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If Bank of Canada Lowers Rate This Week, Then What?
March 14, 2020
10:01 pm
picassocat
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I made the right call at the right moment: I exited the equity market before the correction, then a week later the corporate bond market, then days later the government/Treasury bond market. All I have left is money in the bank and an occasional bear index fund, but that is risky, its a day-by-day thing: buy in the morning, sell in the afternoon. I hate being a day trader. There're almost nowhere to hide.

March 15, 2020
3:34 pm
Winnie
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I'm probably tho most uneducated saver on this forum, seriously.

Not because that I can't learn or have some problems with learning, not at all.

I just simple don't want to learn about all those things (treasury bonds, equity market, corrections, mutual funds, bear market, bull market and all other things).

I'm over 60 years now and during my whole life I only used guaranteed investments (savings accounts and GIC's) and not guaranteed (physical gold bars/coins), nothing else.

Before 1999 my average yearly return on my investments was appox. 5-7% each year (estimate, don't remember all numbers), from 1999 to 2019 - 9% each year and for the last year - 20% return.

I was able to survive without all those markets, bonds, etc.
Maybe my return isn't good or even close to those educated traders, but at least I'm living very simple peaceful life without worrying about "corrections", "overnight rates".
Yes, now I need to worry about that nasty new virus, but that's another story, not related to investments.

March 15, 2020
6:52 pm
picassocat
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Guaranteed investments that generate 20% return, hard to believe, maybe with gold? I'm also over 60 and I'm new (less than a year) on the stock market and it's fun and challenging. There is a lot to learn, but I want to learn. Did I make mistakes? Of course I did and probably will make more, but I learn from my mistakes and I learn quickly. Passive investing is boring but it usually works.

March 16, 2020
5:14 am
savemoresaveoften
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picassocat said
Guaranteed investments that generate 20% return, hard to believe, maybe with gold? I'm also over 60 and I'm new (less than a year) on the stock market and it's fun and challenging. There is a lot to learn, but I want to learn. Did I make mistakes? Of course I did and probably will make more, but I learn from my mistakes and I learn quickly. Passive investing is boring but it usually works.  

An investment that guarantees 20% return year in and year out is called Ponzi scheme.

Sorry Winnie, not sure what your point is re not wanting to learn stocks, bonds and then mentioned your stellar return every year. I believe every one should have the desire to learn no matter what the subject is or the age. Knowledge is priceless.

March 16, 2020
6:25 am
Bud
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GOLD
-63.90 (-4.21%)

Gold does well leading up in times of crisis then in the eye of the storm as everyone sells everything it loses value. Another example is the junior gold index where financing dries up.

March 16, 2020
7:20 am
Winnie
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Anyways, even today right now, when GOLD -63.90 (-4.21%), price of 1 oz gold Maple Leaf is $2,190 CND.

I purchased my gold Maple Leafs in early March 2019 for $1,780 CND.

That is around 23%.

Let see how low gold prices will go further. I'm not worried at all.

March 16, 2020
11:15 am
Winnie
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savemoresaveoften said

An investment that guarantees 20% return year in and year out is called Ponzi scheme.

Sorry Winnie, not sure what your point is re not wanting to learn stocks, bonds and then mentioned your stellar return every year. I believe every one should have the desire to learn no matter what the subject is or the age. Knowledge is priceless.  

Buying physical gold called Ponzi scheme?
You know better, I'm not educated, sorry.

I truly don't want to learn stocks, bonds just because I always like simple things and keeping my life simple as much as possible.

I was happy for many years with savings accounts and GIS, when return was above 3%.
Later physical gold brought me average 9% return for 20 years previously and about 20-25% return for the last year alone.

I hope, that this Ponzi scheme will continue for the next 20 years, but it's hard to predict anything, especially in future.

March 16, 2020
1:59 pm
savemoresaveoften
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never said physical gold is ponzi scheme.

But if anyone / fund advertise their primary investment is in physical gold and will GUARANTEE 20% return EVERY year, then yes I will call that a ponzi scheme and thats because of the claim, not the asset they invest in.

March 16, 2020
2:19 pm
Brimleychen
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Winnie said

Buying physical gold called Ponzi scheme?
You know better, I'm not educated, sorry.

I truly don't want to learn stocks, bonds just because I always like simple things and keeping my life simple as much as possible.

I was happy for many years with savings accounts and GIS, when return was above 3%.
Later physical gold brought me average 9% return for 20 years previously and about 20-25% return for the last year alone.

