Financial Markets Meltdown

[Trochu]

Originally Posted by Dean2

....why Charlie Munger, Warren Buffet, Elon Musk, and the CEOs of every North American bank, not to mention all the other folks that get paid multiple millions a year are still working.

[anchorman]

Long time lurker in this thread, made joining this forum more than worth it. Thanks especially to Dean2, but others as well for sound advice. Wish I knew this stuff 10 years ago. Working on diversifying my portfolio, as I'm well below the threshold of interest for good investing management ha ha.

Happy new year!

[Dean2]

This showed up on the BNN feed today.

https://www.bnnbloomberg.ca/4-ways-t...ment-1.2018184

Nearly half of Canadians who invest through advisors are shopping for new talent.

According to the 2023 Ernst and Young Global Wealth Research Report, 45 per cent of surveyed people said they were looking for better portfolio managers – a 24 per cent increase since 2021.

The waning confidence in professional management is likely linked to how well advisors navigated the market turmoil caused by the pandemic. As the lockdowns took hold in 2020, investment firms reported an influx of new clients. A survey commissioned by Manulife Investment Management at the time showed 63 per cent of respondents were looking for an advisor, compared with half in the year before COVID.

If your new year’s resolution is to review your investment advisor, or if you are in the market for one, here are four ways to tell if they are earning their fees.

1. HOW DO YOUR RETURNS COMPARE WITH THE BROADER MARKET

2023 was a good year for the two main asset classes that make up a balanced investment portfolio: stocks and fixed income.

The U.S. stock benchmark S&P 500 advanced by 25 per cent, the Canadian stock benchmark TSX Composite returned over eight per cent, and guaranteed investment certificates (GICs) paid yields as high as five per cent.

Your portfolio should reflect those stellar performances if it is properly diversified among asset classes, major sectors and geographic regions.

Inversely, properly diversified portfolios would likely have shown losses in 2022 when stock markets fell and yields were much lower. It’s long-term gains you are looking for.

If your returns are consistently out of whack with broader markets, ask questions. Lagging portfolio performance might be attributed to specific misunderstandings relating to your risk tolerance or return goals.

2. HOW MUCH OF A BITE ARE FEES TAKING?

A portfolio that consistently underperforms the broad markets could be weighed down by excessive fees.

Professional management costs money. The only way for most Canadians to access professional management and diversification is through mutual funds, which charge an annual fee based on a percentage of the amount invested.

Depending on the fund, those fees can top three per cent, which can shrink a return of five per cent to two per cent.

Returns dwindle further when other fees such as loads and commissions are piled on.

A good advisor knows the best funds for the buck, but should also find ways to minimize fees over time by shifting assets to lower cost exchange traded funds (ETFs) or investing directly in equity markets.

There are other ways advisors are compensated that could cost less, including flat fees.

Fee rates should fall as the portfolio grows and the dollar amount increases. High net worth investors generally strive for total fees under one per cent of the amount invested.

3. IS THERE A STRATEGY FOR KEEPING MORE TAX DOLLARS INVESTED?

Part of an advisor’s job is to ensure your savings are invested in a tax-efficient manner. Keeping more of your tax dollars to compound in your portfolio is a risk free way to boost returns.

If too much money grows in a registered retirement savings plan (RRSP), for example, investments could reach a point where withdrawals will be fully taxed at a high marginal rate. Eventually, minimum withdrawals will be mandatory, putting government benefits like old age security (OAS) in jeopardy.

Before it gets to that point, an advisor should strategically channel savings into tax-efficient vehicles such as RRSPs, tax free savings accounts (TFSAs), income splitting tools like spousal RRSPs and even non registered investment accounts.

4. DOES YOUR ADVISOR EVEN KNOW YOU?

Do you only hear from your advisor when RRSP season rolls along? Portfolio management is a year-long event and regular communication is essential.

