Archive for the 'Stock's World' Category

Pure speculations - Possible hidden agenda lowers dollar

After writing my post on Friday, link, I carried the fear of a possible World War III starting in the not so distant future with me all weekend long. This feeling stayed with me until I witnessed a sudden increase of traffic southbound.

Being landmass connected to the United States, Canadians are now some of the most blessed citizens on this planet. With the Canadian Looney being above par to the dollar, what used to be cheap to Canadians when the Looney is of lesser value has just become even cheaper. With this, it is reasonable for Canadians to flood to the States for their shopping needs.
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Is WWIII really coming?

After witnessing today’s stock dip in person, a train of thoughts came into my mind which explained some of the crazy things we witnessed within the last few weeks. As an amateur conspiracy theorist, I have always thought that the War on terrorism was not necessary and something must have drove the Governments into starting that war. The deaths of September Eleventh should not be revenged by declaring war on countries and causing more deaths, they should be remembered in the hearts of those who witness the scenes, at least that is what I believe. However, the question I had was, what really lead to the initial declaration of War? I honestly don’t believe that George W. Bush woke up one day and said ‘I think I am going to start a war today!’ or simply because of revenge, George W. Bush is much smarter then he pretends, and it doesn’t make sense to start a war on revenge alone. As we all know wars means burning Benjamins for the U.S. government, and this war is costing the government dearly. So my train of thoughts slowly linked the worlds’ events together in an attempt to find a list of hints that lead to the President’s decision. What I concluded was pretty shocking to me, because it explained an ere feeling I was having ever since President Bush used the words ‘World War III’ the other day, since we are witnessing similar leads. Several of the recent global political and financial events occurred  too coincidentally, the chances of all of these events happening in such a short time, in such order should be more difficult then winning a lottery ticket.

Starting in August, where most of us are first introduced to the word ‘Sub Prime’, we have witnessed a global financial fallout. Ever since, investors have forseen an upcoming recession and attempted for a way out. They were later comforted by the Federal Reserves’ interest rate cut in September and therefore upheld the investing market. However, as each companies’ quarter reports are released, even the Bank of Canada had recently admitted that the Sub Prime problem is more serious then their initial predictions.

At this point, I am not sure how much more the Feds can do. Interest Cuts are only ideal for a short term revival, like electricity for a dying heart muscle, if you shock it too many times, you might end up with an ill effect. Since nothing can really amend the ever growing domino effect caused by the Sub Prime incident, I believe the Feds have taken steps for a backup plan, another war.

War traditionally help boost the economy for the winning countries. Weapon stocks, financial stocks, gold prices, oil prices and oil related stocks would all enter into rally mode. We can easily see this effect by comparing the gasoline prices from 1999 and compare it to today’s gas prices.

By going to war, it might give the market a well needed boost. But the men and women that are sent on this journey may have to sacrifice themselves for the well being of the economy, which is also part of their home and country. One of the events that hints at a possible war is obviously President Bush’s words, as recorded in my other post World war 3? You gotta be kiddin right?, some other hints includes the recent bombing in Karachi, which most likely targeted Benazir Bhutto. The South Korea’s visit North, also seen as initial steps of reunification, which is most likely fueled by the U.S. refusal to aid in the rescue of the then captive South Koreans. There are many more hints, where all results leading back to the progressively failing U.S. economy and somehow portrayed its enemies in a negative way. Is it really wise to head for War just so recession can be delayed or prevented? I don’t have an answer to it, but I pray I don’t have to find out one day that every penny I made from the stock market was drawn from the blood and soul of some poor person who’s job was to protect their home and country.



Stocks World - How far can we drop?

For those who have been following the stocks market, I am sure you are aware of dropping trend current experienced by Dow Jones Industrial and the TSX/S&P composite index.

TSX, cumulatively dropped 142.83 points since the Market open on Monday, October 15th. There were many reasons to this sudden drop, on the list is the BoC (Bank Of Canada) maintaining its interest rates without a cut or a raise, another important drag is the neighbor’s Dow Jones.
The Dow dropped a cummulative of 180.14 points since the Market reopen on Monday. On the list that of reasons, the one that stood out for me was Bernanke stating that the sub-prime problem is having a larger impact that it should and the funds  established by banks to regain the credit lost in the sub-prime problme… So, really, only one problem, Subprime!



Money Talks - TSX’s healthy gains

Finally, on Friday, after several reports indicating a better then expected 3Qtr, TSX stop the radical decline experienced on Thursday and gain 66.42 points.

Research in Motion is now stabilized at 110. Hopefully we won’t be seeing another sudden drop in stock price.
October seems to be the historical sad month for Financial related stocks. All the major banks stocks either have negative gain or their gains are inching upwards.

The Tech sector on the other hand have a pretty nice rally so far. With Research in motion still in my personal top picks. RIM spilt  3 to 1 on August 15th, it grew 40 cdn in less then two months to today’s 110.63. If RIM’s partnership with other companies continue to grow, i.e. Network expansion in Asia, we might see the stock grow to 200 dollars(again).



Money Talks - TSX roller coaster ride.

Today was a thrill packed day for the Toronto Stock exchange. Within 15 mins during the afternoon, TSX went from +50 to -50 and back. This happened a few times until closing with a negative 46.75.

The leader for today’s downward rally was Research in Motion, which drop a total of 4.59 and closes at 109.9. At one point, RIM was down near 10 dollars, but was able to recover at most of that lost by closing time.

Imports and exports number for August are down, my guess is, with the looney raising, we’ll see these numbers drop in September as compared to August, and further more in October.

One fear I have is that we are really heading for a recession, with exports down, businesses would eventually loose money and may go bankrupt. If this happen to enough of the Canadian businesses, especially the smaller ones, we might really be heading for another recession.




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