newborn: so much stuff to think about

Since we've just had our new baby boy (what an experience!), I will soon have to start thinking about all the paper work and the financial stuff:
- SIN application
- Ontario registration
- federal "baby money"
- RESPs
- add the baby as a dependent on my insurance
- etc.

The good thing is these topics have been discussed a lot at different PF blogs ...

ok, back to sleep now :-)

quick post on interest cuts: gold to benefit?

Agreeing with a friend today who thought US interest rate would go way down, I bought some gold (XGD actually) ... it was a lucky move as it went up almost 3% from the price at which I bought it. Since I manage my father's portfolio as well and bought some for him, it was a double win.

Why gold when interest rates go down?

This article from the New York time summarizes it well:

Some aspects of today’s Fed’s move could fuel inflation fears. Gold, a traditional investment safe haven in times of inflation, soared immediately after the Fed’s decision was announced. As United States interest rates became less attractive for investment, the value of the dollar against the euro touched a new low before recovering slightly, and oil prices continued to climb even further above $80 a barrel.

Disclaimer: this is not investment advice. Buying on news like that is a type of market timing that can be risky.

Now let's buy some tires for that Santa Fe :-)

Since I've been posting on car stuff, I might as well let you know about my latest buy: 4 winter tires for my 2007 Santa Fe GLS. I bought so early because Costco had a sale on for Executive Members (the sale will be for all members in October). The great thing with that is being able to get the tires before they run out (yes they do!). I've paid a little more than 700$ (incl. taxes) for 4 Michelin X-Ice tires (very good in my opinion) and four 16-inch wheels. My GLS comes with 18-inch wheels but winter tires and wheels are hard to find in that size (and they would be very expensive). For the same package, Hyundai wanted to charge me 1400$ + taxes.


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On a different note, Rob Carrick from the G&M Gold, is saying that growth style investing (compared to value based) might be a good contrarian play to beat the market for the next little while. His source comes from this:

"No less an authority than BCA Research, a respected independent source of stock market commentary, has suggested that growth is the strategy of choice in today’s volatile markets."

how to sell a 1991 Honda Accord for 3600$

Talk about resale value for Honda cars! We just sold our 1991 Honda Accord for 3600$! Yes it had only 110K kms and was in good shape but it's still an impressive amount for a car that can't be insured for damage done to it! A lot of people predicted I'd never get close to that amount but I kept believing and it worked. I had to use negotiation tactics like not coming back with a counter-offer if the buyer's offer is too low. If they're interested, they'll come back with a new price. It took longer than I would have hoped but I didn't let my emotions run the show (I used to get discouraged quick in these situations before). The best thing is we had got this car used. So we didn't have to take the drop in the initial value that apply to all makes.

The lesson learned? Hondas have good resale value and you have to be patient when you're selling (or buying for that matter) stuff. Hey, maybe that same thinking applies to stocks: buy stocks with a good margin of safety (solid brand/company at a good price), be patient with your stocks and don't let your emotions take over! (hmmm... I've heard that before)

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Having just bought a new Santa Fe, I wonder if I'll ever get such a good resale value...