Your advisor should be in touch with you by phone or email, or at the very least a regular newsletter explaining any market-moving situation and assuring you your investments are well positioned for what comes next.

In addition, a good advisor should know your retirement goals, tolerance for risk and personal circumstances that impact your finances.

They should also know your big financial picture: debt levels, home equity, workplace pension plans and other major assets and liabilities.

If any of these points ring true, it’s time for a chat – or a change.

[badbrass]

Very well said! and good points to look for! Thanks Dean2!

Originally Posted by Dean2

This showed up on the BNN feed today.

https://www.bnnbloomberg.ca/4-ways-t...ment-1.2018184

Nearly half of Canadians who invest through advisors are shopping for new talent.

According to the 2023 Ernst and Young Global Wealth Research Report, 45 per cent of surveyed people said they were looking for better portfolio managers – a 24 per cent increase since 2021.

The waning confidence in professional management is likely linked to how well advisors navigated the market turmoil caused by the pandemic. As the lockdowns took hold in 2020, investment firms reported an influx of new clients. A survey commissioned by Manulife Investment Management at the time showed 63 per cent of respondents were looking for an advisor, compared with half in the year before COVID.

If your new year’s resolution is to review your investment advisor, or if you are in the market for one, here are four ways to tell if they are earning their fees.

1. HOW DO YOUR RETURNS COMPARE WITH THE BROADER MARKET

2023 was a good year for the two main asset classes that make up a balanced investment portfolio: stocks and fixed income.

The U.S. stock benchmark S&P 500 advanced by 25 per cent, the Canadian stock benchmark TSX Composite returned over eight per cent, and guaranteed investment certificates (GICs) paid yields as high as five per cent.

Your portfolio should reflect those stellar performances if it is properly diversified among asset classes, major sectors and geographic regions.

Inversely, properly diversified portfolios would likely have shown losses in 2022 when stock markets fell and yields were much lower. It’s long-term gains you are looking for.

If your returns are consistently out of whack with broader markets, ask questions. Lagging portfolio performance might be attributed to specific misunderstandings relating to your risk tolerance or return goals.

2. HOW MUCH OF A BITE ARE FEES TAKING?

A portfolio that consistently underperforms the broad markets could be weighed down by excessive fees.

Professional management costs money. The only way for most Canadians to access professional management and diversification is through mutual funds, which charge an annual fee based on a percentage of the amount invested.

Depending on the fund, those fees can top three per cent, which can shrink a return of five per cent to two per cent.

Returns dwindle further when other fees such as loads and commissions are piled on.

A good advisor knows the best funds for the buck, but should also find ways to minimize fees over time by shifting assets to lower cost exchange traded funds (ETFs) or investing directly in equity markets.

There are other ways advisors are compensated that could cost less, including flat fees.

Fee rates should fall as the portfolio grows and the dollar amount increases. High net worth investors generally strive for total fees under one per cent of the amount invested.

3. IS THERE A STRATEGY FOR KEEPING MORE TAX DOLLARS INVESTED?

Part of an advisor’s job is to ensure your savings are invested in a tax-efficient manner. Keeping more of your tax dollars to compound in your portfolio is a risk free way to boost returns.

If too much money grows in a registered retirement savings plan (RRSP), for example, investments could reach a point where withdrawals will be fully taxed at a high marginal rate. Eventually, minimum withdrawals will be mandatory, putting government benefits like old age security (OAS) in jeopardy.

Before it gets to that point, an advisor should strategically channel savings into tax-efficient vehicles such as RRSPs, tax free savings accounts (TFSAs), income splitting tools like spousal RRSPs and even non registered investment accounts.

4. DOES YOUR ADVISOR EVEN KNOW YOU?

Do you only hear from your advisor when RRSP season rolls along? Portfolio management is a year-long event and regular communication is essential.

Your advisor should be in touch with you by phone or email, or at the very least a regular newsletter explaining any market-moving situation and assuring you your investments are well positioned for what comes next.

