since early November, and in 2016 by some 12 per cent.
While U.S. equity markets appear fully priced in many sectors, Canadian equity markets seem more reasonably priced.
There is the potential for U.S. equity markets to have a rest and see Canadian equities play catch up, as Canadian corporate earnings growth has been good and the recent economic expansion has been better than expected.
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Deal Addict
Jan 14, 2009
1235 posts
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Vancouver, BC
Ismellofhockey wrote:
Aug 11th, 2017 7:56 pm
If you feel the new laws aiming to throttle foreign investment are unfortunate, you should take a moment to look at real-estate in Taipei. Mortgages are 30-40 years, a 200sq. ft "apartment" can be over $1 million, and housing is the most expensive in the world relative to the average salary. Yet a very large amount of apartments are empty.
Do the mainland Chinese buy lots of real estate in Taipei or is this happening absent of foreigners? Perhaps it is a supply issue and stagnant income issue like in Vancouver.
Newbie
Jun 28, 2017
79 posts
22 upvotes
It's both. Incomes have stagnated for the past 20 years, in spite of the main party's promises that closer ties with China would drive up the economy for all. But Chinese have also been storing their cash in Taipei. This has led to a construction boom, with supply far outstripping demand for housing, yet prices continued to climb because Chinese investors didn't care about rents. The fact that the main party (the KMT) is the richest party in the world thanks to all the property it seized when it took refuge on the island in 1949 has not helped. They have a vested interest in keeping prices high. But they're out of power now for only the second time since 1949, so I wonder if things might change. I haven't kept an eye on it recently.
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Dec 3, 2014
1185 posts
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Ontario
jerryhung wrote:
Aug 11th, 2017 8:15 pm
From BNN, just one point of view
http://www.bnn.ca/david-cockfield-s-top ... D=16383905
If only it were a zero sum game. If US goes down, Canada must go up this person says. As if the two markets are equals, taking turns going back and forth like a glorious race between two evenly matched competitors.

What if the Canadian market is fairly valued and US is overvalued. Does that mean the Canadian market will go up now? Why?

Or what if the Canadian market is overvalued and the US market is just even more overvalued?

Or what if the US market is filled with industry leading companies in growth areas like tech while Canada insists on an economy built on extracting natural resources, and banking and insurance (two industries intent on adding no value)? Well then should it be no surprise then that the US market is outperforming???

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