Equities

I think about equities a fair bit these days. My nest-egg is tied up with them. The value of my currency is tied up with them. Even my politics is tied up with them.

Yesterday, revelations/admissions that Trumpists colluded with Russians to subvert the electoral process caused a little tweak in the Dow Jones Index within minutes of publication in New York. That’s just the tip of the iceberg. The Dow has been on a tear since the election of Trump based on the assumption that Trump in the White House will be good for investors. That’s not sustainable even if by some miracle Trump delivered all his promises. However, Trump has told so many lies and this most recent revelation almost makes it certain that Trump will be impeached sooner or later. At the moment, a majority of Congress would probably agree to impeachment, 100% of Democrats and 50% of Republicans should be enough. All it takes is a little push to start the sticky snowball rolling.

So, I’m sitting here, heavily invested in gold, watching the Canadian currency rise against the US dollar, hoping the fall of Trump doesn’t actually break anything, just makes a major correction. We should know when the indictments flow with articles of impeachment. Trump has been repeating the lies that there was no collusion, no obstruction of justice and no Russian connection. He’s repeated those lies so many times, there’s no alternative facts to retrieve his position. With no credibility and Congress passing veto-proof legislation all he can do is arrange another firing of investigators which will trigger impeachment.

Besides the politics, Trump has actually done much to harm the US economy in the long run. Anchoring USA back to oil and coal could prevent uptake of renewable energy which is the way all the competition is going. That will make USA less competitive within a few years. Certainly, not implementing universal healthcare will tie an anchor to the neck of the US economy for a decade or more. You just can’t have people in their most productive years avoiding healthcare when it has a chance to prevent illness/disease/loss of workdays. Will the best and brightest continue to migrate to USA when they know they will be persecuted as “others” and bankrupted by illness? Trumpism is killing the goose that laid the golden eggs.

The good days roll. Surely money that has been flowing into the US economy will be diverted somewhat to Canada and we will trade with the rest of the world while USA slips further into a quagmire of messy politics, restrictions on trade, self-inflicted sanctions, still no universal healthcare and a government of lies run by the liar in chief.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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12 Responses to Equities

  1. Grece says:

    I just want to purchase healthcare, as I do auto and home insurance online.

    Right now for me, it is cheaper to pay in cash then having to pay a $300-500 monthly payment with a $5000 deductible. Non-freemarket healthcare drives up prices and lowers the quality of service.

  2. ram says:

    Grece said: “What country did you move too?”

    Australia. Also single payer, similar to Canada in that respect, but warmer.

  3. Grece says:

    The lack of health care is the major reason I left, most of my friends left, and many of my professors left.

    What country did you move too?

  4. ram wrote, “America’s lack of affordable health care hurts them socially and economically in more ways than they can imagine.”

    Amen, except that Canada is part of America but not part of USA and Canada has universal healthcare via single-payer. Single-payer makes a lot of sense if you trust elected representatives to do the right thing. I remember a time before MediCare and it was grim with people deciding whether they could afford treatment of family members. Life-expectancy has shot way up since those days and folks aren’t mortgaging the farm to treat cancer. USA is just being stupid allowing insurance companies rather than government to control the healthcare system.

  5. ram says:

    The USA not having single payer health care is what is keeping it a third world country (albeit with nuclear weapons and a massive military).

    The lack of health care is the major reason I left, most of my friends left, and many of my professors left. All of us are highly educated, high earning, technical professionals.
    America’s lack of affordable health care hurts them socially and economically in more ways than they can imagine.

  6. Grece says:

    Hey Robert!…yesterday the US Stock Market set another all time high!

    The Dow Jones Industrial Average recorded its 23rd all time high of 2017 yesterday closing at 21,532. There have been a total of 120 days where the markets have closed since President Trump’s inauguration on January 20th. The ‘DOW’ has closed at all time highs 23 of those days for nearly 20% or one-fifth of the days the market has been open. The market is up 9% since the inauguration.

