And as for the stock market?

[hagbard]

I suspect as the housing market tanks, so will the stock market. Any ideas of good places to park money? Gold? Art? Big screen TVs? :lol:

[controlyar]

I would recommend investing in anything that is the opposite of which you recommend.

[Bullseye]

You still waiting for a drop in the Canadian housing market, Hagbard? How many years has it been now since you sold your home to rent and wait for the coming collapse so you could buy back in and make a killing? How much has your old house gone up in value since?

And how much have people who have done the same with the stock market missed out on in recent years?

I know a few people who are sideline-sitters, they are wishing so hard right now for a big crash, but willing it to happen is a hopeless endeavour.

Capital doesn't just vanish en masse, it merely flees, flitting from place to place. If you are truly paranoid and distrustful of both the housing and stock markets, CDIC insured term investments are really your only option, I think.

[controlyar]

You still waiting for a drop in the Canadian housing market, Hagbard? How many years has it been now since you sold your home to rent and wait for the coming collapse so you could buy back in and make a killing? How much has your old house gone up in value since?

And how much have people who have done the same with the stock market missed out on in recent years?

I know a few people who are sideline-sitters, they are wishing so hard right now for a big crash, but willing it to happen is a hopeless endeavour.

Capital doesn't just vanish en masse, it merely flees, flitting from place to place. If you are truly paranoid and distrustful of both the housing and stock markets, CDIC insured term investments are really your only option, I think.

You gave the professional version of the reasoning behind my post. :lol:

[konfusion666]

Still holding onto your Nortel stock, hagbard?

[hagbard]

You still waiting for a drop in the Canadian housing market, Hagbard? How many years has it been now since you sold your home to rent and wait for the coming collapse so you could buy back in and make a killing? How much has your old house gone up in value since?

And how much have people who have done the same with the stock market missed out on in recent years?

I know a few people who are sideline-sitters, they are wishing so hard right now for a big crash, but willing it to happen is a hopeless endeavour.

Capital doesn't just vanish en masse, it merely flees, flitting from place to place. If you are truly paranoid and distrustful of both the housing and stock markets, CDIC insured term investments are really your only option, I think.

Okay, when did you start singing a different tune than you were back in September?

http://www.redflagdeals.com/forums/showthread.php?t=332990&page=3&highlight=bubble

[pitz]

I suspect as the housing market tanks, so will the stock market. Any ideas of good places to park money? Gold? Art? Big screen TVs? :lol:

A good chunk of Canada's market is resources, so if gold goes up significantly, the TSX will benefit. Energy stocks have gone nowhere in the past year, despite energy prices being similar this year as they were last year (average for oil last year was around $60, and today we are at $63).

Personally I'd feel pretty comfortable breaking up your loot into chunks of $50, and investing $50/day or $50/week into a good TSX index fund. Don't see why the stock market would tank at all. If anything, the speculative money that was in housing would move to stocks, and a lot of boomers might be coming to the realization that they can't retire on home equity alone.

[Bullseye]

Okay, when did you start singing a different tune than you were back in September?

http://www.redflagdeals.com/forums/showthread.php?t=332990&page=3&highlight=bubble

I don't think that's a different tune. Just because I don't think the market is going to go anywhere in the next couple years doesn't mean I'm selling my house and pulling everything out of it. I've done some profit taking and reduced my exposure to equities, but I would never go lower than 50%. And I would never sell my family home to rent and hope for a crash.

[steve66]

I don't think that's a different tune. Just because I don't think the market is going to go anywhere in the next couple years doesn't mean I'm selling my house and pulling everything out of it. I've done some profit taking and reduced my exposure to equities, but I would never go lower than 50%. And I would never sell my family home to rent and hope for a crash.


everything goes in cycles, the market in any sector is like a roller coaster, but before we present a dooms day scenario , lets look at the fact that we are on a message board talking , UNLIKE in any point in history, we all are seeing the impact of globalization.........I personally like canada for housing and stocks...(maybe pride talking) Theres a lot of good companies out there that are getting irrationally beat down.........but , market negativity or no one knowing keeps volume down....(anyways these arent stock picks, against the rules) Just a couple of examples to back what I say......theres always room to grow.

[climacus]

Don't see why the stock market would tank at all. If anything, the speculative money that was in housing would move to stocks, and a lot of boomers might be coming to the realization that they can't retire on home equity alone.

When consumer spending stalls because Joe Blow realizes that the housing gravy train is over, the stock market will get hit. I agree that most of the money will pour back into equity in a hurry once the dust settles, but I think it's silly to assume that there will be no disruption to the stock market at large.

[pitz]

When consumer spending stalls because Joe Blow realizes that the housing gravy train is over, the stock market will get hit. I agree that most of the money will pour back into equity in a hurry once the dust settles, but I think it's silly to assume that there will be no disruption to the stock market at large.

So if Joe Baby Boomer stops wasting his money and starts investing it in the market, you feel this will drive down stock prices?

I guess it really all depends on what 'stock market' you are in. If you are in the TSX, you basically only have exposure to 3 sectors -- Banking, Oils, and Mining, and practically no exposure to anything else. It is somewhat frustrating when columnists refer to the 'stock market' as one ubiquituous thing, as opposed to being made up of different constituents, some of whom will perform well during economic stress, and some that will perform poorly.

Basically theres always money to be made in some asset class or another. Stocks have been quite cheap (and still aren't very expensive) for the past few years. But they are starting to look increasingly more expensive, albeit still with very healthy earnings.