Pay very special attention to this documentary if you are not a sophisticated investor. The reality is most financial advisors are NOT very educated about the financial markets themselves. I had a bad experience myself with a dumb financial advisor at a major Canadian bank.
The majority of financial advisors have no idea about market timing and they usually are just salespeople wanting to sell you financial products so they can collect either commissions or residual income as long as you keep your money in the investment vehicle they recommend.
A over the place in the western world, but especially in America and Canada the news has been bashing China and blaming China for the stock market crash. The truth is much different from what the mainstream news media is trying to force down and propagandize to the people of the world.
In addition to the oil price and Toronto Stock Exchange plunging from its high of 15700 points, now with the surprise rate cut by the Bank of Canada, the CAD dollar is taking a hit and along with that the Canadian Bond yields are going down too….Ouch.
The oil plunge will cause significant problems in western Canada, particularly Alberta which is now seeing huge layoffs in the oil fields and that will have ripple effects to be felt within 6 months.
First of all 25% of Canadians think that their mortgage and car payment is not considered as DEBT. Let me just say that these people need some serious “personal finance” training from Rich Dad, Poor Dad. Anything that takes /subtracts from your monthly income and cause you to have less disposable income / spending money is considered a liability or debt. Also any loan/credit that keeps you from saving money in a TFSA or high interest account is detrimental to your financial health.
As U.S stock markets reached new highs, the question is “How high can the S&P, Nasdaq and Dow Jones can go?
The answer is no one knows, but usually the data and charts don’t lie, and below is an article from “Acting Man” with some charts that says we may be near a top.
The markets has gone up after 3pm and we don’t know if it will trend much higher. If the bond buying / QE stops in October, that will mean the markets are going to fall hard. Hmmm….so maybe looks like we are going to see an October 2014 crash.
The assets in these mutual funds are illiquid. Very hard to sell, they don’t trade frequently, basically the liquidity is not there and when people cash out or redeem there is going to be some big problems.