Investing

[Merged] Another bloody red day on the TSX

  • Last Updated:
  • Aug 11th, 2017 10:43 pm
Sr. Member
Nov 28, 2010
815 posts
98 upvotes
Brampton
jerryhung wrote:
Aug 11th, 2017 11:20 am
Can I revive this thread? ha ha, maybe OP can change title to "Another bloody RED YEAR on the TSX)

TSX has been horrible in 2017 "relatively", or in the last decade I think? Obviuosly energy, resources, and now even financials are underperforming. Relative to our RE or crude spot prices
https://www.google.ca/finance?q=INDEXTSI%3AOSPTX

YTD -1.8% vs. SP500 +10%
5yr +26% vs +75%
10yr 11% vs 70%
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
Deal Addict
User avatar
Dec 8, 2010
1939 posts
602 upvotes
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
Sounds like selling low, buying high to me ;)

Time to buy more Canada.
Member
Dec 23, 2008
316 posts
42 upvotes
Toronto
YTD -1.8% vs. SP500 +10%

Wow, i'm somewhat surprised to see the huge gap between the two markets.
Deal Expert
User avatar
Sep 19, 2004
19797 posts
2932 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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Deal Addict
Dec 6, 2006
3553 posts
608 upvotes
Toronto
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
574 posts
131 upvotes
Edmonton, AB
I hope it keeps going south.
I'm loving it.
Smiling Face With Open Mouth
Sr. Member
Oct 21, 2014
575 posts
334 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
Sr. Member
Nov 28, 2010
815 posts
98 upvotes
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
Sr. Member
Dec 3, 2014
845 posts
135 upvotes
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.
Sr. Member
Jan 20, 2016
873 posts
238 upvotes
Burlington, ON
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.
Sr. Member
Jan 14, 2009
775 posts
245 upvotes
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
33 posts
2 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.
Deal Expert
User avatar
Sep 19, 2004
19797 posts
2932 upvotes
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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Sr. Member
Jan 14, 2009
775 posts
245 upvotes
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.

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