Why Investors Should Pay Attention to the Yen/Euro Cross

The strength of the Yen and US dollar have been quite remarkable especially since the US started this economic spiral. The theory behind the US currencies strength is that if they are in trouble, everyone else will go down first leaving the US as the last standing economy in the world.
Japan is not far behind [...]

Canadian Banks Ratcheting Down Mortgage Rates

Up until now, mortgage rates have been steady, even with the Bank of Canada lowering the bank rate by 1.50 percent over the last few months with lower rates expected to follow on December 9th. Banks have been holding on to their funds as write-offs relating to lower markets and US mortgage related holdings have [...]

Why Deflation is Bad For You and the Economy

While the “D” word being discussed in the media can either be a “Depression” or “Deflation, I will concentrate today on deflation and why central bankers around the world will try and do whatever they can to prevent it.
At first glance, most consumers would rejoice as lower pricing for goods and services makes everything less [...]

IncomePlus Products Provide Protection in Down Markets

You have heard the ads on radio or seen them on TV. Manulife has been promoting IncomePlus. Desjardins Life has Helios while Industrial Alliance, Standard Life, and Empire Life all have products available or soon to be available in the new year.
The availability of these products are realtively new to Canada and have been very [...]

REIT’s May Need To Cut Distributions To Conserve Cash

Canadian Real Estate Investment Trusts will start looking closely at their ability to payback mortgages and convertible debentures as they come due.
In a normal credit environment, Real Estate Investment Trusts are able to renew mortgages and go to the capital markets to roll over convertible debentures if their stock price is low. Today, many REIT’s [...]

The Big 3 On Life Support

With GM’s stock at its lowest levels since World War II and Chrysler and Ford with stock prices at their lowest levels in memory, it is evident that these companies will struggle to stay alive until the end of the year.
Some analysts have slashed their target prices to zero while current debtholders will see pennies [...]

Tax Free Savings Accounts Around The Corner

Every year, Canadians are inundated with ads for RRSP contributions in January and February as they deal with their Christmas credit card statements. This year will be no exception,  however, the ads will encompass the new Tax Free Savings Accounts which will be available January 2, 2009.
I wrote a post in the Rothenberg Capital Management [...]

Market Update – November 4, 2008

Stocks on Bay Street surged today, led by a jump in gold stocks, as traders took in a fresh batch of corporate earnings. Oil and metals prices gained and the polls opened for the U.S. presidential election. The S&P/TSX composite index gained 395.32 points to 10,116.58.
In corporate news, TSX Group Inc. is cutting 10 percent of its [...]

Shorts Make Volkswagen #1

What a week as the S & P posted its largest gain in almost 35 years and its worst month since 1938.  As short selling and naked short selling in particular is creating more volatility, I thought I would touch on something interesting where the naked short selling of shares in Volkswagen created the worlds [...]