In addition, a good advisor should know your retirement goals, tolerance for risk and personal circumstances that impact your finances.

They should also know your big financial picture: debt levels, home equity, workplace pension plans and other major assets and liabilities.

If any of these points ring true, it’s time for a chat – or a change.

[KGB]

Originally Posted by Dean2

You know KGB.I have heard this old wives tale for decades. If it is true explain to me why Charlie Munger, Warren Buffet, Elon Musk, and the CEOs of every North American bank, not to mention all the other folks that get paid multiple millions a year are still working. They sure as hell dont need the money. Why aren't they all sitting on yatchs drinking Champagne with your mythical investment gurus?

Hey pal don’t shoot the messenger! I only mentioned what I have heard from a friend. As for your question about Buffet etc- I don’t think they do it for money per se, more likely it’s a hobby, addiction, lifestyle etc- whatever you call it. Same reason why some of us who can retire and live worry free are keep working. And they do enjoy their yachts, trust me- I see it every year while on vacation on SXM.

[Dean2]

TD Bank went ex-dividend today, currently down $3.48, to $83.38. that however is still up more than 12% from its 12 month low in Oct 2023.

Telus and BCE, as well as CU and CPX are all trading near their lows. Higher interest rates have put pressure on their share prices. All pay good to great dividends. If rates come back down, share prices should reflect that.

AQN is trading at severely discounted rates due to bad management and poor board performance. CEO has been fired. Board shakeup likely coming, still pays a good dividend that they can support. I have been keeping an eye on this one, have not added it yet.

Those still holding ZIM, may want to keep and eye on it, has gained back to $14, though it is off some today.

ARM is still beating the IPO trend by a good margin, trading at $71.73.

Royal Bank is at $134, meaning it has gained over 20%, plus dividends, since being $108 Oct 2023.

RY and TD are prime illustrations of what happens if you are out of a stock, or stocks for even a short period when they draft up. All respect to those that can time these, personally I can't.

[KGB]

And Nvidia hit the all time high at $527!

[Dean2]

Originally Posted by KGB

And Nvidia hit the all time high at $527!

I was going to say that, but you seem to enjoy posting those so much i didn’t want to ruin your fun.

[KGB]

Originally Posted by Dean2

I was going to say that, but you seem to enjoy posting those so much i didn’t want to ruin your fun.

That’s because I’m still ****ed that I sold it in $250 range and have been sitting on a side line ever since!

[Dean2]

Originally Posted by KGB

That’s because I’m still ****ed that I sold it in $250 range and have been sitting on a side line ever since!

You did WAY better on it than me. Have never owned a single share, at least you made a couple of hundred a pop. Have missed out on a ton of these guys but still not willing to change my investmemt criteria because of it. Gut feel isn't a sustainable strategy for me.

[MountainTi]

Originally Posted by Dean2

You did WAY better on it than me. Have never owned a single share, at least you made a couple of hundred a pop. Have missed out on a ton of these guys but still not willing to change my investmemt criteria because of it. Gut feel isn't a sustainable strategy for me.

Question Dean. Have my entire TFSA in funds right now and not super happy with the way they are performing. Thinking of moving it over to 7% + dividend paying stocks such as Enbridge, TC et al. In my mind it would be a good choice for a TFSA. Thoughts? Would you take the dividends paid out or just roll them right back into the stock? Investing is certainly not my forte' so looking for advice

[SNAPFisher]

Originally Posted by KGB

That’s because I’m still ****ed that I sold it in $250 range and have been sitting on a side line ever since!

LOL!
Best one I can compare is I bought 250 shares of Shopify for $40 a share. Sold them for $60 a share thinking I did well and patting myself on the back...

[BuckCuller]

Originally Posted by KGB

And Nvidia hit the all time high at $527!

I still own it.
However it is just offsetting a few of my poor choices but hey I’m in for the long run, so some of them could turn around.

