Everyone seems to cheer these latest inventions of the government. I am a little less enthusiastic. I don't see the point? I have $5000 that i put into a savings account getting me what 3%? So the tax savings for me is .54 of $150 or about $90/yr. Not exactly life changing for even low income earners who can't find $500 to save much less $5000.
I am thinking of the alternative and going for broke. The flip side to this is that my losses are no longer claimable. I still think the advantages far out way the non deductability. So my TFSA will be put into options, small caps and anything else that looks like it might double or beyond. Of course the opposite may be true, but unless that account really grows its better for me to put money into RRSP's. I can take the refund and pay down non deductible debt.
One bright idea i am looking at is Suntech or STP-N. Numbers look good, but will sales dip drastically during this downturn?
D
Friday, January 23, 2009
shorting
Hmm,
where do i begin. First Tesoro. Whoops. I tried to buy the actual shares when it hit just under $7. Yes tried as i forgot my trading password. Hmmm maybe that whole trading less strategy wasn't such a good idea after all? Well needless to say i have watched TSO and Energold among others go up steadily since i 'couldn't sign in'.
Now armed with my password and some more picks things are looking good. BVF has steadily marched up. I am deciding when to trim some holdings and will wait till after the Feb quarterly report. CLCT is also showings signs of life. Sadly Canwest should be taken out back and shot. I have decided the pittance $200 i have left in it will just stay there for now.
I was reading some silly replies on google finance comments. Some people are so childish. However it got me thinking. In this silly market why not try shorting your favourite failing financial institution and then buying calls in case it decides to stop writing off billions? Have yet to calculate this, but i suspect that the VIX will mean the calls are too rich and the spread to great for this idea.
With all banks doing so badly how soon before we have only government banks? The money being thrown at these companies makes me think of the 'no child left behind' Bush passed. This one could be reworded 'No shitty bank or borrower left behind'.
Many headlines are talking of massive deflation right now which is hard to argue with. Some reputable sources are pointing to inflation not to far off since we are flooding the system with money everywhere. My question is why? If all the banks fail out with that money and the assets are worth little then none of this money will get into the economy for a long time.
The Japan scenario seems to be closest for the US. It can't take more debt to fix the problem, but rather deflation. How much is any ones guess, but it must happen or the next bubble will just be bigger.
Enough ranting. SWIR looks to be trading cheaply. I see they bought another company. More work will need to be done on Sedar/Edgar before i throw good money after bad (i am all pro at this).
I am in the middle of 3 books right now. Literally i have reached the midway point on Common stocks uncommon profits, Snowball, and Unconventional Success. I also received The Contrarians 13 and its sitting on my dresser under the pile. My wife says i need to get a life.
I however quite like my life, but more balance might be a good thing. My 3 year old and I have been skating a few times. I hope he's like me so we can talk cause my wife sure doesn't.
If i was a betting man i might guess that picking railways, such as BNI, isn't such a bad way to go. Also a friend told me Sangold, if it delivers on promises, will be rolling in the money if gold prices stay up. If it hits 200,000 oz year production at a cash cost of $400 us it will indeed be flushed with dough. Time will tell.
On a good note my mortgage, which is my only outstanding debt, is now 2.25%. I suspect i will be below 2% before 2010. I just keep bumping up the payments slightly every time rates fall so that my remaining balance will be smaller when rates start rising (and they will eventually).
Did i mention i love google reader? Its fantastic. All my favourite blogs (the list is growing almost weekly) are now separate from my email. I can quickly scan headlines and find all my favourites in one neat area.
I will finish by saying my lists are growing daily. I need to pare down the lesser names so i can 'see' movements in my companies of choice. I continue to litter my lists with the RBS and Oilexco's more out of interest sake than investment. I continue to look for the Akita's that are making money, no debt and should make money in the future. Very few including Akita, as the drilling sector will suffer, meet the requirements.
One new idea is STP. I guess with oil under $40 time will tell if the environment importance fades like the commodities prices?
D
where do i begin. First Tesoro. Whoops. I tried to buy the actual shares when it hit just under $7. Yes tried as i forgot my trading password. Hmmm maybe that whole trading less strategy wasn't such a good idea after all? Well needless to say i have watched TSO and Energold among others go up steadily since i 'couldn't sign in'.
Now armed with my password and some more picks things are looking good. BVF has steadily marched up. I am deciding when to trim some holdings and will wait till after the Feb quarterly report. CLCT is also showings signs of life. Sadly Canwest should be taken out back and shot. I have decided the pittance $200 i have left in it will just stay there for now.
I was reading some silly replies on google finance comments. Some people are so childish. However it got me thinking. In this silly market why not try shorting your favourite failing financial institution and then buying calls in case it decides to stop writing off billions? Have yet to calculate this, but i suspect that the VIX will mean the calls are too rich and the spread to great for this idea.
With all banks doing so badly how soon before we have only government banks? The money being thrown at these companies makes me think of the 'no child left behind' Bush passed. This one could be reworded 'No shitty bank or borrower left behind'.
Many headlines are talking of massive deflation right now which is hard to argue with. Some reputable sources are pointing to inflation not to far off since we are flooding the system with money everywhere. My question is why? If all the banks fail out with that money and the assets are worth little then none of this money will get into the economy for a long time.
The Japan scenario seems to be closest for the US. It can't take more debt to fix the problem, but rather deflation. How much is any ones guess, but it must happen or the next bubble will just be bigger.
Enough ranting. SWIR looks to be trading cheaply. I see they bought another company. More work will need to be done on Sedar/Edgar before i throw good money after bad (i am all pro at this).
I am in the middle of 3 books right now. Literally i have reached the midway point on Common stocks uncommon profits, Snowball, and Unconventional Success. I also received The Contrarians 13 and its sitting on my dresser under the pile. My wife says i need to get a life.
I however quite like my life, but more balance might be a good thing. My 3 year old and I have been skating a few times. I hope he's like me so we can talk cause my wife sure doesn't.
If i was a betting man i might guess that picking railways, such as BNI, isn't such a bad way to go. Also a friend told me Sangold, if it delivers on promises, will be rolling in the money if gold prices stay up. If it hits 200,000 oz year production at a cash cost of $400 us it will indeed be flushed with dough. Time will tell.
On a good note my mortgage, which is my only outstanding debt, is now 2.25%. I suspect i will be below 2% before 2010. I just keep bumping up the payments slightly every time rates fall so that my remaining balance will be smaller when rates start rising (and they will eventually).
Did i mention i love google reader? Its fantastic. All my favourite blogs (the list is growing almost weekly) are now separate from my email. I can quickly scan headlines and find all my favourites in one neat area.
I will finish by saying my lists are growing daily. I need to pare down the lesser names so i can 'see' movements in my companies of choice. I continue to litter my lists with the RBS and Oilexco's more out of interest sake than investment. I continue to look for the Akita's that are making money, no debt and should make money in the future. Very few including Akita, as the drilling sector will suffer, meet the requirements.
One new idea is STP. I guess with oil under $40 time will tell if the environment importance fades like the commodities prices?
D
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