Bank regulator raises mortgage stress test level, making it harder to qualify

[Kobe]

I just want to add one more thing about the Stock market -

The statistics show that 52% of adults under the age of 30 are living at home.

This itself will have questions you can ask yourself?

1. Why? - Because cost of living is so expensive, so even though they have low paying jobs they can't afford a normal life living alone but want to earn more money.
2. Where does the money they earn go? - Well everyone knows if you invest in the stock market it will always have a 6-8% ROI which beats inflation.

So the logic is, I don't make that much money so I'm going to make my money work for me and buy ETF's (Your argument was well buy and it will be worth more after the recession)

ETF's are now NOT purchased because of their performance but because of the belief they will continue to increase at 6-8% every year.

Good example of how irrational the markets are right.
Is it a massive bubble? Or is the valuation good?

Since March 20th, 2020 the Dow jones was at roughly 18,210

As of April 8th, 2021 it's at 33,495

An increase of 15,285 Base points.

a gain of... Drumroll.. 83.54%

Over 388 days...


» Click image for larger version

Be cautious with what the future holds in store. Not financial advice but something to think about
Amazon increased it's profits by 84.08% in 2020 from 2019.
Apple increase it's profits by 3.9% in 2020 from 2019.

Apple stock is up 140% Since March 20th, 2020
Amazon Stock is up 105% Since March 20th, 2020 (It was higher not at it's peak)

Not saying either are bad companies, but where does the actual valuation of ETF's come from now?

How about all the smaller cap companies though?


It took the Dow Jones from 1897 to July 2013 to go from 15 to 15,285 Which is over 100 years.

Almost doubled in the last 388 days when we had lockdowns, it's something to consider and think about in the future.

[Xtrema]

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Say a home is for sale for $250,000 - You need a mortgage and say you pay $900/month for the mortgage you purchase the home as in investment and rent it out for $1,200/month expecting the value of it to increase by year (Like it's done like 40-50years)

You can not find a renter for $1200/month but then find out for $1000/month

Your profit margin is $200/month + Inflation of your asset (you assume the price of your home will continue to increase) Which we can't properly know until you sell your home, how much you earned on it.

Bah, fundamentals are so 2019.

FYI, a lot of mortgages in China costs $3K/month and can only fetch $700/month rent if they are lucky. Nobody cares.

The same type of money is hitting Canada now.

[Kobe]

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Bah, fundamentals are so 2019.

FYI, a lot of mortgages in China costs $3K/month and can only fetch $700/month rent if they are lucky. Nobody cares.

The same type of money is hitting Canada now.

It hit Canada a long time ago, mostly Vancouver.

But you're right nobody cares, nobody gives a shit about the problems we are facing because they don't want to hear the truth, they will make arguments to justify the markets because the markets benefit them. Or we will go and spend time arguing about covid or some other non-sense like a lockdowns to avoid looking at the big picture.

Nobody believes a depression can happen again, because history doesn't repeat itself.

"This time is different"

But if you watch the video explaining long-term debt cycles and then click on this link: https://tradingeconomics.com/canada/interest-rate

Canada: 0.25%
China: 3.85% - https://tradingeconomics.com/china/interest-rate

One country can still reduce interest rates the other can't, we are to busy printing from ETF's and this is where Psychology into the markets comes into place. Sentiment.

And after


"OMG HOW DID WE NOT SEE THIS COMING THEY LIED TO US"

EDIT: I bought some shares of Gamestop at $100 each and it sure as fuck isn't because I like the stock and think it's undervalued. Either goes to the moon or $5, doesn't matter it's for the underlying issues of the short-sellers. I consider it money lost but it's a great troll against those hedgefunds.

[Disoblige]

Roaring 20s.
Dirty 30s.

Time accordingly.

[dirtsniffer]

In my post high school years I've gone through a financial crisis, oil price collapse, a global pandemic with another collapse in oil price, if these are the good years then I am completely fucked.

Regarding etfs, their valuation is based on the underlying holdings. I don't understand a way etfs could collapse without having the assets collapse as well.

[Buster]

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In my post high school years I've gone through a financial crisis, oil price collapse, a global pandemic with another collapse in oil price, if these are the good years then I am completely fucked.

Regarding etfs, their valuation is based on the underlying holdings. I don't understand a way etfs could collapse without having the assets collapse as well.

market crash

[Xtrema]

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One country can still reduce interest rates the other can't, we are to busy printing from ETF's and this is where Psychology into the markets comes into place. Sentiment.

Not sure if China is repeating Japan's asset bubble of 90s.


Can they really afford to lower interest rates?

Especially Marxism is making a huge come back among the young that got left behind.
https://www.economist.com/china/2021...viral-in-china

[Kobe]

Wow i had no idea, never looked into it.

But ya I see major changes ahead of us (even without knowing china is going anti-capitalist) more and more.

If it's better or worse, I have no idea.