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Financial Update November 14, 2019

Financial Update November 14, 2019

Hey everyone and welcome to this financial update. A lot has been happening in the world of finance lately from the US China Trade War to the Debt bubble.

Oh Yeah and its time to start Christmas shopping!

Before I begin I’ll throw out my usual disclaimer that this post contains affiliate links where the blog may receive a small commission on any sales from Amazon, EQ Bank, Questrade and Tangerine.

Now let’s get into it!

Amazon Black Friday 2019

Black Friday is November 29, 2019. But Amazon has already started with early Bird deals. I managed to pick up some toys for the kiddies and want to buy a Bose Wave SoundTouch IV Music System but at $750, it isn’t cheap!

I got rid of my kick ass stereo from the ’90s a few years ago and have regretted it ever since. Listening to music on my computer just isn’t the same. So I think I’ll take the plunge on the Bose Wave. Does anyone out there have it??? Let me know if its any good!

Stock Market Hits New Highs

What a difference a year makes! Last year this time the stock market was in a downward spiral.

Since late September the market has been doing well on renewed optimism of the a US-China trade truce and corporate earnings that were pretty darn good.

Personally, I doubt this market rally will continue because I don’t believe that the US and China will reach a comprehensive trade deal.

The market rallied on the belief that the US and China have come to an agreement on a baby step, Phase 1, preliminary deal. It was supposed to be signed last week, but has since been put off until December…at the earliest.

I thought traders are supposed to betting people. So I ask what are the odds of this wimpy deal being done. I think 50% at best! The full on comprehensive deal that we were supposed to get back in May, I bet less than 10%.

I hope I’ll have to eat my words, but I doubt it.

So my bet is that markets will fall because of slowing global growth and the debt balloon discussed below. Oh and I’m not alone in thinking these things.

I recently read that a lot of billionaires are bearish and have stockpiles of cash on the sidelines. These are the other billionaires…not just Warren the Worrier with his stockpile of 120 Billion in Cash!

Rising Debt Levels, Rising Bankruptcies

At the same time as the stock market hits new highs, it seems as though rising debt levels are again a concern.

Over the past few weeks more of these debt warnings have caught my eye. This year, both personal and business bankruptcies are on the rise.

The housing market has a lot to do with crazy high debt levels. After all, is there a single detached home in the Greater Toronto Area that’s under $1 million!

I used to see these homes with BMWs and other higher end cars in the yard. Now I see these same homes with Caravans and Civics. How do they do it??? DEBT!

Interest rates went up last year and we’re starting to see a spike in bankruptcies. What will happen if rates rise further or a recession hits?

Better start building a cash cushion in a savings account.

I never really made it a priority to build up an emergency fund. I always opted to invest or pay down debt. Now I’m starting to build some cash in all of my investment accounts and my EQ savings account.

Cheers! And have a great weekend everyone!

In case you’re wondering here’s where I park my money and some financial services that I use:

For my Daily banking and no-fee cash back credit card I use Tangerine.  Curious?  Check out my Tangerine vs Simplii Financial review and the Tangerine Money Back Credit Card Review.

For my Savings I use the EQ Bank Savings Plus Account. Never heard of it? Click the link to check out my EQ Bank Savings Plus Account Review.

For investing I use a combination of TD Waterhouse (for legacy investments) and Questrade (low cost stock purchases and free ETF purchases).  If you haven’t done so already, check out my Questrade Review to see why it’s the best deal around.  Get $50 in Free Trades when you signup for Questrade through this link.