Jan 092017

Chaos theory can make the world very unpredictable. Who knows what the markets will do over the next 12 months? Maybe there are some individuals who are really good at predicting the future.

But I’m not one of them. Nevertheless, it doesn’t hurt to make some predictions just for fun. 😀 Below, not in any particular order, is a list of things that I think might happen this year. It’s all pure speculation of course. 😉

  • The Dow Jones Industrial Average will rise to 20,000 points for the first time in history. It will probably happen this week.
  • The S&P 500 will only return 5% due to continuously low earnings yield.
  • The Nasdaq will see a 11% gain thanks to strong earnings from technology companies like Alphabet and eBay.
  • The S&P/TSX Composite index in Canada will gain by 8% for the year thanks to higher commodity prices.
  • The FTSE TMX Canada Universe Bond Index will return 3%. The popular iShares ETF, XBB, tracks this bond index.
  • Canada GDP grows by 0.9%
  • United States GDP grows by 2.0% helped by tax cuts and fiscal stimulus from a Trump administration.
  • The United Kingdom’s GDP grows 1.2%.
  • Germany’s GDP will crawl along at 0.3%.
  • Canada’s population will grow to 36.7 million people by the end of 2017, largely thanks to new immigrants.
  • Bank of Canada leaves the benchmark lending rate at 0.50%
  • The U.S. Federal Reserve will increase its interest rate only once by 0.25% in the last quarter of the year.
  • The Canadian dollar will weaken against the U.S. dollar to end 2017 at $0.74.
  • Conservative candidate Francois Fillon will win the 2017 presidential election in France.
  • Gold will be worth more at US $1260 by the end of the year.
  • CPI inflation in Canada will be 1.3%.
  • Inflation in the U.S. will be 1.8%.
  • Amazon Go will partner with a grocery chain like Whole Foods so customers can skip the checkout.
  • Apple will announce a new hardware product.
  • The first self-driving car model to be sold publicly will be announced, along with the year it will be available.
  • Canadian real estate prices will be 5% higher compared to 2016 thanks to continuously cheap mortgage rates.
  • Someone will try to shoot Donald Trump
  • Bitcoin will drop 15% in value this year, against the $USD.
  • A new form of cryptocurrency will try to replace bitcoin.
  • Higher interest rates in the U.S. will cause its average real estate price to fall 3%.
  • The 3 largest Canadian banks will return at least 10% to their shareholders.
  • Canadian unemployment rate will fall by 0.2% to 6.7% as Vancouver and Toronto lead the country in job creation.
  • U.S. unemployment rate will tick up from 4.7% in December 2016 to 5.2% by the end of this year.
  • Oil will end the year higher at US $56 per barrel.
  • The Netherlands will hold a referendum to leave the European Union similar to Great Britain last year.
  • A large European bank will need a bailout.

Do you have any predictions for this year? It could be anything you want. Whatever flips your pancake! 🙂 Let’s revisit these at the end of 2017.

Random Useless Fact:


Oct 052016

The following was written by staff writer, Peter.

Paying attention to your spending does not mean you should not to indulge. You fancy a 10 day trip to Italy, but your budget does not permit? We have some alternatives for you; some fresh ideas for a great vacation at home.

A holiday is meant to blow off steam. But why do we tend to go out as soon as we have a free day? Is it really necessary to go outdoors to relax? Who said you had to leave home and town to find something to relax? In fact, it is perfectly possible to find rest without having to pack.


The staycation (holiday home) is not a recent trend. In British culture, this term is simply part of the vocabulary. The English distinguish between holiday travel and holiday home: staycation (a contraction of the words ‘stay and vacation’ holidays).

Plan your staycation

You have a week’s holiday? Try to enjoy it. The goal is not to stay at home, sitting on a bench watching the hours pass.

Plan activities! How many times during the past months, did you say that you did not have time to do something? Well, now you have it! Try to remember all of these outstanding projects and get started: visit museums, play sports, see friends, enjoy a meal in a particular place. There are thousands of cool things to do and it allows you to relax and escape from your routine. Plan your trips as a vacation.

Managing your budget

Once you have defined your plans for your holidays at home, put in financial planning. In town, free activities are numerous. Look for information about holidays in the neighborhood or the surrounding villages including exhibitions, street theater, fire sale, etc. In summer, there is something for everyone!


In addition, you can relax at home and enjoy your family without blowing money off. Take for example making bracelets with your children, cooking something special… Find an activity that everyone enjoys.

Fun excursions

Who says holiday at home does not necessarily mean staying at home without moving! There is a cute town not far from home you’ve always wanted to visit? A place you want to find? It is not always necessary to pack for a vacation.

Near you, there are many amazing, fun and educational places to discover. And the advantage is that in return for this beautiful day, you can sleep in your bed. Ideal and affordable holiday right?