[DiabeticKripple]

Originally Posted by MountainTi

Question Dean. Have my entire TFSA in funds right now and not super happy with the way they are performing. Thinking of moving it over to 7% + dividend paying stocks such as Enbridge, TC et al. In my mind it would be a good choice for a TFSA. Thoughts? Would you take the dividends paid out or just roll them right back into the stock? Investing is certainly not my forte' so looking for advice

my dividends just get paid out as cash into my TFSA and i just reinvest them back into it every few months.

[Dean2]

Originally Posted by MountainTi

Question Dean. Have my entire TFSA in funds right now and not super happy with the way they are performing. Thinking of moving it over to 7% + dividend paying stocks such as Enbridge, TC et al. In my mind it would be a good choice for a TFSA. Thoughts? Would you take the dividends paid out or just roll them right back into the stock? Investing is certainly not my forte' so looking for advice

If I was doing it, I would definitely rather have Enbride, TRP, HXS/VFC etc, than mutual funds, but I am REALLY not a fan of mutual funds for much of anything. That said, choice of investments also depends on horizon. TFSA are not taxed on capital gains or dividends so what you are looking for is maximum growth. If I had 30 plus more years to grow stuff I would be looking at emerging tech amd the big 7. TRP, ENB etc are old economy, declinig, growth industries. The money to be made going forward will more and more be in the new economy.

[roper1]

Originally Posted by SNAPFisher

LOL!
Best one I can compare is I bought 250 shares of Shopify for $40 a share. Sold them for $60 a share thinking I did well and patting myself on the back...

Feel your pain, I bought Eli Lilly at $35, par Canadian dollar. Sold it a couple years ago at $275US, with a .75 Canucker.......oh wait, it's @ $625US today

[fishtank]

Originally Posted by roper1

Feel your pain, I bought Eli Lilly at $35, par Canadian dollar. Sold it a couple years ago at $275US, with a .75 Canucker.......oh wait, it's @ $625US today

Don’t get many 10x, but when you get em take it profit is profit .

If have that feeling of missing out just google the Bitcoin pizza guy ….. it will make you feel better

[KGB]

Originally Posted by SNAPFisher

LOL!
Best one I can compare is I bought 250 shares of Shopify for $40 a share. Sold them for $60 a share thinking I did well and patting myself on the back...

Lol I hear you buddy! I also bought Shopify at around $30 and sold at 70. Then I was watching it going nuts to $210! I was so mad at myself! And then ittanked again! Went down to $40…. I waited and waited and finally got another position at around $55…. Still holding.

[big zeke]

Bought Nvidia about 18 months ago (never heard of them before). Took all my seed out a while ago...now trying to figure out when to ditch the rest. Picked up bunch of Shopify with the seed...23 was a petty good year.

What to jump into next...still trying to figure that out.

[Map Maker]

Yeah. Definitely fun talking about the big winners but whole point of stocks is for your winners to out perform your losers.

I’m not sure about who the winners are this year but I went thru some top tech that are funding AI and took the ones with best cash position.
I also started buying some copper miners as I think that will be a strong play for next few years.

[Cement Bench]

bought 4g shares in scotia bank today

not my fav bank but 6.8 % dividend and down 2% today at time of purchase

will it go back to the other purchase Halloween 2023 at just over 55 bucks, when the dividend was 8.71 % and should have bought more , maybe in 2024

HOPE FOR A RECESSION to get it at 50 bucks and then buy a smattering of bank stocks

darn near 70 and want some bank stocks with a healthy dividend to out half our savings into and not sell unless they double, get a good dividend on solid stocks for the next 5 to 15 years as a mostly secure investment for the wife if I pass

she dislikes investment folks and so do I


not exciting to most of you but REAL EXCITING TO THIS OLD MAN

selling the farm this spring in my sale contract so will have some more to plough into bank stocks later

will the market pull back for 2024 election in usa and some of Europe, who knows

better than 3-5 % in annual Vic’s right now that most don’t allow early withdrawal

wish I had the money Halloween for 55 Scotia bank stock price but you can time the market when you have no funds to invest

later

signed mr boring junior

[CDN offroader]

