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Showing posts from 2012

Corporate Welfare and the Makers of Kings

Lets start by me saying, I am no left-wing business-hating nut-case, I have been self-employed my whole life and never have taken an Unemployment cheque or even voted NDP. I am pro-business, but what I am taking about here is not business.  These firms are winning by having unfair political access and that's all the value/benefit they add. 
Any young person in this country can grow up to be a powerful MLA or even the Prime Minister. This is not a land where you must be from the right family or even go to the right schools to be a leader in this country. However if you want to be elected in Canada you must do one thing that is very unsavory -- you must sell your soul to one of the big Canadian Welfare Backed firms that have a financial strangle hold on every citizens life in this country. These are the firms that will give you the dollars to get your campaign advertising it needs. No bucks  -- no trip to Ottawa. But of course like the Mob, one day they will come calling to get a fav…

Seven Wonders of CBC Decision Making

You gotta love this, in semi-socialist Canada we have a government run TV network – the CBC. Think PBS with poor content and a way bigger budget. They decided to run a contest to select the “7 Wonders of Canada”. The results are typical of what a CBC committee would do and it shows why crown corporations have no business competing in the entertainment business. Here is the web page:
Talk about the Seven Wonders of CBC decision making: Can you believe that through the power of politically correct committee-think -- a canoe and an igloo are "wonders" in Canada -- but the CN Tower, Cathedral Grove and the Bay of Fundy are not? A wonder is a place you can visit and feel awed by; what tourist would travel to Canada to see a canoe? I assure you I did not go to Egypt to see a felucca, I wanted to see Pyramids that touch the sky. The CBC decision-making process is typical of New Age thinking, where the overriding concern seems to be no…

Canadian Super Recession?

June 28 2012 -- Canadians so far have slipped by the global slow down and the economy has remained robust. Canadian dollars are considered a bit of a safe haven and Canada brags to the world about out lowering of government debt before it was popular or necessary along with a continued boom in commodities. But before we get too smug, we should look at some very troubling signs on the horizon:

The graph below shows the 5 year price of commodities:

The economist pointed out that in some ways Canada has the highest real estate prices in the world -- that can’t stay out of balance long. We laughed at America's boom bust market but it is happening here too.The Toronto Stock Exchange is a proxy for China and China is not doing well    . It is even obvious in the USA that Canada would be the worst hit in China mealtdown  The TSX is increasingly a “banana republic” stock exchange with some 25% of stock related to oil and 20% in mini…

After the Gold Rush.

June 2012 -- I first wrote on this subject back at the end of 2010. At the time I knew I was right, but often you can see the market through a telescope, and react too soon, and that was certainly my concern back then. Gold was overvalued but the famous axiom says that markets can stay irrational longer than you can remain solvent.
However I believe the turn is here and it is real. My new concern is based on this graph of weekly prices. Here are the 10 and 50-week EMA lines for GLD. For the first time in 11 years (not counting the sub-prime crises) there has been a serious crossing of the lines.
I have included a graph of Gold vs the stock market (gold is on the bottom) but you don’t need a graph to know the price is way too high already.
The gold market works much like any other, with supply and demand eventually equalizing, and runaway prices returning to long-term averages. Since 1980, the price of gold has averaged about $440 an ounce in U.S. dollars. But much like U.S. home pr…

Where can Canadians find a broker

As for brokers for Canadians, the most honest and stable brokers in the world are the Canadian major banks
TD waterhouse (better platform than the two below)
BMO investorline (well run good service)
Scotia iTrade  (cheep – limited abaility)

However that said, Canadian brokers are not great for day trading, they don’t do futures, very limited ability to short stocks or buy US options and no real currency trading.
Some safe US brokers do take Canadian accounts:
If you want to trade Options and Futures with a very small account look into "TD Think or Swim" also I love the interface, what great charts and analytics. ToS option decay graphs are the best in the world, they can track Theta burn better than you can on a Bloomberg terminal. If you have a major account and trade size frequently like I do, you can use Interactive Bro…