Hello,
The housing issues, particularly on the west coast, have taken the spotlight, with Steve Saretsky’s piece shedding light on the situation. High mortgage rates pose significant challenges, and Steve also delves into the ongoing tussle between Ottawa and municipalities regarding housing construction.
A positive note this week is the drop in short-term interest rates, as highlighted in two interviews. Jim Thorne believes the Bank of Canada will soon reduce rates, possibly ahead of the United States.
Adam Rozencwajg, a guest on HC Insider, offers a bullish perspective on Natural Gas and Uranium, underlining the structural changes occurring in the energy sector.
Doomberg’s insightful analysis delves into Germany’s energy issues and their repercussions in Canada.
Jon Heinzl, writing for the G&M, explores the long-term advantages of investing in bank stocks, exemplified by a 40-year review of Royal Bank. The well-regulated Canadian banking industry and its world-class lending practices are emphasized.
Norway is reevaluating its stance on electric vehicle adoption, reflecting a broader trend among many countries.
Les Leyne, in his TC article, examines the current state of the Carbon Tax in BC, an initiative launched by the Liberals over a decade ago.
WeWork, once a venture capital darling, is now on the verge of bankruptcy, as reported in the WSJ.
In the world of music, the latest Beatles song was released this morning, with a fascinating backstory that involves collaboration between surviving members and advanced technology.
South Africa’s triumphant World Cup victory brought immense joy to Gina. It also offered the world a deeper understanding of their Captain, accompanied by his post-win remarks and the renowned 2021 speech. South Africa, like many other nations, craves role models like Siya Kolisi, who sets a shining example for a brighter future.
Best regards,
David
Number 2- Short End
Number 3- Renewables, Natural Gas and Nukes with Adam Rozencwajg
2023, Renewables have struggled with rising costs and higher interest rates. Alongside, there is a growing palpable shift in the perceptions, and expectations of nuclear power’s role in the energy transition. Is this a structural shift? Natural gas remains the bridge fuel but can shale production keep up with growing US exports and if not, what will that mean? in this episode, Adam Rozencwajg, Managing Partner of Natural Resource investor Goehring and Rozencwajg rejoins us to discuss the structural shifts and shifting sentiments in energy in 2023 and what 2024 may hold in store.
Number 4- Reality Bite- Doomberg
Democracies governed by a multi-party parliamentary system have a significant design flaw: when no single party wins enough seats to form a majority government, the party achieving a plurality of the vote must use valuable concessions to solicit support from another party. In many such instances, these alliances can be leveraged by far-leaning parties to capture substantial and unwarranted power. In some countries, a single vote of no-confidence against the government can trigger an election, and the constant threat of such an outcome only adds to the power of the minority group holding just enough seats to be the deciding factor.
Consider Jagmeet Singh, leader of Canada’s leftist New Democratic Party (NDP). In the country’s 2021 federal election, Singh’s party won less than 18% of the popular vote and only 7.4% of the seats in parliament. Outside of the westernmost province of British Columbia, the NDP was victorious in just 12 of 296 races despite being one of only two parties in the country to field a candidate in every riding. Notwithstanding these paltry numbers, the NDP was the only logical coalition partner to Justin Trudeau’s Liberal Party, and Singh parlayed this position into becoming arguably the second most powerful person in the country
Like the proverbial dog who caught the car, the Greens suddenly find themselves in an interesting and existentially dangerous position. Left without a unifying mission, the architects of one of the greatest policy blunders of all time have little to do but face the lies they told in justifying their foolhardiness in the first place. As winter approaches, and the data rolls in, the political fallout is manifesting quickly. Six months on from that fateful day in April, what is the current state of affairs in Germany? How will the country power itself through this winter and in the years ahead? Will the current rightward shift in German politics lead to blowback the Greens might soon regret? Let’s head to the Bundestag and survey the damage.
Number 5- The (really) long-term benefits of dividend reinvestment
Let’s step into our time machine and assume an investor purchased 1,000 shares of Royal Bank RY-T on Dec. 30, 1983. The price at the time was $34.38 a share, so that’s a total investment of $34,380. True, that was a rather large chunk of change – a brand new Hyundai Pony retailed for about $6,000 at the time – but we’ll assume the investor didn’t put another dime into Royal Bank stock apart from reinvesting dividends every quarter.