Originally Posted by Cement Bench

bought 4g shares in scotia bank today

not my fav bank but 6.8 % dividend and down 2% today at time of purchase

will it go back to the other purchase Halloween 2023 at just over 55 bucks, when the dividend was 8.71 % and should have bought more , maybe in 2024

HOPE FOR A RECESSION to get it at 50 bucks and then buy a smattering of bank stocks

darn near 70 and want some bank stocks with a healthy dividend to out half our savings into and not sell unless they double, get a good dividend on solid stocks for the next 5 to 15 years as a mostly secure investment for the wife if I pass

she dislikes investment folks and so do I


not exciting to most of you but REAL EXCITING TO THIS OLD MAN

selling the farm this spring in my sale contract so will have some more to plough into bank stocks later

will the market pull back for 2024 election in usa and some of Europe, who knows

better than 3-5 % in annual Vic’s right now that most don’t allow early withdrawal

wish I had the money Halloween for 55 Scotia bank stock price but you can time the market when you have no funds to invest

later

signed mr boring junior

I like something more like HCAL, holds all big 6 banks with a modest amount of leverage. Monthly distributions give you realized gains, not paper gains. No need to ever sell as they just keep pumping out income which can be reinvested to grow the overall amount, or used as required. Plus, being an ETF, I don't pay a transaction fee when buying through Questrade.

[Dean2]

A little long winded, but long story short, this article and current events are bearing out my statements from quite a few months ago. Despite all the Jaw Jacking, and spin doctoring of the Central Banks and many politicians, as well as market "Experts": Inflation is not going to be easily tamed, and lower interest rates are still quite a ways down the road.

Government spending is still compeltely out of control, supply chain issues are now being intentionally fostered to allow price increases, on-shoring is causing supply disruptions and retail grocery stores have figured out they can run with half empty shelves, significantly reducing their inventory costs. Post Co-vid people will now buy what is available, rather than what they actually want. For example, it is now normal to see, one brand of potato chip rather than 5, one brand of canned soup, no supply of rice for a few weeks and then large bags fly off the shelves at twice the old price when there finally is some taken out of storage and put on the shelves. Most grocery stores and many other retailers are finding ways to retrain consumers to accept far less choice and much higher prices, driven by supposed shortages.

Think about these trends when looking at where you want to invest your money. Many of these things are big negatives for people as consumers, but it also drives bottom lines.

Canada’s core inflation measures rose at a faster pace than expected while the headline rate also ticked up due to base effects, underscoring the challenging final stretch of the central bank’s campaign to restore price stability.

The consumer price index rose 3.4 per cent in December from a year ago, following a 3.1 per cent increase a month earlier, Statistics Canada reported Tuesday in Ottawa. That matched the median estimate in a Bloomberg survey of economists and was driven by gasoline prices falling more in December 2022 than they did last month.

But two key yearly measures tracked closely by the Bank of Canada that filter out more volatile components — the trim and median core rates — also increased, averaging 3.65 per cent, from an upwardly revised 3.55 per cent a month earlier. That was faster than the 3.35 per cent pace expected by economists.

The release prompted traders to push back bets on when the central bank will begin lowering rates from April to June.

“The pick-up in underlying inflation pressures raises the risk that the Bank of Canada will need to keep interest rates higher for longer than markets are now pricing in, with the economy suffering further as a result,” said Stephen Brown, an economist with Capital Economics, in a note to investors.

On a monthly basis, the consumer price index fell 0.3 per cent, also matching expectations. That’s the biggest decrease since December 2022, and is largely due to declines in prices for travel tours and gasoline.

