Mainstream Media, Economists Mock "Cash Hoarding" Canadian 'Savers'

Tyler Durden's picture

With grocery prices surging, amid the collapsing currency, the powers that be appear to have turned to their mainstream media puppets to initiate the 'mocking' propaganda of the banks against an increasingly fearful Canadian citizenry (especialy those under 35) who are hoarding cash.

 

With the Canadian people losing faith in their government's ability to save their corner of the world as their currency loses value by the day, it is perhaps unsurprising that the always supportive of the status quo media comes out with a somewhat mocking "cash hoaring on the sidelines is foolish" puff piece... (via Financial Post)

 

Cash positions have been rising since the 2008 recessions, so the recent increase comes on top of what Canadians were already sitting on in their portfolios.

The result is the largest hoarding of cash in Canadian history.

 

So, FinancialPost explains, if you are holding on to that cash out of fear rather than need, you should consider jumping back in and benefiting from what is essentially a 20 per cent discount on stock prices.

But what if you need cash right now, because you’ve just hit your retirement years, or you need to liquidate some of your registered education savings plans because your child will soon be starting a university or college program?

The short answer is that you should have planned ahead: You want to have a certain amount of cash in your portfolio to meet more immediate needs so you’re not cashing out your investments at the bottom of the market.

It appears Canadians are ignoring the "sage" advice of CIBC World Markets: "While holding cash can guard against short-term spikes in volatility, it’s certainly a long-term drag on portfolio returns," and moving to cash rather than have their capital destroyed by unwinding carry trades and deflating bubbles blown by their central bank overlords...

 

CIBC World Markets economists Benjamin Tal and Royce Mendes note that while they don't have a crystal ball for when markets will recover, but says that by the time they do,  “it will be way too late” for Canadians on the sidelines to take advantage, because most recoveries happen in the early stages.

*  *  *

There - do you get the message Canadians - pile all that cash into the stock market - fear is for losers.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
_ConanTheLibertarian_'s picture

The more they recommend not to hoard cash, the more the people will.

Durrmockracy's picture
Durrmockracy (not verified) _ConanTheLibertarian_ Jan 27, 2016 5:56 PM

I'm mocking them too!

Gold + Silver + Bitcoin for the win!

RealistDuJour's picture

Buy Teh Goldz at: $1415 (beginning of 2011); $1598 (2012); $1650 (2013); $1238 (2014); $1192 (2015); $1077 (2016).

I'd do silver as well, but that's too much typing and even more depressing than teh goldz.  FTW indeed... BAHAHAHAHAHAHAHA

Durrmockracy's picture
Durrmockracy (not verified) RealistDuJour Jan 27, 2016 6:09 PM

eH!  Don't steal muh schtick!  I'm not your buddy guy!

ufos8mycow's picture

You guys and your gold,silver and Bitcoins are funny. I'm raising Gerbils. And when TSHTF you will be trading me your stuff for my Gerbil meat. I'm gonna be Gerbil rich.

stacking12321's picture

bitcoins are too valuable to trade for gerbils, but i'll give you a dogecoin for one.

logicalman's picture

Would gerbils make for small change when you are spending pigs?

 

Paveway IV's picture

Gerbil replies up for forty-five minutes and no gerbil jokes yet?

WTF have you bastards done with Knukles??

SilverDOG's picture

Canadian currency(if survives) and economy will recover long before U Ass Ass A.

Canada has all resources needed for self reliance, although Canada is extremely Queentocracy dependent. Which has a multitude of side effects.

The LAST currency to fall, will have ZERO downward resistance.

Seemingly the currency pedestal is singularly occupied by a brilliant star;
soon supernaova.

Canadian Made's picture

Gold in CDN , 2014, up 7.0% 2015 up 7.7% , since 2001, average 9.9% /year. Go fuck yourself

Durrmockracy's picture
Durrmockracy (not verified) Canadian Made Jan 27, 2016 6:22 PM

it's all relative.. literally, when your denominator is a spastic floating point.

nink's picture

Banks are getting weird here.  It just took me 9 days to clear a bank cheque at TD and the BMO bank just tried to close my 11 year olds bank account and steal his $120 for inactivity....

 

 

FreeMoney's picture

Its interesting that the article calls "cash hoarding"  rather than look at their own chart and see a clear loss of confidence in the markets by ALL AGE GROUPS.

 

I think everyone has that feeling like the pendulum must swing the other way on volitility.  Risk premiums have never been so low for so long.  It can not last.  ( yes I know, this all the work of the central banks printing. )

SilverDOG's picture

Banks are begging and stealing anything not tied down exactly as 2008.