I hope, that this Ponzi scheme will continue for the next 20 years, but it's hard to predict anything, especially in future.  

Thumb up! Winnie!

Having buying 1 oz gold bars since 2003. Just keep doing whatever it is. It is not for investments for me. Just for the peace of mind. No tax, and safe. The best thing is you don’t need to liquidate them, and just pass it to your grand children when time is right.

A lot of people here is using gold future price and chart, they are mixing precious metals, together with so called gold ETF and paper gold funds. They are all ponzi...

Lol!

March 16, 2020
3:48 pm
Winnie
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I completely agree with you, Brimleychen!

Me too, I also started buying bars/coins not for investment at all.
So far I like it and I'm not afraid, if gold price will go down below $1,000 US temporarily, but I would prefer that price to be all the time above $1,500 US.

March 17, 2020
6:50 am
Loonie
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Assuming this chart is accurate, it shows the volatility of gold
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

March 17, 2020
8:47 am
Norman1
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The price of gold is volatile.

I wrote earlier that the last 20 years was good for those who bought gold. However, the previous 20 years was not.

Similar with those who loaded up on 30-year bonds about thirty years ago when interest rates were around 12% per annum.

One is not going to get the same spectacular results with 30-year bonds in the next 30 years unless interest rates go negative to -10% per annum.

That's one of the challenges of investing. The consequences don't hit right away like it does with some endeavour like swimming. Breathe incorrectly and one gets water in the lungs and up the nose within seconds while swimming.

In contrast, people who loaded up on those overvalued tech stocks around 2000 didn't see the consequences until years later. I know a few people who are the last owner of Nortel shares. sf-frown Thought I was not so bright for selling them.

March 17, 2020
2:21 pm
Winnie
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Please understand, that I was buying gold bars/coins not for investment at all.
And, keeping money all the time only in savings accounts and GIC's - also not for investment.
I always wanted not to loose my money and, if possible, just increase them by approx. rate of inflation.
Than is it. I never was involved in investing and never learned about that.

Just because of pure luck, I received a good returns (much better, than rate of inflation) for the last 21 years.
I'm not expecting any return in the future, I'm just thinking right now what to do, so I would not loose much of that received good return. Not sure what to do, especially if we will have here negative interest rate soon.

March 18, 2020
5:06 am
Bud
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Reuters:
"Gold fell more than 2.5 per cent on Wednesday as concerns over the global economic impact from the coronavirus outweighed stimulus measures by the United States, forcing investors to dump most assets for the safety of cash."

March 18, 2020
9:08 am
picassocat
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Bud said
Reuters:
"Gold fell more than 2.5 per cent on Wednesday as concerns over the global economic impact from the coronavirus outweighed stimulus measures by the United States, forcing investors to dump most assets for the safety of cash."  

I ejected the stock market just in time and now my entire portfolio is in cash / money market. There is a time to buy, a time to sell and a time to hold. It's now time to hold.

March 18, 2020
2:58 pm
Norman1
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The news of gold isn't surprising.

Lots of businesses are closing temporarily. Workers are facing interrupted income. Last thing people are thinking about now is buying gold jewellery or gold bullion.

I think people who have gold are thinking about selling it for cash. That cash would be handy to pay for life's necessities, like food, medicine, and housing.

That's even more true for bitcoin and other virtual currencies.

March 18, 2020
5:39 pm
picassocat
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Anything that's not nailed down is being sold, stocks, bonds and gold.

April 12, 2020
1:06 pm
AlainJF
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picassocat said
Anything that's not nailed down is being sold, stocks, bonds and gold.  

Are you considering another direction based on the current situation, about a month later ? I am personally totally puzzled about investing in anything now...

April 12, 2020
7:13 pm
picassocat
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AlainJF said

Are you considering another direction based on the current situation, about a month later ? I am personally totally puzzled about investing in anything now...  

Everyone has his or her own style, but this is what I’m doing just now:

Last week I invested in US treasury bonds and Canadian government bonds ETF's. I’m staying away from corporate bonds.

This week I’m buying into some equity ETF/mutual funds, but very targeted, namely:

Utilities, healthcare, consumer staples and technology. Those are defensive sectors, but I’m not going to keep them very long, I will sell them all at the end of the 2nd quarter, before the numbers come in. I’m still undecided if I will keep the bonds then, maybe.

April 12, 2020
10:57 pm
picassocat
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Oh, and one stock: Canadian Pacific

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