Financial Markets Meltdown

[fishtank]

More correction on the way….

[MooseRiverTrapper]

Look out below!!!

[Twisted Canuck]

Originally Posted by big zeke

Good day to not look at the markets, been a rough week. Not sure what is winning (if anything).

I guess it's only a loss if I sell, which I won't.

I think I need a hug
Zeke

Yep. I just try not to look. Or I tell myself February 2020 was way worse...

[bdub]

The Tech and Crypto beating continues. Wow.

Netflix down 21.8%, Shopify down 13.4%, Facebook down 4.2% today, to name a few. Bitcoin off 10% today as well. Nasdaq is now down 12% this year so far. Most of the stuff getting killed is so overvalued that we could see some of those Tech names get cut in half from here easily IMO.

I'm having a great start so far despite today(probably just cursed myself). We're ahead of the TSX by 5.1% so far this year while taking much less risk. I thought this rotation due to rising rate expectations was going to kill the growth/risk trade and we positioned for it thank goodness. Just waiting patiently now to put some money to work again. We'll see what happens. BOC rate decision and comments next week could be interesting.

Some days it is best not to look though.

[MooseRiverTrapper]

Overvalued crap and fake money going back to their long term median.

[marlin1]

worst week I've seen for my RRSPs in a long time

[Drewski Canuck]

This may be a precursor to troubles coming in Ukraine.

The week before 9/11 the stock markets tumbled when Saudi money was being vacuumed out of the US Exchanges. Now the US watches for this.

If you were a Russian Oligarch with political ties, you might right now be worried about your accounts being frozen in Western Countries as part of the Economic Sanctions package against Russia should Russia decide to invade.

Not sure if that is the reason for the sell off, but markets do not like aggression like Russia is planning.

Now if you own Oil Stocks or Oil Mutual Funds, you may not be too concerned. If Russia is sanctioned so it cannot sell oil and gas for economic sanctions for a Ukrainian invasion, this will take more oil out of the World Markets.

Drewski

[fishnguy]

Originally Posted by Drewski Canuck

If Russia is sanctioned so it cannot sell oil and gas for economic sanctions

That isn’t going to happen, Ukraine or no Ukraine.

[Sundog57]

Either way if the Russians make more threatening noises it will only increase upward pressure on oil prices. Russia currently produces 12% of the world's crude - take that out of the mix and watch the prices go nuts.

[straight]

Originally Posted by marlin1

worst week I've seen for my RRSPs in a long time

Since I got control over my RRSP I sleep much better.

[fishtank]

Originally Posted by Twisted Canuck

Yep. I just try not to look. Or I tell myself February 2020 was way worse...

February and March is on the way …. Maybe I can average down .

[MooseRiverTrapper]

Originally Posted by Drewski Canuck

This may be a precursor to troubles coming in Ukraine.

The week before 9/11 the stock markets tumbled when Saudi money was being vacuumed out of the US Exchanges. Now the US watches for this.

If you were a Russian Oligarch with political ties, you might right now be worried about your accounts being frozen in Western Countries as part of the Economic Sanctions package against Russia should Russia decide to invade.

Not sure if that is the reason for the sell off, but markets do not like aggression like Russia is planning.

Now if you own Oil Stocks or Oil Mutual Funds, you may not be too concerned. If Russia is sanctioned so it cannot sell oil and gas for economic sanctions for a Ukrainian invasion, this will take more oil out of the World Markets.

Drewski

The saudis knew 9/11 was going to happen and were switching to cash?

[bdub]

Originally Posted by fishnguy

That isn’t going to happen, Ukraine or no Ukraine.

Agreed.

Europe is pretty heavily dependent on Russian natural gas and oil. If they decide to shut down energy sales to Europe over the Ukraine, the entire European economy will grind to a complete halt and Europeans will be freezing to death this winter. If Putin invades, he will probably do it during winter as he has all of Europe by the ____'s.

And sales of energy from Russia will continue, sanctions or not. Much of it to Asia, China. They are reducing their dependance on US dollars and the ability of the west to impose meaningful sanctions by dumping huge amounts of US treasuries. They used to hold a large amount of US debt and that is now down to almost nothing. In the same period they have also nearly tripled their holdings of gold bullion. As a side note, Canada currently has zero gold reserves in their vault.

[MooseRiverTrapper]

Black Monday for growth stocks coming up. Hopefully it doesn’t drag Canadian E&Ps with it.

[bdub]

Originally Posted by MooseRiverTrapper

Black Monday for growth stocks coming up. Hopefully it doesn’t drag Canadian E&Ps with it.

Kinda feels like it. I think the risk off mood will probably spillover to everything short term. At this level of pain in the tech stocks there is going to be lots of forced selling in other sectors. This time around investors can't even hide in bonds with the FED sounding like they are certain to raise rates.

IMO Golds looking like a nice place to hide. There were big inflows last week into the Gold ETF's for a change. The miners are printing cash like crazy and no ones really interested/paying attention. Cash costs of 1000-1100$ ounce is pretty appealing and stocks are trading cheap. Tempting anyway.

