Author Topic: CAD strategy with a side of Retirement.  (Read 843 times)

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Gravlore

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CAD strategy with a side of Retirement.
« on: January 28, 2015, 04:44:38 PM »
What do others here that follow finance think about the complete kick to the nuts the Canadian dollar is taking?


My thoughts are somewhat contrary to the mainstream consensus of what to do in this environment. Most economic advice seems to be that stocks have a better return than debt repayment and therefore is preferred.


While this seems to be true in a stable or increasing (value) currency environment, it seems to be false in a declining one. There are variables in this thought since a portfolio that has high American exposure seems to be gaining in relative value and that is another story. I am coming from a view of a Canadian that has debt and is also a consumer. To me when the dollar is worth much less in the amount I can purchase, this seems to be the time to pay the debt and not buy anything extra (the opposite of Poloz and his push for inflation). This is a real opportunity to roll those savings (less interest) into the debt as a whole and not use it to purchase a price inflated item. I suppose if our wages rose in step with the currencies loss in purchasing power that would be different and would be what is considered a "stable" currency environment.




Long story short for me is do the opposite of whatever the BOC wants me to do. I hate manipulation and also hate the arbituary 2% inflation target. Why that is the number and not 1% or 2.5% or whatever seems to be a load of bunk as well.


As far as retirement goes I will not put any money whatsoever into a government vehicle that one day may change the rules and high jack my money under the guise of national security or some other made up BS they caused. Also, I believe that a massive currency devaluation is coming within the next 5-10 years in order to pay the unfunded liabilities/pension promises. Oh sure, you will get your $850 a month in government pensions, but what you dont know (or perhaps you do) is that it will not buy jack squat.


Someone please poke holes in my thinking. I really do welcome it.

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Re: CAD strategy with a side of Retirement.
« Reply #1 on: January 28, 2015, 06:57:49 PM »
 In full agreement Grav, I was trying to explain that very thing to a couple of guys this morning. The price of gas was the starter, wow we can buy gas cheaper was the comment that got me rolling. So when our dollar drops 10 cents and the price of fuel goes down then jumps overnight again, and the price of cattle goes through the roof, who are we kidding? Our dollar is worth toilet paper( though not very absorbant or soft)
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