Enjoy a Holiday Despite the heat

What if it is very hot? America does not lack public pools, rivers, lakes and beaches. When the heat rises, look cool and spend a day with family at the water’s edge. No need to always go to the same pool, you can vary the pleasures.

Summer plans in the city

In summer, we adopt a different rhythm, we eat lighter and we enjoy activities impossible to practice in winter. This is the time for barbecues, outdoor cinemas, and picnics in the park… You can even organize a garden party or a special picnic vacation! Ask guests to bring something and present all the dishes on your beautiful garden table.

Memories of your staycation

Take pictures and videos of your staycation, it will be a beautiful memory! You can make an album, to enjoy much longer in history! And you, what are your tips for successful holidays at home?

Apr 282016

Anyone who is looking to potentially buy a house already knows how important the journey to home ownership can be. There is certainly a lot to do in the process, but when it comes to buying your own home there are also some very good points that you will want to remember before you sign the papers or even make an initial offer. When it comes to getting the home of your dreams, remember that some things are easily replaced while others you really don’t have the opportunity to change at all. The old adage is location, location, location for a reason, and if you don’t remember these key points about your potential location you could be stuck with a place that doesn’t quite meet your needs.

Know the Neighborhood

The thing about a neighborhood is that you know it is important, but you just don’t know how important it actually is until it is time to truly deal with it. A neighborhood can include multiple items ranging from crime statistics to school districts, and then there are a lot of other things which can range from political and public services to amenities and even more. The simple answer on neighborhoods is that you want to be sure you have enough to satisfy your needs, and then you also want to be sure you can get everything your future self will want as well. You may not care about schools for example, but if you think children are in your future then you had better keep an eye on school systems.

Another thing to consider is the neighborhood demographics from a financial point of view. A nice house might seem like a good thing to jump into because of the price tag. However, where will the neighborhood be down the line? If the neighborhood is young and up and coming, then you could easily invest in a home that will grow in value over the next few years. That is clearly an intelligent financial decision and you will be swimming in equity. At the same time, if your buy a house with DDProperty decision is because it’s a great location now, but due to things like unemployment rates rising, people moving away, or other factors, you could buy a house that will actually be worth less than the mortgage you paid on it in a few years if you aren’t careful.

Having a Yard

Speaking of having a yard, the fact of the matter remains that some people just want to be able to go outside. If you have pets, children, or even a hankering to do some barbequing and sunbathing then you already know how important a deck, patio, or some green grass beneath your toes can be. That being said there are more than enough individuals who will go shopping and searching for a new place and then before they know it they end up settling on something where the yard is community owned because they are in an apartment (or something like an apartment).

This might not seem like a big deal, but when you try to go out with your children and you wind up stepping in a neighbor’s dog’s feces you can become upset. You can also wind up becoming quickly irritated if you notice things like cigarette butts, trash and other remains from neighbors, or even have to deal with the other general annoyances that accompany having to share community space. As simple as these things might seem, they can certainly become awfully annoying when you are trying to get some rest and relaxation after a long days’ worth of work. This is all before you consider the value of a yard.

Have Access to What Is Important

If you happen to work at a job, then great; make sure your home is near where you work. If you and your family like to go to a specific type of area (parks, movies, shopping outlets, or etc.), then you also have to be sure your home is by those things as well. Location is important not just because of the value that a given location brings and what others see it to be from a market value point of view, but location matters because if you are going to buy a house then it might as well be close to where you spend most of your time.

People in general don’t seem to realize the true costs of being stuck behind the wheel of a vehicle. Aside from the fact that they need to waste more time in general commuting that they won’t get back, they also are at increased risk for health reasons and they face increased costs for using their vehicles as well. It might be easy to fall in love with a home that is a few miles farther than you would like it to be, but when you add up all of the costs of both time and money that a daily commute will cost you, you can see how simple it is to just say no and find a house that is closer.

Looking for a given home isn’t a chore, but you do need to be meticulous. Rather than just accepting the first thing that pops into your head as somewhat decent, make sure you take all of your options into consideration. And, while most people think solely about the home and structure itself, you also have to consider all of the outside factors of purchasing a property. Make sure you consider everything when making the transition into your first home.

Mar 262016

The following post was written by staff writer, Peter. 

How to Raise Your Rent without Losing a Tenant

Good tenants aren’t always easy to come by, and few things are as important in a rental property business as securing a great renter. For landlords, it can be a delicate balance when necessity or desire inspires you to increase the rent, as losing a tenant can mean a costly vacancy. If you’re looking for ways to increase your profits, these tips and guidelines will help you raise the rent and improve your chances of retaining a great tenant.

The Lease Stipulation

Before we get started, you need to ensure you have the right lease stipulations that will allow you to raise the rent before landing yourself in a hairy legal situation. Usually these stipulations allow you to increase the rental at lease renewal, so if you don’t have this included, you might be up the creek without a paddle. Most states have strict rules regarding rental increases, so if you’re concerned, it’s always a good idea to check with a local property management company that can give you the lowdown on all the most recent updates.