Another key measure watched by the Bank of Canada, a three-month moving average of underlying price pressures, rose to an annualized pace of 3.63 per cent, from 2.94 per cent a month earlier, according to Bloomberg calculations. The uptick was largely due to higher rent and passenger vehicle prices captured by the trim core metric.

The yield on two-year government bonds rose as much as six basis points after the release to 3.893 per cent. The Canadian dollar fluctuated before settling at $1.347 per U.S. dollar just before noon Ottawa time.

This is the last of two inflation reports before the Bank of Canada’s rate decision next week. The majority of economists expect the bank to keep borrowing costs unchanged, and anticipate a series of rate cuts starting in the second quarter.

Governor Tiff Macklem warned in December of a few “bumps” along the path to returning inflation to the 2 per cent target. The governor and his officials held the benchmark overnight rate at 5 per cent for the third straight meeting last month, saying they’re still concerned about the outlook for price pressures.

What Bloomberg Economics Says....

“Ultimately, we expect softening economic conditions and a loosening labor market — paired with progress on disinflation — to lead the BoC to cut policy rates mid-year, ending 2024 with its target for the overnight rate near 4.0 per cent.”

— Stuart Paul, U.S. and Canada economist.

“If you are looking for data to signal a rate cut is imminent, this isn’t it,” said Leslie Preston, a senior economist with Toronto Dominion Bank, in a report to investors. “This leaves the Bank of Canada cautious as it considers when it will be appropriate to cut interest rates.”

However, she said despite Tuesday’s report, she expects inflation and the economy will have cooled sufficiently by the spring for the central bank to make its first cut in April.

December’s report once again shows shelter inflation as largest upside contributor to the year-over-year price gains, as past rate increases, a supply shortage and high immigration levels pushed up prices. Mortgage interest costs jumped 28.6 per cent and rent rose 7.7 per cent. Excluding shelter costs, the consumer price index rose 2.4 per cent from a year ago, versus 1.9 per cent in November.

The bank should start slashing rates as early as April, said Tu Nguyen, an economist with tax and consultancy firm RSM Canada. “Given that the economy has slowed to a crawl and that inflation at this point is mostly driven by shelter, keeping the rates higher for longer will not help,” Nguyen said in a note to investors.

The Bank of Canada cannot fix the housing shortage driving high rent growth and rising mortgage interest payments are directly caused by monetary policy, Nguyen pointed out.

On Monday, the central bank’s consumer survey showed expectations for price growth for some key consumer goods — notably food and gas — are falling, likely contributing to the decline in people’s perceptions of overall inflation. But inflation expectations for services — like rent, entertainment and dining — remain elevated, which may be holding back progress on restoring overall perceptions for price gains.

In December, services inflation slowed 4.3 per cent from a year ago, versus 4.6 per cent a month earlier. Goods inflation rose to 2.4 per cent, compared with 1.4 per cent increase in November.

The purchase of passenger vehicles index rose 2.3 per cent on a year-over-year basis, following a 1.5 per cent increase in November. The increase was led by higher prices for new passenger vehicles.

Regionally, prices grew at a faster pace from a year ago compared with November in nine of 10 Canadian provinces, except in Manitoba. Prices for fuel oil contributed the acceleration, and Atlantic Canada, where it’s more commonly used for heating homes, saw bigger price gains compared with others.

In 2023, the consumer price index rose 3.9 per cent on an annual average basis, following a 40-year high increase of 6.8 per cent in 2022 and 3.4 per cent in 2021.

Those that believe the Government knows how to spend our hard earned money better than we do, will fall for this one too.

[fishtank]

Well said Dean ! At the grocery stores people are opting for cheaper brands as it make 20-30% different in the total . The billionaires index has an increase of 5 trillion in wealth in the last 3 years. Seem like a trickle up effect of the government bailouts and covid money almost like a bailout for the stock market like in 2009.

[Fisherdan]

With the price of natural gas in the tank, as well as oil stocks suffering so much, just curious if anyone is adding to their positions?

