Rrsp

[small_guy]

So where is everyone thinking of putting there money this year? Confused as my current mutal funds suck.

Thoughts, advice...

[faller]

With the way things are going i'm thinking under the matress ..

[waderow]

depends how much $$$ pretty soon it would be wise to put it into property or other shares. I would consider petroleum investments soon too, as we all know oil prices will climb. It is inevitable.

otherwise, if you're worried, GIC or bonds. But realistically, you might as well put it under your matress....

[natenator]

I'm considering buying 2 houses in vegas.

[waderow]

^ US property.... another good investment, buuut you will be sittin gon them for 5-10 i think

[natenator]

^ US property.... another good investment, buuut you will be sittin gon them for 5-10 i think
No worries. I can rent them out for almost triple what the mortage payment would be each month (I'll be paying cash).

[Descimus]

oh man i never have cash when it the time lol

[sobr]

If you want easy gains, then think of what the feds are doing..

Go long infrastructure and short gov't bonds for now, then think energy and other cyclicals in about 6-9 months.

[physique]

No worries. I can rent them out for almost triple what the mortage payment would be each month (I'll be paying cash).

are u sure? as we were just there and rents were very very low. we seen 3 bedroom houses renting for $500 and it included cable. be very hard to find a $500 a month mortgage even in this troubled time up there. unless it was a repo house maybe

even 3 bedroom condos just off the strip where $250 a month. thats unreal!

[Bowlcut]

GUYS! The US house market is not done from falling. Look at CNN Money today and you are seeing the foreclosed homes are quickly becoming the real market price. There is so much inventory on the market, plus people whose ARM's are resetting this year who are going to default. US real estate is a bad investment at this time, but also remember what are you going to be paid in? US dollars. Parity will come back between the CDN and US dollar once commodities rise and the effects of the Fed's printing of money are felt.

Right now the reason there is not massive price inflation in the USA is because the additional $1 trillion in printed money is being stored at the Fed where private banks are earning 1/4 of 1% of interest. Once they pull that money out of the Fed and start lending it watch price inflation going through the roof and the loss in purchasing power of the USA dollar.

In short any stock, bond, or investment that pays dividends in US dollars is a terrible investment.


As for RRSP contributions it depends on how much risk one is looking to expose themselves to. Royal Bank (RY) is trading about half of what it was 7 months ago, but is not exposed significantly to any losses, but more importantly the annual dividend yield is about $2 per share. Not bad for Canada's best run bank.

Those who are more willing to accept risk should put money into mining, commodities, and energy.

If I had $10k to invest this year I would be buying Potash Corp, Suncor, Talisman, Royal Bank, and Barrick Gold. The mining and energy or risky in the short run, but long term investors will see good value in these picks. It is inevitable that the global economy will recover and the supply constraints are going to be so big prices are going to reach record highs.

The best foreign investments in China are water treatment, mining, and power production. Also Hong Kong or mainland firms that specialize in production of domestic consumers goods would be a good idea long.
I wouldn't touch any tech stock or auto company right now. Apple is about 55% of its high in Sept, and with US consumers broke dont expect anyone to buy useless shit they dont need.

[sobr]

Hey Bowlcut, are those your comments or CNN's?

[Bowlcut]

Hey Bowlcut, are those your comments or CNN's?

What's that supposed to mean? CNN gives terrible advice on economics and the markets.

Bloomberg is usually better, and this article shows just how bad US housing is.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ap.iU9iqfn20&refer=us

[small_guy]

bump for what everyone is planning on doing

[faller]

I'm staying with the matress idea for a while yet :)

[DRDOOM]

I pussed out and put $10 000 into a 4.15% per year GIC. The fact I lost 28%

of my money this year makes me think violent thoughts everyday. I figured

I would take a guaranteed 4.15% over a negative 5-30% and not have to

worry about going postal.


DRDOOM

[steve1130]

I would agree with Bowlcut really good advise also just to add a TFSA - The new Canadian Tax Free Savings account. It has a 5000 a year max with no withdrawl penalty like a RRSP.

Good for all of you that can save this year it is going to be a tough go for allot of people and families these next couple of years.

[HoliTheCat]

I am gonna bump this up as I am curious as well. sobr always has good advice and bowlcuts seems sound as well.

[sobr]

I am gonna bump this up as I am curious as well. sobr always has good advice and bowlcuts seems sound as well.

Thanks Holi. The only simple answer is to continue doing what you were doing with your money over the rest of the year. This is under the always important assumption that your goals, risk tolerances, and constraints haven't changed. That said, it would be wise to consider underweighting the counter-cyclical and fixed income investments (ie:gov't bonds), and consider overweighting cyclical and infrastructure investments.