RE:RE:So undervalued .Let me rephrase # 2. How Btr can trade less than 25 cents and be a sell?
billsfortunes wrote: 1. Can someone good at math explain to me how Inflation is 9% yet everything costs 40% more (Twitter post)?
2. How Btr can trade at less than 40 cents and be a sell?
I got a call last week from a distraught acquaintance who’s come to the conclusion he has to sell his house because simply put, he can’t afford the increase in mortgage payments. His 5 yr fixed mortgage taken out in November 2017 at 2.64% is now up for renewal at just over 5%, which essentially doubles his payments.
People are suddenly aware of the impact of rising interest rates or the dramatic fall in crypto or their tech stocks.
The changes people are being forced to deal with are incredible. For example, on March 1st you could still get a 5 year variable rate at 0.9% but now the rate has increased to 4.75%. Over half of Canadians have reached the point where their monthly payments don’t even cover the increased interest cost, so they’re not paying down any principal at all.
Numerous polls have found that over half of Canadians are worried about making ends meet. Deloitte released a poll last week that found 76% of us have cut back spending in other areas because of rising food prices.
Canadians suffered the biggest drop in their personal net worth on record in the 2nd quarter. Down $900 billion with RBC forecasting the losses will grow to $1.6 trillion by June of next year.
We have to admit I we are not always sure of what it takes to get people’s attention, but there is no shortage of things going on that directly impact our financial lives whether we’re paying attention or not.
To borrow the old JP Morgan line - you can ignore finance and economics, the problem is that they won’t ignore you.
But the stakes are higher today than at any time in the last 50 years – both personally and collectively. As we've been saying, if we thought 2022 was chaotic, volatile, and dangerous to our financial health – 2023 will be worse. And we suspect in ways that are difficult to imagine. And hasn’t that been the case with so much of what Canadians witnessed this year.
Like the 1500% jump in the bank rate in 7 months, gasoline hit over $2.42 a liter on the West Coast, a diesel shortage in the US northeast that threatens shortages this winter, the collapse of the crypto market and NFTs, while former tech high flyers fell 70, 80 even 90%.
In conclusion, we suggest you dip into undervalued mining plays. As Canadian tax loss season has shifted into gear, opportunities abound.
Bonterra Resources is one company all our subs should revisit for the sake of cost averaging.
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