    Since the election on November 8th the DOW has closed at record highs an amazing 40 times! Nearly one-fourth or 24% of the 168 days the markets have closed have been record highs since the November 8th election. The market is up 17% since the election!

  7. Grece says:

    Hmmmmm…lets looks at the Dow Robert.

    https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1499889600000&chddm=98532&chls=IntervalBasedLine&q=INDEXDJX:.DJI&ntsp=0&ei=E3BmWZnXCtOCmAHf1ILgBw

    Seems to me, that Nov. 8th you find a huge swing upwards, why is that?

  8. Grece says:

    Robert, you are full of crap.

    Observing the price of the Loonie in the period of a few months, then gloating about the price rise is ignorant. You have to observe the macroscopic and long-term effects of currency exchanges to get a better picture.

    For instance, if you look at the exchange rates over the past five years, you will find 1:1 parity of both the Canadian and U.S. currencies, but now its down to 75-78 cents. So what this tells people, that they should move their holdings else where and they are at a good clip.

    In 2015, investors fled from stocks in Canada.

    This year investors fled from equities in Canada.

    Today, I read that the bank of Canada raised interest rates for first time in seven years, hmmmm.

    Then you read reporting like this: http://www.torontosun.com/2017/04/26/human-rights-tribunal-rules-brampton-landlord-must-pay-muslim-couple-12000 and you wonder about the sanity and longevity of a nation.

    Toss in carbon taxes, and you have a huge mess dead-set on a race to the bottom.

  9. Grece wrote, “Trudope and his carbon taxes have already done this in Canada and lot’s more”.

    Hmmm… I notice the Canadian dollar is up 3 cents since Trump came into power as more USAians invest in Canada. My stock portfolio is up about 15% since yesterday’s news. Thanks, Trumpists, for creating a flight of capital..

    While I was typing, CDN rose another cent since yesterday… It was around 74 cents back in November 2016. Now, it’s over 78 cents.

    Stock portfolio rose another couple % too. I should keep typing… 😉

  10. Grece says:

    So, I’m sitting here, heavily invested in gold

    Wait, you are invested in what again? Didn’t you mention mining stocks one time, but what about exchange-traded notes or exchange-traded funds Robert?

    Better yet, why not just sock your equity into bullion?

    Coincidentally, you could have bought some Bitcoins in 2010, or the at the bottom in January 2015 and could have a nice stash stored away on Beast.

  11. Grece says:

    Trump has actually done much to harm the US economy in the long run.

    Hahahah…Trudope and his carbon taxes have already done this in Canada and lot’s more, what with the flood of Mohammedans. Say bye-bye to your manufacturing base, along with your culture.

    Anchoring USA back to oil and coal could prevent uptake of renewable energy which is the way all the competition is going.

    The ONLY thing preventing the “uptake” of renewable energy is when government subsidies dry-up Robert.

    That will make USA less competitive within a few years.

    CHUCKLE.. you have no fundamental understanding in macroeconomics.

  12. Deaf Spy says:

    USA back to oil and coal could prevent uptake of renewable energy which is the way all the competition is going. That will make USA less competitive within a few years.

    Actually, the key energy resource today is natural gas. Renewable energy is still inefficient and can’t survive without transfers from the state.

    Certainly, not implementing universal healthcare will tie an anchor to the neck of the US economy for a decade or more.

    Universal healthcare is a sure way to burden the economy with taxes and lower the competitiveness.

    Will the best and brightest continue to migrate to USA when they know they will be persecuted as “others” and bankrupted by illness?

    Yes. Because the best and brightest, Robert, know to make sure they provide for themselves than wait for the State to give them. For example, in my country there is universal health care and it is quite wretched. That is why the best and brightest make sure to have additional private health insurances, sometimes provided by the employer.

    Surely money that has been flowing into the US economy will be diverted somewhat to Canada

    Bwa-ha-ha-ha-ha.

    and we will trade with the rest of the world

    You mean, buy cheap crap from China.

    Robert, this is not one of your better days.

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