Personal Finance

Nothing to invest right now...

  • Last Updated:
  • Jun 26th, 2013 9:11 pm
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Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes

Nothing to invest right now...

Seems like we're in a rut. Real Estate isn't going to do much in the next few years. Commodities are crashing and likely continue to do so. Stocks will remain volatile for the good part of the year. If yields continue to go up, stocks will stay flat. Looks like bonds have finally topped and ready for a long term correction. Cash in savings accounts pay peanuts.

Man what to do...
9 replies
Deal Addict
User avatar
Nov 12, 2011
4508 posts
700 upvotes
Niagara-on-the-Lake
Sanyo wrote: Seems like we're in a rut. Real Estate isn't going to do much in the next few years. Commodities are crashing and likely continue to do so. Stocks will remain volatile for the good part of the year. If yields continue to go up, stocks will stay flat. Looks like bonds have finally topped and ready for a long term correction. Cash in savings accounts pay peanuts.

Man what to do...
Time to hit the bookies. Go big or go home!
Deal Fanatic
Apr 16, 2007
8134 posts
3485 upvotes
Financial District B…
Just do what the majority are doing here on RFD. Pawn and day trade coins so you can further label yourself an investor and trader.
Banned
User avatar
Feb 15, 2008
26318 posts
3242 upvotes
Calgary
Sanyo wrote: Seems like we're in a rut. Real Estate isn't going to do much in the next few years. Commodities are crashing and likely continue to do so. Stocks will remain volatile for the good part of the year. If yields continue to go up, stocks will stay flat. Looks like bonds have finally topped and ready for a long term correction. Cash in savings accounts pay peanuts.
Lots of stuff to buy, especially in Canada. Look for companies with lots of long-term debt on their balance sheet (devalued by higher interest rates). Look for companies that hold long-term assets that trade under book value. Look at the Canadian banks that benefit from the higher rates and the steepening yield curve.

The Canadian stock market is chock full of these things. They haven't performed very well in the past few years because interest rates have been hammered down, but now that long-term interest rates are going up, Canada should perform better.
TodayHello wrote: ...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
Deal Addict
User avatar
Jan 14, 2012
1457 posts
685 upvotes
Woodbridge
lol are you serious, I almost wish I had more cash for all the things to buy
Sr. Member
Sep 9, 2012
623 posts
156 upvotes
Edmonton
I think there is money to be made in preferred and reits. The recent sell-off has made them a good value imo.
Deal Addict
Oct 4, 2009
3590 posts
2953 upvotes
Montreal
Title is missing the word "in" after "invest" to properly convey the OP's view. The way it is now makes it sound like he's got no spare cash to buy.
imkinger wrote: I think there is money to be made in preferred and reits. The recent sell-off has made them a good value imo.
If rates go up, even gradually, at the pace most economists expect, it will get ugly for most issues in those two categories. IMO Canadian REITs are still very expensive. Pockets of prefs can be interesting if you pick your spots, I would not touch the ETFs or funds. As a whole the sector is unlikely to do well in the coming years.
Sr. Member
Sep 9, 2012
623 posts
156 upvotes
Edmonton
S5 wrote: Title is missing the word "in" after "invest" to properly convey the OP's view. The way it is now makes it sound like he's got no spare cash to buy.



If rates go up, even gradually, at the pace most economists expect, it will get ugly for most issues in those two categories. IMO Canadian REITs are still very expensive. Pockets of prefs can be interesting if you pick your spots, I would not touch the ETFs or funds. As a whole the sector is unlikely to do well in the coming years.
I'm talking more about yield than capital appreciation. Sure, when rates start to rise both sectors will fall in terms of capital, but the yields will hold. I believe that rates will go up VERY slowly, so the yields will still be attractive, which should also counter some of the sell off.
Deal Addict
Oct 4, 2009
3590 posts
2953 upvotes
Montreal
imkinger wrote: I'm talking more about yield than capital appreciation. Sure, when rates start to rise both sectors will fall in terms of capital, but the yields will hold. I believe that rates will go up VERY slowly, so the yields will still be attractive, which should also counter some of the sell off.
Losing money at a reduced rate is a far cry from your previous statement.
imkinger wrote: I think there is money to be made in preferred and reits. The recent sell-off has made them a good value imo.
IMO these and other interest sensitive areas(see yield chasers) have a long way to go before offering good value.

I did buy some prefs this week but they all have short durations with hard maturities and got caught in the panic. Far different issues than the perps and low rate resets that dominate the indeces.

Anyways, takes different opinions to make a market.

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