Weekend Reading – Interest rates holding, Senators stock rising and great blogs

Earlier this week, the Bank of Canada announced they’re maintaining the overnight lending rate at 1%.  I’ve written how I feel about this holding pattern for some time.   Now it seems, economic momentum in Canada is trending higher with still no change in rates.  I’ve read “The Bank projects that private domestic demand will account for almost all of Canada’s economic growth over the projection horizon.”   Business investment is projected to remain robust.  The Bank projects the economy will grow by about 2.5% in 2012 and 2013.  The economy is expected to return to “full capacity” in the first half of 2013.  Our only drawback, why rates didn’t bump higher yet?  Oh, the usual, Mark Carney’s fear that households debt levels are too high and there are too many headwinds from too many foreign lands.  Eventually, someday, maybe by 2020 by 25 basis points, rates will rise…

…speaking about things on the rise – look no further than my Ottawa Senators playoff run.  What do you think of them sports fans?!  Nobody expected the #8-seed to do any damage to the #1-seed in the conference, but they are 🙂  Just like the economy, sports can be equally unpredictable.  The series is now tied 2-2.  It’s now a best-of-three series.  I’d like to think yelling at the TV and the New York Rangers last night helped my team’s cause, coming from 0-2 down after the first period to win the game 3-2 in overtime, but I know better.  Then again, all the shouting did feel pretty good!
The next big game is on Saturday night, Game # 5 in NYC.  I hope the boys are ready.  Like crushing household and mortgage debt for most of us, the Ottawa Senators need all the help they can get.
Here’s a long list of outstanding blogs to check out.  Have a happy and healthy weekend and don’t forget – GO SENS!!!!
Boomer & Echo shared 10 fees that are worth the money.
Canadian Couch Potato shared Claymore’s final report card.
Dividend Monk said CNR is fair value at $65.  Monk said “Overall, I view Canadian National Railway as a fundamentally solid, albeit cyclical, business. The revenue growth is consistent, free cash flow is fairly strong, and the balance sheet is healthy. Railways have natural moats surrounding their businesses.”  Also, check out Matt’s essential guide for dividend paying stocks here.
Retire Happy Blog discussed travelling in retirement.
Balance Junkie told us 5 things Tim Tebow can teach us about stock investing.  Fun post!
BankNerd told us that CIBC launched their iPad mobile banking app.  If you don’t have an iPad, well, you don’t have an iPad (like me).
Invest It Wisely shared 3 important milestones on your journey to financial freedom.  Kevin said “Does the fact that I quit my job after 7 years mean that I was wasting my time there? No. I learned a heck of a lot, and that is in fact how I got started in the mobile business.”  Everything is an experience, for sure Kevin.
Passive Income Earner wrote about how to manage your employee stocks.
Michael James on Money wrote about adjusting investment portfolios based on investing behaviour.  He’s got a point here – since after taxes and fees or maybe before these things – behaviour is another evil pillar of investing.
Beating The Index provided an overview of Viking, an established oil play for those inclined.
Preet Banerjee said Warren Buffett and Gordon Gekko both recommend index investing.  Man, I haven’t watched the movie Wall Street in a loooong time.
Dividend Guy Blog said dividend yield should not matter for dividend investors.  My answer to this is, yes and no.  Dividend yield matters, but you need to be wary of dividend yields over 6%….uh, like TransAlta.
Dividend Ninja said dividend cuts can be a good thing.  I agree with Ninja, and it was a very well written post with some good examples.
Financial Highway provided some reminders about investing in bonds.
Canadian Capitalist said owning too much real estate may not be prudent.   Agreed.  Then again, too much of many things aren’t good.  He said “It may be tempting to chase real estate riches after extrapolating recent housing market returns but putting too many eggs in one basket is hardly ever a good idea.”

Mark Seed is the founder, editor and owner of My Own Advisor. As my own financial advisor, I've grown our portfolio from $100,000 to well over $500,000. Our next big goal is to own a $1 million investment portfolio for an early retirement. Come follow my saving and investing journey by subscribing to my site. Delivered by Subscribe Here to My Own Advisor

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