Recession, Resmession. We're already in it...Been through this before.
Payout ratio in Q1 was 50%.
Big buffer for current dividend level.
Kasking and me are bet-takers..... we look at the odds, how this thing plays out.
Odds of recession in Canada:
100% likely
Severity of recession in Canada:
50% 6mo
25% 12mo
15% 18mo
10% 24mo
See the above, invest your capital accordingly. Everything in flux.
1 in 10 chance things get really bad. No need to hide in the woodland bunker just yet.
What we know: Households countrywide carrying mega debt while facing severe inflation
Question becomes: How long until household balance sheets are repaired?
How long before my dentist recommends the replacement of (gold) teeth knocked out by clients who remain overweight Bank stocks after ignoring recommendations to underweight banks ?
Shoot!!
Tough thing about these selloffs:
If you're pre-retiree, you can ride it out.
If you're new retiree, you're in trouble.
If you're older retiree, you don't give a hoot!!
Kasking told me that the scrappy Tampa Bay Rays have got a shot at beating the favoured Houston Astros tonight. Now that's real news!
Let's run that by his Trade Desk before the game starts.