American Economics Thread

Gatekeeper

Brigadier
Registered Member
Our National Super Fund has divested alot of their holdings in the Oil Companies at the behest of the Green Party and national sentiment. The policy is to now invest in clean industries.
Having divested their holdings in Oil companies at a high, I reckon they could make a killing through buying oil shares again. But they wont.

Actually Nders are adverse to the share market
No amount of cajoling will see too many mum and pops play the share market. They rather invest in real estate as their are no capital gain taxes.

If you make s million in a year it's all yours . If you made the same in shares you could loose up to 33% of it in taxes. So what would you do.

Now, I think you are talking about Canada with regarding capital tax. So I'm not familiar with the Canadian tax system.

Here in the UK, Capital gains tax is payable on all gains including real estate, except for the home you are living in!

I'm sure (without checking) Canada would have somerhing similar, otherwise, 1/ government missed opportunity for revenue. 2/ this would lead to uncontrol real estate market at the expense of capital market.
 

broadsword

Brigadier
Now, I think you are talking about Canada with regarding capital tax. So I'm not familiar with the Canadian tax system.

Here in the UK, Capital gains tax is payable on all gains including real estate, except for the home you are living in!

I'm sure (without checking) Canada would have somerhing similar, otherwise, 1/ government missed opportunity for revenue. 2/ this would lead to uncontrol real estate market at the expense of capital market.

B.B. is from New Zealand.
 

Gatekeeper

Brigadier
Registered Member
Agree. Bottom in North America will happen in 3-4 weeks.

When I was a trustee of our companies pension fund. We went to a conference of our investors, Mellon bank (before they merged). The CEO said, "We have a policy in our company, when the retailers (meaning Jo public) get in (buying or selling), it's time to get out"!

If I'm not to learn anything for the rest of my life, I'll remember that for the rest of my life. That's one valuable piece of advise!
 

Gatekeeper

Brigadier
Registered Member
I


I bought Fujifilm yesterday, but they are down again.

Get some telecommunications stock.

My entire portfolio is down 20%, it would be 40% if not for all the healthcare ETFs I have surging like crazy.

Lol, stocks and shares are not for the faint hearted! That's another piece of advise I received!
 

Gatekeeper

Brigadier
Registered Member
OMG you are publicly gambling? Nice times to do i agree :p Moderators?

Gambling! You are not far from the truth! The only thing is, the bankers and institution investors (not Joe Public) are gambling with our money and not theres. They will make a killing either way.

I give you an example, when, in my role as Trustees, I was a bit miffed that we have to pay our institution investors the investment fees and BONUS! (no small sum by any mean). And after we lost a sizable chunk of our investment!

I question this. This was back in 2009 just after the financial crash. The answer was the fees we got to pay, because it's part of the service (for loosing money?).

Ok, I accepted that, but why the bonus? Well, comes the reply, without breaking breath, it's because we did not loose as much money as the market did! and the contract state, we are entitled to a bonus if we "out-performed" the market! And we did that!
 

Gatekeeper

Brigadier
Registered Member
So much for 244 years old "the invincible hands" hoax.
Indeed, free market my foot.

I think typo, lol. You mean "invisible" and not "invincible" just for those members not familiar with economics. (not picking on typo per se, as I'm equally as bad, it is for clarification).

Yes, my Tutor always says, there's no such thing as a "totally free market". As soon as you got laws, and government to enforced those laws, free market ceased to exist!
 

PiSigma

"the engineer"
Not sure where you are comin from. It looks like you are analysing from a fundamental point of view. If so, have we look at the debts side of the equation. Almost all of these companies will find their debt ratio increased, which could spelt trouble further down the line.

The only salvation for oil companies is that their products are price inelastic, thats to say if prices increase, demand would not fall proportion to the increase. And unless the world stop spinning, we expect the oil companies to survive this crisis, either through their own effort, or via government intervention. As such, their value would return some day, so therefore one can make a killing now by buying at a cheap price, and if one can wait it out.
Husky is practically privately owned by Li Kai Shing. Imperial and Suncor have fairly low debt. I considered it.
 
I posted at the Coronavirus thread, but not saw it is 4 senators. So post here as well.
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4 U.S. senators sold stock after getting coronavirus threat briefings in January
The moves spark concerns that they put safeguarding their private finances before their duty to protect public health.
  • BY
  • DAVID KOCIENIEWSKI AND BLOOMBERG
March 20, 2020 4:54 AM EDT

Isn't this insider trading or it does not apply anymore in the Trump era? Is the stock market still safe place for investment?
 

Gatekeeper

Brigadier
Registered Member
Isn't this insider trading or it does not apply anymore in the Trump era? Is the stock market still safe place for investment?

In a word. YES!

BUT try proofing it! Many cases in the past have collapse due to "lack of proof". In the UK, a politician named Jeffrey Archer was a great example.

And currently, reading from the article, the senators excuse is that all the decision for trading (buying and selling) rest with their agents. And they have no role in that!

Now, we are adults here, and some of us have been round the block a few times, and seen everthing in life. And if you believe the above is plausible, then that's fine. On the other hand, like me, who thinks a wink here, a wink there happens, then presto. You have your insider trading.

But how do you prove a wink here and a wink there, for obvious reasons it is not documented anywhere, surprise surprise!

Secondly, I wouldn't blame Trump, you maybe surprise to here. The issues is before Trump, and it'll continues after Trump.

And finally, the stock market was and never have been fair to the small investors. Becuse you are always at a disadvantaged to those with more "inside" information!
 
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