Its not fun to see the TSX going under the so valuable mark of 15 000 points. And its doing so for a mix of reason, economy going to well, pot stocks drooping in value, interest rate being hike in the US and now, in Canada... The economy is just going too well, and in result, central bank increase their interest rates, but markets don't like it. Its quite strange, I think the first time ever that I am going through a stock crash because the economy is doing too well. Anyway, it has bad consequences for the stock markets all around the world. Problems between US and China are not helping either.
Anyhow, for now, I am doing ok. My non-registered portfolio closed today session at $170 033.38, my TFSA portfolio at $75 295.72, and RRSP portfolio at $37 632.75. I had lost in value, but my dividend income remain the same. Got to focus on the bright side. I am still on profit with many of my stocks, and its the case of the vast majority of my stocks. If you are in for the long run, focus exactly on that, the long run. Its not the moment to sell any of your stocks. Its not pleasant to see your assets going down, but its part of the game.
2018 was supposed to be my year of glory, the year when I was going to hit on the $300 000 magic net worth. During that time, if you want to get a good laugh, CIBC is offering me a credit card transfer at 1% interest and BMO Mastercard wants to increase my credit limit and want me to proceed with a credit card transfer at 0%. I accept the offer of BMO to increase my credit card limit. BMO Bank of Montreal and CIBC (but I like CIBC anyway) are real gangsters who are trying to make more money on the back of your really precious Dividend Girl.
This is not a fun moment, but now is the perfect time to focus on your budget, see where you can save money, cut your spending and invest all that good money over the TSX to make sure my baby hit on back the 16 000 points. But let's begin with a 15 000 points please.
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"This is not a fun moment, but now is the perfect time to focus on your budget, see where you can save money, cut your spending and invest all that good money over the TSX"
Or, you know, not.. since the bank of Canada is raising interest rates and 2019 is going to be a recession in Canada.
16500 was the top of the TSX and it isn't going to be back there in years. The Canadian dollar is dropping and a 2000 point drop in the TSX in three months is not a bullish sign, especially with NAFTA uncertainty BEHIND us.
The only thing you should put in the TSX is a fork. It's done. That was the top.
I don't agree with you. Bank of Canada has to raise its prime rate exactly to protect our economy, because it's all going so well right now. And yes, it's been announced, more raises to come. Currently, there's a mix of factors on why the TSX is going down, but it's not because our economy is not doing well. In result, the TSX offers good stocks at a bargain price, its time to invest.
A great economy causes inflation, and the bank raises rates to lower inflation growth.
https://www.economicshelp.org/macroeconomics/monetary-policy/effect-raising-interest-rates/
For the stock market to go up, the economy must continually grow. The stock market is a predictor of the GDP growth
A recession is a slow down in the growth of the economy, which is defined as a lower GDP growth for two consecutive quarters.
The bank of Canada- or the Fed in the US - does not raise rates to help or protect the economy, they do it to control inflation by causing a slow down of the growth economy. That is immediately reflected in the stock market.
All the past recessions were caused by the bank raising rates. They basically raise the rates until the market crashes, and then they lower them again. They are not shy about it https://www.reuters.com/article/us-funds-doubleline-idUSKBN16E2X4
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