- the source for market opinions


November 18, 2017 | Tesla Delivers World Changing Semi Truck (and new Roadster)

While haters hate, helpers help and Tesla keeps leading the world to a future of clean, safer transport, fueled with solar powered en route chargers. Elon Musk unveiled Tesla’s new Semi truck and (in a surprise) a second-generation Roadster. The truck is supposed to get 500 miles per charge, while the Roadster is said to […]

November 17, 2017 | Canadians Paying Dearly for Their Housing

Another housing study has come to familiar conclusions:  Canada boasts the least affordable housing in North America.  With a median family income of just under $65,000 a year, it would take 7.5 years for a family to pay off the median priced home valued at 485K.  That’s if they were able to live on air and direct […]

November 16, 2017 | Moody’s: Negative Outlook for Largest Ever $1.1 Trillion Auto Loan Market

“Signs are there that we might be approaching an inflection point in the marketplace for autos,” William Black, managing director at Moody’s, said in  on Tuesday.  No credit expansion lasts forever. Moody’s is also forecasting a drop in used-car prices thanks to pressure from a record number of off-lease supply. When it comes to auto […]

November 15, 2017 | Investment Marketing Wrappers and the Rot Within

Exchange Traded Funds (ETFs), mutual funds or indices are only a marketing wrapper or package around a group of individual securities. Reassuring names aside, their investment prospects can only be as good as the individual constituents within– defined by their market price versus earnings, sales, assets, cash flow and future prospects–and the macro cycles at […]

November 14, 2017 | Debt-Fueled-Consumption-Supercycle in Retreat: “We’ve Wasted Our Gravy Train”

In 1880, Melbourne Australia was the richest city in the world, until it had a property crash in 1891, halving home prices and launching the nation into an economic depression that was longer and deeper than the Great Depression of the 1930’s.  According to Macro Business, it took 70 years for the housing market to […]

November 13, 2017 | End Running Trust-Abusing Financial Intermediaries

We have been quietly reading and watching the evolution of blockchain since the introduction of its first application Bitcoin, in 2008.  It is a complex, new world paradigm, where one is well advised to study, process and think before making conclusions or taking any action. Among a growing body of legitimate developers and end users in […]

November 12, 2017 | The Elite Sport of Tax Evasion

“Tax havens are one of the key engines of the rise in global inequality. As inequality rises, offshore tax evasion is becoming an elite sport.”— economist Gabriel Zucman, Nov 8, 2017.  See:  The desperate inequality behind global tax dodging A massive leak of more than 13m files reveals the hidden wealth of some of the world’s […]

November 11, 2017 | Perspective Graphic: How Much Money Have Humans Created?

Ever wonder how much money exists? This video compares the world’s richest people, the biggest companies, physical currency, the gold market, the stock market, global debt, and other things to give you a sense of the size of how much money actually exists. Links: The Money Project has tons of infographics and data visualizations, and […]

November 10, 2017 | Retraining Fossil Fuel Workers for Renewable Energy Jobs

Many of the skills integral to the fossil fuel industry are directly transferable to the renewables sector. Installing solar panels requires electricians, building wind turbines relies on welders and locating and maintaining geothermal wells depends on drilling engineers.  Recent surveys find that many workers see and want the transition to sustainable jobs, even if it […]

November 9, 2017 | Fraud Alert: CRA Arrears Scam

Last year we had people leaving threatening messages on our home phone saying they were from Canada Revenue Agency and that if we didn’t pay up they would send the police to arrest us. I was amazed at the brazen aggression of their fraudulent efforts. We reported the calls to the police and CRA. Both […]

November 8, 2017 | Predatory Finance Still Menacing the Global Economy

When people attack and dismiss 14-year-old-world-change agent-Tesla for benefiting from relatively small tax subsidies and EV incentives in some countries, I am struck by the agony and hypocrisy of a world where the oldest, richest and most profitable sectors–big oil and big finance–continue to receive unprecedented government support and largess that is literally bankrupting nations.  […]

November 7, 2017 | When Canadian Homeowners Walk Away From Negative Equity, Taxpayers at Risk

As Canadian household debt hit an all time high in 2017 (see chart), a new study by TD Bank finds that 97% of Canadian homebuyers say they wish they’d factored in their other financial obligations when determining the mortgage they could afford. (Too bad their mortgage broker/architect/advisor was not required to factor these ‘obligations’ into their loan approval […]

November 6, 2017 | Yield Spreads Warning: Life Savings at Risk

North American yield curves are narrowing further today, now with less than .5% between the 10 and 2 year Treasury yield in Canada, and less than .70% in the US. Both are now at the narrowest spread since the last market cycle peak in 2007. Here is my partner Cory Venable’s update chart showing the […]