The time has come to max cards of BofA(or other) with purchases or transfers.

BofA is a wingless canary that has fallen into a coal mine.

Max, default, and Kill it.

JuliaS's picture

If you're going to comment on gold in relation to a Canadian article, you might as well post gold prices in CAD. 5 years ago around this time it was $1400. Now it's at $1600.

Gold takes exchange rate guessing out of the equation as it is traded against all currencies and acts like a weighted value basket.

If you know which direction the wind will blow next, you may extract profit by swapping fiat for fiat. If you don't, PM's are your friend for value preservation.

Canadian Renegade's picture

Realistdujour this is an article on Canadian savers. Maybe you should look at a ten year chart of gold price in CAD. Looks like a permanently high plateau to me.

http://goldprice.org/charts/history/gold_10_year_o_cad.png

FlacoGee's picture

They would have made a lot more money by converting all of the CAD$ weekly into USD$ than buying gold.

They would have been up huge... all the way from parity to the current price.

Bonus:   Not having to deal with gold sellers, storage, etc...  and merely clicking a button on their online banking to move their CAD$ into their USD$ account...  which is available in all Canadian banks.

Gold, like everything in this world, is just a trade... don't fall in love.

2500saturdays's picture

CDN - USD - CDN cost you about 4 %

change it back and forth enough times it be gone.

pitz's picture

Not if you have half a brain and shop around for currency brokerage. 

Au_Ag_CuPbCu's picture

Exactly, why in the hell would you hoard a collasping currancy?

Durrmockracy's picture
Durrmockracy (not verified) Au_Ag_CuPbCu Jan 27, 2016 6:12 PM

normalcy bias?  sentimentalism?

logicalman's picture

When you have cash and the interac thing goes to shit, you end up at the front of the queue.

Won't last forever, but having some paper (plastic in Canada) could give you a buffer for a few hours, maybe a day.

If the system doesn't come back on line once it's been unplugged and plugged back in, it's every man for himself and those he cares about.

Hopefully, whatever plan you have is a good one.

On a long enough timeline..............

Canadian Dirtlump's picture

I heard this on the radio and scratched my head. To me hoarding cash is keeping it in a safe. This "hoarding" seems to mean "not putting the cash you would otherwise invest into the casino into the casino and putting it in savings."

I'm in Alberta, the worst hit. I see my kids every second evening, and we always do something like go to the mall or arcade or something. In my firsthand experience in calgary, there has been little abatement in people out doing things.

By this I mean, this "cash hoarding" concept seems to equate to people being "scared." I hope I'm wrong, but for the most part, I don't think most people get it. Sure some, maybe more, but not most. The majority are still drones out buying shit they don't need with money they don't have.

OldPhart's picture

I hope you're prepping for a bail-in...at least, keep some cash out of the bank for 'oh-shit' purposes.

Canadian Dirtlump's picture

I don't really keep anything in the bank. A small bit of RRSP that I have been too lazy to cash out. I mostly deal in phyzz.

Iknowstuff's picture

Always maintain a diverse portfoliio. The more diverse the better. Remember performance returns on one investment may be losses on another. For example loss on your silver may be offset by gains on your lead. Investment in lead, silver, gold, and fiat paper are all wise for diffrent reasons. Investment in education only helps to diversy further. Remeber "Knowledge is power."

Canadian Dirtlump's picture

I'm part of a holding company that has some paper and a dozen pieces of heavy equipment so I'm ok there. I'll have the lead covered shortly too. Traditional "be in for the long haul, diversify" I think was good advice and still may be. This hunk of shit ponzi casino doesn't deserve my money though.

 

Also, at this point "valuations" in most assets to me are perverse. Can they wash silver out any more than it has been for physical? Not by much.

FIAT CON's picture

I'm not tring to pick on you or anyone else but we all need to properly use the terms correctly ie. Currrency vs Money. wW need to do this to help others to understand the difference between the two. Which may be the most important lesson in life.

I know I sometimes slip myself.

 

OldPhart's picture

Let me rephrase.  The loss on lead may be offset by the non-loss of silver, gold and fiat paper.

Toonces McGraw's picture

I love hoarding! I hoard cash in a safe for bail ins or "electrical issues". I hoard gold and silver. Hell i even hoard beef and chicken, two freezers always full. 303 shells, 410, .22, birdshot, buckshot, slugs all hoarded. Winter clothes, boots, toilet paper. Hoard! Hoard! Hoard!. Need more hoard!

OldPhart's picture

I'm not hoarding. (looking over shoulder) I've only got 165 rolls of toilet paper.

