and so the world continues....

Well - President Obama visited Ottawa this week - and did more to promote Canada in 5 short hours than Stephen Harper and the Conservatives have done in the past year. He said- i love this country - and bought a beavertail (for those of you who dont know - its not an actual tail...its a pastry deep fried and topped with toppings like butter and cinnamon sugar or garlic and cheese).
Interest rates have dropped since i las posted -prime is at 3 per cent
5 year money is as low as 3.99 - the lowest i have seen in 30 years in the business.
The gloom and doom scenario continues to dominate the news - so lets think about this logically...if there is such a thing as logic.
If all property values drop - people will continue to pay their mortgages and their homes will be a place to live instead of a get rich quick opportunity. (It should have been treated as a place to live from day one).
The stock market values have plummeted and people see their RRSP values dropping by 50 per cent or more - especially the Canadian Banks (as i write this Bank of Montreal is paying an 11 per cent dividend). Are we in for doomsday ?
i dont think so...will it be a tough few years ?...absolutely
So why are the banks dropping - i would suggest its the American Investors selling shares to raise cash - and since there are 10 times the people in the USA they have more control over our stock market as their Mutual funds invest in Canadian Banks - albeit in small amounts - but when everyone is running from financials - the baby tends to get thrown out with the bath water.
I have been a huge proponent of gold and gold stockst moving up..and we are seeing that happen
and now i am buying Canadian banks in the belief that they will flourish over the next 3 years - and i will receive a great divident until it turns around
I also am of the mind- i dont care about the underlying share value as long as they keep paying me the dividends - i dont need the capital but i do like the cashflow from dividends
in any event - time to watch the oscars. ...let me know if you have questions
Refinance - to payoff debt and stay as liquid as possible - but dont forget the addage - buy when everyone else is selling
greygoose out.