[fishtank]

Damn everything is red …

[Map Maker]

Originally Posted by fishtank

Damn everything is red …

Feels like Christmas.
Nibbling away.

[Pixel Shooter]

Biggest drop in a long time. Be an interesting week. Would like to see more red and bigger correction 🙂

[Dean2]

Originally Posted by fishtank

Damn everything is red …

Yes they are, and there will be a ton of people who bale, and end up paying a bunch of capital gains. Even if they manage to buy back in lower than they sell, it takes a long time to get the 25-30% in taxes back. Long and short, even with today's drop, invested right you are still up over 35% since Feb 2020, just before the big dump in March and April. If you stayed in you paid no taxes. If you had been super good, or lucky and bailed in Feb, bought in April May, after paying tax you are up only slightly more than that.

If you bailed in tax deferred and bought back in right you did great but how many bought in May and how many more waited till July or August to be sure it wasn't a dead cat bounce. Just read back this thread alone, from the beginning, and see how far off so many peoples' predictions were and how extreme the fear was.

There is no up in investing without down turns, that follow up cycles, as long as you are buying high quality companies that are growing, paying dividends and have market force, investing isn't very risky. If you chase Peleton. Red Robin, the new electric car companies, Cannabis stocks and the high flying tech stocks, you have already been killed off, and you missed the right time to sell them by at least 5 months.

Buy quality and quit worrying about the fluctuations. This is the portfolio I posted a few weeks back, sorted by highest to lowest returns over 1 year. Check out the 5 and ten year figures too. These returns do not include dividends, dividend reinvestment etc. The is share price growth only. Many of these stocks pay from 3.5 to 7% dividends per year on top of capital appreciation.

[CDNOutdoorsman]

So I've got some room to add to my RRSPs this year. where would a good place to invest it be?

[Drewski Canuck]

hate to be morbid, but Governments of the world are pouring money and equipment into Ukraine.

Russian Sovereign Funds and their Oligarchs are pulling money out of the Global Market.

Alot of Fund Managers use algorithms that manage trades based on sudden changes in markets that in turn trigger computer generated sell orders.

It says alot that a number of NATO Baltic countries are calling for NATO assistance as they know that they will just be soaked up by Russia in a conflict.

What is disappointing is that Germany, the one Country that should remember what is was like to live under Russian rule, is sitting on its hands and doing nothing. The USSR really never was about Communism, even before the collapse of the USSR, it was run by KGB Strong Men, who still are in power in Russia today.

The Stock Market is just another tool that the Russians are using against the West, just like Russian Cyber Attacks. This sell of is more about global politics than it is about economics.

Drewski

[straight]

Originally Posted by Drewski Canuck

...The Stock Market is just another tool that the Russians are using against the West, just like Russian Cyber Attacks. This sell of is more about global politics than it is about economics...

Looks like those Russians can use anything to their advantage

[MountainTi]

Originally Posted by straight

Looks like those Russians can use anything to their advantage

It's all starting to make sense. The Oilers just need a few Russians on their roster....

[Map Maker]

Originally Posted by CDNOutdoorsman

So I've got some room to add to my RRSPs this year. where would a good place to invest it be?

It’s all a crap shoot to pick a stock or two.
Dean’s list is quality stocks.

When you watch specific stocks, you get in tune of what their real value is.
So in a little downturn like this, You have no problem throwing money at stocks cuz you know it’s temporary.
There is one stock I watch/own. It’s making money hand over fist. But it’s down almost 25% in last two weeks for no reason.
Year end quarterlies come out next week.
Should be a nice 25% return with little risk.

[MountainTi]

Originally Posted by Dean2

Seeing as how my 4% of my base salary is matched by my employer and goes directly into shares, nice to see my employer on the list. There's a profitable future in the "new" green energy

[fishnguy]

That a lot of volatility for one day, lol. But looks like common sense is prevailing.

[fishtank]

Originally Posted by fishnguy

That a lot of volatility for one day, lol. But looks like common sense is prevailing.

and its only monday...

[KGB]

What a chit show today! I started the day with -$50K and ended up with +4K….
Will have to check some slow and steady stocks, I’m getting too old for that kind of the excitement!

[Drewski Canuck]

Thank you Sovereign Funds for propping up the Markets!

There is no way that Private Investors have driven this late hour surge in prices.

Whether it was Alaska's Fund, or AIMCO, or Norway, or CPP, I thank you for salvaging today. It is only these huge players who can move the market that fast.

Tomorrow may be a different day but we will have to wait to see what happens.

It is clear that alot of Crypto money has come back to the Stock Markets, so that helps as well.

Drewski

[Dean2]

Originally Posted by CDNOutdoorsman

So I've got some room to add to my RRSPs this year. where would a good place to invest it be?

It is never optimal to be in only one stock but if I hand to pick only one to put all my money in longterm it would be RBC or TD Bank. Not anywhere close to what I recommend for an investment strategy but it is the honest answer to your question based ONLY on what I would do personally in the condition.