I purchased some TOU today, and a little bit of Ensign last week. Hopefully not premature, but man oh man is the price of natural gas ever cheap right now! And despite oil hanging in the 70s, some of these smaller-mid cap oil companies seem really beaten up.

[Map Maker]

Originally Posted by Fisherdan

With the price of natural gas in the tank, as well as oil stocks suffering so much, just curious if anyone is adding to their positions?

up.

Yeah oil stocks are really underpriced right now. I just bought a driller who has a p/e of 2!
Insane but no one is buying oil stocks.
Cyclical in nature, but has oil hit a peak?

Except for above, I’m just holding oil/pipeline stocks right now.
My 0.02.

[Cross Eyed Cowboy]

Originally Posted by Dean2

supply chain issues are now being intentionally fostered to allow price increases, on-shoring is causing supply disruptions and retail grocery stores have figured out they can run with half empty shelves, significantly reducing their inventory costs. Post Co-vid people will now buy what is available, rather than what they actually want.

One certainly does not hear this fact mentioned very often, if it all, at least in public or to the public.

[Cement Bench]

spoke with a grocery store owner a couple of weeks ago

nice chap and asked how come the Campbell soup on sale is always out if you go after lunch?

he asked how long ago I noticed, to which I replied about a year or so

he mentioned they have been doing it a bit longer and only provide a small amount of product deliberately for the sale
said they have found nation wide that folks will come back in the next few days to buy what is now not on sale

that boosts demand at the full retail price and the chain wishes that to happen and tracks daily sales and lets them know when they appear to be out of line of the rules based on sales

[Dean2]

Though many of you would find this interesting.

Rob Roach, ATB ECONOMICS | January 25, 2024
Mind the gap: The rise and fall of the disposable income gap in Alberta


Alberta is an “economic powerhouse” in Canada. This is reflected in a number of indicators, including the highest GDP per capita, the highest employment rate, the highest retail sales per capita, and highest average weekly earnings of any province.

With the release of updated disposable income per household data* by Statistics Canada on Monday, we have another measure of Alberta’s economic oomph to consider.

Sure enough Alberta had the highest disposable income per household of any province in 2022. At $113,572, disposable income per household in Alberta was 22% higher than the national average of $93,290. The closest province was B.C. at $99,474.

The difference is largely due to the higher wages and higher employment rate in Alberta, as noted above.

What’s telling is how household disposable income in Alberta has changed over time.

Household disposable income in the province has been higher than the national average since 1999 when the current data series began (and likely for many years prior), but the difference has gone through some dramatic fluctuations.

As you can see from the chart below, the gap widened in the mid-2000s when Alberta was in the midst of a natural gas-driven economic boom to 33% higher than the national average. It widened again over the first half of the 2010s during the provincial economic boom brought on by elevated capital spending on oil sands projects. A series of economic events—the 2015-16 recession, market access issues in 2019 and COVID in 2020—have been accompanied by a reduction in the gap from the peak of 41% reached in 2015 to the smaller (but still wide) 22% seen in 2022.

*Household disposable income is the sum of all income received by members of the household including government transfers (e.g. Old Age Security benefits) minus current transfers paid by them (e.g. income tax). As such, it is the amount available to a household for final consumption of goods and services and voluntary savings.

Answer to the previous trivia question: Gold was discovered on January 24, 1848 by James Marshall at a sawmill in California. The discovery sparked the California Gold Rush.

Today’s trivia question: Popularized by economist John Maynard Keynes, what is the paradox of thrift?

[tranq78]

Originally Posted by Dean2

Today’s trivia question: Popularized by economist John Maynard Keynes, what is the paradox of thrift?

You, your friends, your family need to save money.

But you want everyone else to spend their money. Because spending money is good (stimulative) for the economy.


The internet definitions of this are all multisyllabic-gobble-wobble nonsensical words. Nothing in plain English.