The Rising Costs

If you’re debating whether or not you should raise your rent, consider the rising costs of upkeep that will steadily increase with each passing year. Everything from insurance premiums to utilities appreciate, and you’ll have to cover those costs on your own if you don’t increase the price of your rent to reflect that.

Prepare an Explanation

Don’t expect your tenants to smile and nod when you tell them you’re increasing the price on their living situation. Before going in, consider exactly how you’ll explain the rate hike, and it can’t be “I want more money”—even if that’s the main reason. There are a variety of valid explanations for an increase: the cost of living has risen, taxes have increased, or inflation. Beyond this, property value might have skyrocketed, or you could need more money to perform improvements and repairs. You might have another reason for your rent; regardless, as long as it’s a reason that can be backed with evidence, you’re less likely to encounter pushback from your tenants.

Give Plenty of Time

You’ll need to give your renters advanced notice of your plans to increase rent prices. Not only will this give them time to decide whether or not they want to continue renting from you, but it will also provide you ample time to secure your next tenants should they choose to leave. This is also a step you must take to follow state and local regulations, so do yourself a favor and inform your tenants of your plans at least 45 days in advance.

Experiment with Advertisements

If you want to test the waters and determine whether your price increases are valid, post a listing for your property with the new price. If you receive interest, you’ll know your price is fair and you’ll have that argument on your side when it’s time to present your proposal to your current tenants. It might be likely that they already realize they’re getting a deal, so the discussion may be something they’ve expected. It will also serve as a great backup; even if your current tenants aren’t willing to pay more, you’ll have prospective tenants that will be more than willing to take their spot. You can also take a look at comparable properties, and find out what their going rate is for new tenants to give yourself a ballpark figure.


If you’re going to increase prices by a significant margin, you’ll need to ensure your property is up to par. Soften the blow of an increase in rent by offering your current tenants the option between some amenity upgrades. It could be new appliances, or maybe some landscaping in the front yard, or even updating a shower head and other hardware for an added bonus. It might not completely sell them on the idea, but upgrades will definitely serve you well as bargaining chips.

If You Lose Them

If your tenants decide to leave, there’s not much you can do. Don’t leave it to chance to find a good replacement. Instead of relying simply on a credit report, get all the details you can to make an informed decision. Sites like MySmartMove.com will provide you a credit report, alongside a criminal history notice and let you know if the potential renter has ever been evicted before.

Whether being a landlord is your full-time job or something you do for supplementary income, a variety of facets can factor into your decision to increase rent, even if you have wonderful tenants. Regardless of your relationship with your tenants, your rental property is a business; as such, it’s your prerogative to make it a profitable venture. Armed with these tips, approach your tenants in a smart, sensitive way to ensure you retain their tenancy while also increasing your bottom line.

 Posted by at 4:03 pm
Mar 072016

Canada Says Farewell to Gold

One upon a time most currencies were backed by gold. But in 1971 president Richard Nixon took the U.S. off the gold standard switching to a floating currency instead so its Central Bank can exert more influence over the currency, and other countries followed suit. Today, everyone uses fiat currency and gold is no longer relevant on the world’s financial stage.

Canada use to have more than 1,000 tons of gold in the 1960’s as part of our foreign exchange reserves. But Ottawa has long forsaken the notion that gold can be a useful diversification tool for a country’s monetary interest. For decades Canada has been slowly selling off its gold reserves, and according to the Finance Department, it only has 77 ounces of gold coins remaining today, which is worth about US $100,000. That’s nothing more than a rounding error compared to the US $80,000,000,000 of total foreign exchange reserves we have.

As Canada gets out of the gold game, others are buying more. According to the World Gold Council, central banks around the world added a net of 336 tons to their reserves in the second half of 2015, representing a 25% increase from the previous year. Russia and India have increased their holdings. And since the start of this century China has bolstered its gold reserves by 350% from 400 tons in 2000 to nearly 1,800 tons today. Even individual investors have helped take gold off the Bank of Canada’s hands. A couple years ago I blogged about buying a 1 ounce limited edition gold coin for CAD $1,389. It’s easily worth 20% more today given the current spot price of gold. 🙂

Here’s a look at the biggest holders of gold by country. (source)


Based on the chart above, we can see that the U.S. central bank holds the most gold by a wide margin. The 8,133 tons of gold held by the U.S. make up 72% of its foreign exchange reserves. The next 3 countries in the list, Germany, Italy, and France also holds more than half of their reserves in gold.

It’s interesting how other central banks seem to be holding or even increasing their gold reserves while Canada has done the exact opposite, lol. I’ll write about the possible reasoning behind these two diverging ideologies around gold in a future post, but it has to do with the nature and purpose of Foreign Exchange Reserves, which requires a rather lengthy explanation.

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