FX223's picture

Yeah I hoard cash...stack that toilet paper till I get a chance to get to my coin dealer and turn the dirty paper into shiny silver and gold.  So go ahead, mock me for hoarding and mock me for stupid barbaric pet rocks.  We'll see who laughs last when extended bank holiday and capital controls make it so you can't even buy a cup of coffee.

 

Fuck heads those that don't even have a buck fifty in their pocket.  I am a hoarder and there are worse things one could be accused of...like, naive enough to hand over all your money for the nice men in suits to keep safe for you.

Go fuck off!

 

 

CHoward's picture

The absolutely BEST advice is to keep your cash OUT of the markets and banks!

khnum's picture

at the moment yes were getting close in the western world to where they loot citizens directly

xrxs's picture

I rather have Au than loonies.

Durrmockracy's picture
Durrmockracy (not verified) xrxs Jan 27, 2016 6:01 PM

The 1967 Canadian silver goose dollar is beautiful... and Canada's last real dollar too.

Dragon HAwk's picture

Damn you would almost think  people were starting to smell a banking Collapse..

  Hey Canada, there is some shiny stuff, that trades south of the  Border, better than loonies..

Durrmockracy's picture
Durrmockracy (not verified) Dragon HAwk Jan 27, 2016 6:08 PM

You know I've even begun to keep Canadian pre-1999 quarters and dimes too.  They are 99.9% nickel and right now nickel is historically cheap compared to silver (about 1/52 now).  I can picture a situation where silver evaporates from public view and people are forced into the next best things... nickel and copper.

cpnscarlet's picture

Exsqueeze me, but with what's happening to the Looney, isn't hoarding $CDN the last thing you want to do? BUY the flippin Maples, idiots! You have the best damn bullion coins minted by a gov't on the entire planet, and you want to hoard paper??? These young kids are truly ignorant.

In.Sip.ient's picture

Are you paying attention to the BRICs/OPEC story???

 

These guys are just about to see the light and cut

oil production.  Can you say $100/bbl oil?

Can you say "loony at parity"???

 

Now you see the forest for the trees.

 

Abbie Normal's picture

Okay, you cut oil production first...I will follow after the price has gone up.  See how that works?

You are lost in the forest and all of the trees look alike.

oddjob's picture

Buying Gold Maples @ $1500/oz with the $CAD at par made it $150 cheaper than you can buy it today.

SeekingNuNormal's picture

The Looney ALREADY got slammed.  Now is the time to buy Looney, not sell.

MASTER OF UNIVERSE's picture

Now look at Corporate CANADA to see how much they are hoarding before anyone decides the fear factor of the great unwashed.

 

Corporate hoarding is exponentially higher than the average CANUCK.

Kayman's picture

Classic case of figures lie and liars figure.

Per capita cash is $2100.  Per capita debt, public and private, is approaching C$100,000.

Spend Canadians, spend while you can, they ain't making__________anymore.

skbull44's picture

The Canadian mainstream media obviously got its walking orders. Here is a similar article from the CBC: http://www.cbc.ca/news/business/cash-investors-cibc-1.3419271?__vfz=prof....

Of course, one of my comments ("...Canadans risk losing out on the rebound in stocks because they're too risk averse..." Or, people have awoken to the fact that the markets are a rigged and manipulated casino serving the financial rentiers, such as Tal.) was disallowed by the CBC 'moderators'...typical of our 'public' news service.

htpp://olduvai.ca

FX223's picture

Yes this issue is all over the place right now because the Harper helicopter money didn't do the trick and now they have to find other ways to flush out all that cash.

 

Say it again and again...keep it in gold and silver and it's harder to spend so you are forced to think twice before selling PMs to buy a new 4k TV you don't need...so not only best currency performance of 21st century as per earlier article on ZH but effective against mindless spending.

 

Good luck to all who let moneychangers keep their money safe.

FIAT CON's picture

Support your local miner and short the dollar at the same time. Exchange paper and ink for PM's. Something wheras your PP will be protected not given up.

Deus Irate's picture

The Financial Post aka Post(hole) Media ARE the CBC. You know, the source for most of the "panic". Easier to control people when they are frightened. Trouble is the scaremongering ain't working. We have a golden Dauphin riding a neutered unicorn for PM and a little fire-plug Ukie urinalist/bimbo as chief happiness-guide. The average zoid on the streets of Cabbagetown and Hongcouver are mindlessly chewing their cuds, smoking a bong and dreaming of bike-lanes everywhere. Not much aside from a tactical missile strike on Davie Street will wake them bozos up.

FX223's picture

Yes the wake up call won't be subtle.