November 4, 2017 | 60 Minutes Australia: Solving Australia’s Electricity Crisis

More than ever before, Australians are struggling to pay for their power.  In a country of vast natural resources the strife is surprising, and innovative solutions readily at hand. Australian faces huge challenges in the future to provide cheap and reliable electricity into the grid. Tesla founder and CEO Elon Musk is building the world’s […]

November 3, 2017 | “Unexpected” Price Declines Hitting Highly Levered Buyers

A realtor friend was telling me this morning, that they attended an industry conference yesterday where the speakers were explaining why tighter mortgage rules in January (that are set to reduce buying power by about 20%), are unlikely to hurt sales or prices. Hmmmm.  Of course, price declines are always ‘unexpected’ in markets populated by […]

November 2, 2017 | PetroChina: Foreshadowing the Saudi Aramco IPO?

In typical initial public offering (IPO) marketing frenzy, PetroChina was sold to investors at the peak of the 2007 commodity cycle for a record $1 trillion.  Since then the shares have lost 80% of their market value and counting.  Here is the chart. The many good reasons for the price decline include:   hype and […]

November 1, 2017 | Canadian Realty Prices Face Secular Headwinds

Realty prices in Ontario, dropped sharply in September.  In the Greater Toronto Area (GTA) 1 hour north of the city (where I live), average prices have already come off about 20%+ from last spring.  And while the stricter mortgage rules announced for January will doubtless prompt some to try and squeeze into properties before Christmas, […]

October 31, 2017 | The Real Math of Equity Allocations

Secular bears are born from extended periods of indiscriminate buying and speculation that drive prices paid for securities to irrational multiples of real world items like revenues, cyclically adjusted earnings, tangible assets and wages. And then they mean revert. Bulls say buying and holding at any price is smart investing, because ‘over the long-run’ market […]

October 30, 2017 | Canada in for a Rough Patch Even if Rates Stay Low for a Long Time

The Loonie is tumbling and Canadian bonds rallying as the Bank of Canada backs away from its rate hiking plans in ‘surprise’ over the slowing Canadian economy. Meanwhile a new report from the National Energy Board brings good news for the planet (that is bad for Canadian GDP in the short and medium run). See: Canada’s […]

October 28, 2017 | A+: Tesla Re-Powers Children’s Hospital in Puerto Rico

Actually Donny, this what an A+ aid effort looks like… A children’s hospital in Puerto Rico that was forced to run off generators and ration diesel fuel in the wake of Hurricane Maria now has a solar power system that will supply all of its electricity needs. See:  Tesla turns power back on at Children’s Hospital […]

October 27, 2017 | Do It For You: Electric Vehicles Are Cheaper

The purchase price for electric cars is coming down.  In 2017, the average electric car transaction price fell by 11% from 2016. But that is only part of the math:  less parts, repair and maintenance as well as lower fuel costs, mean that EV’s are already cheaper to own than a conventional ICE vehicle.  And the EV […]

October 26, 2017 | New Zealand to Ban Non-Residents from Buying Homes. Canada Next?

New Zealand’s newly elected government is launching an attack against foreign home ownership. In an effort to tackle soaring property prices, the country of 4.7-million people will pass a law that seriously restricts foreigners from buying property. The plan, as outlined by prime minister-elect Jacinda Ardern, will ban non-residents from purchasing existing homes in the […]

October 25, 2017 | Americans Too: IMF Warns Record US Household Debt is ‘Economic Trap’

The International Monetary Fund devotes two chapters of its latest Global Financial Stability Report to the issue of household debt and points out: high household debt levels deepen and prolong economic recessions. US household debt is back at pre-Great recession levels hitting $12.84 trillion in the second quarter of 2017.The report offers this flowchart of the loops […]

October 24, 2017 | Canada Unprepared for the Payback Period

The thing about economic expansions is that people are supposed to work, pay down debt and build up savings, so that they can ride out the economic downturn that follows. Canadians have done the opposite over the past 8 years, and now approach 2018 with the highest debt and lowest cash savings in decades.  A […]

October 23, 2017 | Taleb: ‘Greenspan Thought he had a Magic Wand’ Now we have the Moral Hazard

Taleb offers some good first-hand historical perspective in this discussion, also some key points to understanding the genesis of our current free market-free mess. The Black Monday crash was 30 years ago this week. “Black Swan” author Nassim Taleb was a trader for First Boston at the time. He made a lot of money while […]

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