QV Update — Get paid to borrow
A colleague recently shared an article reporting that Danish lender Jyske Bank will start offering 10-year mortgages at an interest rate of -0.5%. Note the negative rate on this mortgage. Under this scenario, a borrower will end up paying back less than the amount they originally borrowed. The existence of negative interest rates is almost hard to fathom as it effectively means someone will pay you to borrow money. The concept is at odds with the time value of money, an underlying tenant of financial theory (the idea that “a dollar today is worth more than a dollar tomorrow.”) However, the reality is that negative yielding debt is becoming more common.
Investor Strategy —
August is no stranger to volatility, and the weakness in late July carried over throughout the month. It was a choppy month, no doubt about it, with a quick sell-off to kick start the month followed by elevated levels of volatility as markets bounced to-and-fro amid the trade war twitter turmoil. New tariffs announced by both China and the U.S. escalated trade tensions as well as fears of economic contagion.
Canso — Market Observer
If you’re wondering about what is going on in the financial markets, you are not alone. There are so many cross currents in the financial markets at present that many highly educated and very smart people have no idea what is happening. This possibly includes us, but we won’t let this stop us from observing on the markets for our loyal readers
Barney Bentall and the Cariboo Express are coming Saturday, November 23 and we want YOU to join us!
The 14th annual Barney Bentall & The Cariboo Express concert in support of Potluck Cafe Society will be held at the Vogue Theatre in Vancouver on Saturday, November 23rd, 2019 at 7:15 pm.
The Richardson GMP Vancouver office has moved!
Please note our office is now located at:
1055 West Hastings Street, Suite 2200
Vancouver, BC V6E 2E9