Random Thoughts

The Bank of Canada threw us all a knuckleball this week when they announced a quarter point drop of their key overnight rate (on Wednesday). The rate is now at 3/4%, dropping a 1/4, and it seems the Bank assumes the economy needs even more stimulus.

The telling statement from their announcement is the final paragraph of their statement:

The oil price shock increases both downside risks to the inflation profile and financial stability risks. The Bank’s policy action is intended to provide insurance against these risks, support the sectoral adjustment needed to strengthen investment and growth, and bring the Canadian economy back to full capacity and inflation to target within the projection horizon.

This suggests that the very commodity-reliant, Canadian economy is going to take a hoof in the “lower abdomen” thanks to plummeting oil prices. Lower inflation, but higher unemployment seems to be on the event horizon.

The Canadian dollar continues to plummet, thanks to very low oil prices, which may slow down the cross-border shopping insanity that has been going on for a while. Maybe we shall see more of our American family dropping by in Canada this summer? Is this lower interest rate simply going to accelerate the drop of the Dollar’s value? Some experts feel this is going to cause a Canadian dollar back around the 70 cent level (compared to the US dollar), we shall see whether that comes to pass.

My Writings for Week Ending January 23rd

The cold of Ottawa in January constantly begs the question, why do we live here?

• I had another run at some of the Best Financial Tweets of the week. I thought I wasn’t going to be able to find many, but the real problem is, there are too many, and my Twitter feed is too large (I miss far too much).
• I did finally get my money out of the TD RESP account for my daughter, but it took longer than I wanted and I highlight the issues I created by trying to use lower MER Mutual funds with TD E-series RESP Bear Trap.
• How do you eat an elephant ? Here is an idea, don’t order the frigging elephant!!
• RESPs are too hard for Mommies? My regular readers could spot the Swerve title, but I am just not too sure why I have seen so much mainstream media (TV) pushing this Giraffe & Friends RESP thing, and yes, Mrs. C8j was really quite insulted by the pitch.
• Canadian Economy on the Edge, Frigid Temps and #BestThisWeek

Read More »Looser Money, Plummeting Loons and #BestThisWeek

They year 2014 ended with a wimper, but there were plenty of interesting articles written and read for year MMXIV.

Interesting to see that the U.S. will try to normalize relations with Cuba after 50 years. This will mean for Canadians that Cuba will not be quite as cheap as it has been, and worse it will be a lot busier. Should be interesting to see if this turns into a political hot potato for Democrats during the next elections, as the Republicans are already calling it the worst mistake since Chamberlain appeased Hitler in 1939. I am sure the Cuban economy will enjoy the eventual influx of Yankee tourists.

The Russian ruble is dropping in value like a stone, thanks to many factors, but the EU and American sanctions cannot be helping things out, that, and the fact that Oil Prices are ludicrously low. Interesting to see how this all shakes out, and whether this disables or slows down the Electric Car industry ( I hope not, I think Electric cars are the right way to go) and other alternate energy businesses.

Sad to see my alma mater having a cheating scandal during final exams, does seem like a very odd story.

Christmas is next week, a time for folks to get together with friends and family and enjoy the Festival that typically starts the Christian Church’s year. For those who don’t attend Church, enjoy the time with your loved ones or someone you love, don’t worry about the presents, or the rest, it is all about family and friends.

Come on by, there will be some new content, and maybe some old favourites will return as well.

My Writings for Week Ending December 19th

Christmas is practically here, what are you doing to be Christmassy this year :

• Having problems with your resolutions, here is a novel idea  Financial New Year Resolution, Start Now! That way you can fail that much earlier, no wait, that isn’t what I wrote (was it?).
• I do miss John Houseman’s authoritative tones on TV, but with Make Money the Old Fashioned Way, Earn it, I wondered does anyone really earn their pay in the investment world?
• Do you want to know my sure-fire investing scheme? Boy you are gullible, when do you think I’d tell anyone if I figured out how to make a fortune (unless it was to get everyone to send me money, on how to make a fortune).

Read More »Cuba, Rubles, Christmas and #BestThisWeek

Christmas and snow are two words that appear in Ottawa every year in December.

A true gentleman passed away this week, and I was saddened with the passing of Jean Beliveau. To me he was the epitome of a leader, and his demeanor on and off the ice was to be admired. My favorite Jean Beliveau story was when as a young lad, telling my Dad I’d play better hockey if I had a stick with a curved blade, and my Father’s response summed  it all up nicely, “If Jean Beliveau can play with a straight blade, you can too”. Let’s hope Mr. Beliveau’s blade continues to be straight, wherever he plays.

I was privileged to be invited along with my son to National Defense HQ for an International Day of Persons with Disabilities festival. My son’s soccer Club the Just for Kicks group with the Nepean City Soccer Club, was invited to show off their skills and play against some very high-powered talent. The Generals involved were very good sports and I also met the head of Soldier On a support organization for wounded soldiers.

The malls are now crammed with folks trying to find the next “perfect” toy, but remember the reason you are out there. I will no doubt be in the middle of the bloody fray this weekend, so stay the heck out of my way, if you don’t want to see what I learned playing rugby.

Oh and congrats to Wales for defeating the Mighty South Africa Springboks last weekend (for only the second time in 100 years).

My Writings for Week Ending December 5th 2014

Christmas lights twinkle and even I have got out the inflatable Christmas Penguin for the front of the Big C8j Hacienda :

• To get all Christmassy I decided to go cheesy with It’s A Wonderful Life (financially?) where I pointed out that Index Funds and It’s a Wonderful Life have a little bit in common, read to find out what.
• I went rummaging into my archives of articles that I had started but hadn’t finished and came up with  5 Ways to Optimally Use Your Pay Raise , some interesting comments to this one as well.
• In the dark archives when I was laid off from Nortel I found the following interesting story about Are You Giving me a Questionnaire about How I liked my Lay Off ? It really was!

Read More »A Gentleman, Day of Disability, Christmas, Rugby and #BestThisWeek