It is cash that is going to be the big winner when its owners (take) the opportunity to reenter the market when things have cooled a bit. U. S. and Canadian stock markets have recovered most of the ground they lost in the bust of 2008. Around the world, there has been a surge of […] Read more
Which Way Will Stocks And Bonds Go?
Convertible Bonds’ Time Has Come
For an investor who wants to park some money off the farm and into an investment that’s fairly secure, convertible bonds are worth a look. They are bonds that can be switched into shares. With this option, rising interest rates driven by improving business conditions help the investment. Without that convertibility into stock, rising interest […] Read more
Passing On A Hog Operation
In southern Manitoba, a couple we’ll call Hank and Susie, both in their mid-50s, farm 1,200 acres of grain and run a hog finishing operation that feeds 1,200 pigs to market weight about two and a third times per year for a total production of 2,800 per year. They grow most of their own feed. […] Read more
2010 Not So Robust As 2009
Nothing lasts forever, not in capital markets, at least. The extraordinary performance of markets recovering from the debacle that lasted from mid-June 2008 to early March 2009 ended with a spectacular recovery that saw the S&P/TSX Composite Index rise more than 30 per cent for 2009. That was its best performance since 1979. For the […] Read more
Inflation Is Back: Should You Buy Real Return Bonds?
For bond investors, the rate of inflation is a critical factor in determining if a bond or a guaranteed investment certificate will be a winner or a loser. Buy a bond or a GIC that pays less than the rate of inflation, and you are on the losing side of the deal. Beat inflation and […] Read more
No Will Can Destroy The Farm
— KEVIN JAQUES “By doing the will himself, the farmer saved perhaps $50, but it cost his beloved sister a $500,000 loss out of the inheritance he undoubtedly intended for her.” Passing a farm down from one generation to the next is the dream and goal of many farmers. Saving the farm from being severely […] Read more
Corporate Bonds Ripe For Picking
Before buying any bond, check ratings at rating company websites like www.Moodys.comand www.dbrs.com.You have to register at each site for some rating information, but a lot of the data is free. There is money ready to be taken off the table in investment-grade bonds. That’s because many investors remain skittish and are reluctant to pay […] Read more
Poorly Written Will Threatens Farm
An Alberta grain farmer we’ll call Bill and his wife, who we’ll call Marilyn, both in their early 40s, have two teenagers. They are part of a family tradition that has seen his dad cultivate 3,000 acres of dry land. Now the question of succession has arisen. Bill’s dad, now in his 80s, has a […] Read more
Is The Recovery A V Or W?
The remarkable rise in the Canadian and American stock markets since they hit lows on March 9 raise the question: Where do they go from here? Let’s consider the numbers. Major stock indices are reporting strong recoveries. For example, the S&P/ TSX Total Return Index, which includes dividends, was up 23.7 per cent for the […] Read more
U. S. Citizenship Complicates Retirement
Want Help? Grainews is looking for farmers with troublesome financial questions. We will protect your privacy. We insist on examining real situations, but we DO NOT use real names or even identify your hometown. You do not have to pay to participate in this article. If you have a financial question, send your name and […] Read more
Cyber-Savvy Farmer