Before we continue, it’s important to note that Royal Bank’s stock has split on a two-for-one basis three times since then – in 1990, 2000 and 2006. Because each split would have doubled the number of shares, the investor would have 8,000 shares today, even without reinvesting any dividends.
Fast-forward nearly 40 years, to Sept. 29, 2023. Royal Bank’s shares closed that day at $118.70. So, based on capital growth alone, excluding dividends, the initial investment of $34,380 would have grown to $949,600 (8,000 shares times $118.70). That works out to a return of about 2,662 per cent, or 8.7 per cent on a compound annual basis.
Number 6- Norway
“So ,I flew across the Atlantic to see what the fuss was about. I discovered a Norwegian EV bonanza that has indeed reduced emissions — but at the expense of compromising vital societal goals. Eye-popping EV subsidies have flowed largely to the affluent, contributing to the gap between rich and poor in a country proud of its egalitarian social policies. Worse, the EV boom has hobbled Norwegian cities’ efforts to untether themselves from the automobile and enable residents to instead travel by transit or bicycle, decisions that do more to reduce emissions, enhance road safety, and enliven urban life than swapping a gas-powered car for an electric one.”
“The mistake is to think that EVs solve all your problems when it comes to transport,” said Ruohonen, the Oslo mayoral adviser. “They don’t.”
They just want to stop you from driving and hinder your mobility. All in the name of climate change. And naturally, the policies are expensive, and the incentives are misaligned. Who knew?
http://Why Norway — the poster child for electric cars — is having second thoughts (msn.com)
Number 7- Les Leyne: Carbon tax on shaky ground since Trudeau blunder
BC United is retreating from one of its predecessor party’s most cherished positions, while the NDP, which once campaigned against the carbon tax, is defending it.n https://www.timescolonist.com/opinion/les-leyne-carbon-tax-on-shaky-ground-since-trudeau-blunder-7766847
New Democrats, who rejected the tax from day one and once fought an entire election campaign against it (and lost), are now defending it. And former Liberals like Falcon who defended it for years look ready to back away from it. BC United will be pursuing the steep costs acknowledged in the overall Clean BC plan in coming weeks, to see if affordability is a bigger deal than climate change in voters’ minds.
Number 8- WeWork Plans to File for Bankruptcy as Early as Next Week (WSJ)
Once a venture capital-backed star with an astronomical valuation, the flexible-office-space provider is now preparing for chapter 11 protection
WeWork was once a darling of the venture-capital world, but its performance has fallen short of the lofty expectations investors once ascribed to it. The company’s co-founder Adam Neumann was ousted in 2019 after investors raised concerns about his unorthodox management style and related-party transactions with the company. WeWork went public in 2021 through a merger with a special-purpose acquisition company after earlier plans for an initial public offering were scrapped.
Number 9- The Beatles - Now And Then - The Last Beatles Song (Short Film) https://www.youtube.com/watch?v=APJAQoSCwuA
Now and Then’s eventful journey to fruition took place over five decades and is the product of conversations and collaborations between the four Beatles that go on to this day. The long mythologised John Lennon demo was first worked on in February 1995 by Paul, George and Ringo as part of The Beatles Anthology project but it remained unfinished, partly because of the impossible technological challenges involved in working with the vocal John had recorded on tape in the 1970s. For years it looked like the song could never be completed. But in 2022 there was a stroke of serendipity. A software system developed by Peter Jackson and his team, used throughout the production of the documentary series Get Back, finally opened the way for the uncoupling of John’s vocal from his piano part. As a result, the original recording could be brought to life and worked on anew with contributions from all four Beatles. This remarkable story of musical archaeology reflects The Beatles’ endless creative curiosity and shared fascination with technology. It marks the completion of the last recording that John, Paul and George and Ringo will get to make together and celebrates the legacy of the foremost and most influential band in popular music history.
https://www.youtube.com/watch?v=APJAQoSCwuA
The Beatles – Now and Then (Official Audio)
Number 10 - Siya Kolisi
South Africa captain Siya Kolisi says Springboks offer hope to his country.
https://www.youtube.com/watch?v=NYzhM0dNmR8
SIYA KOLISI – SOUTH AFRICA RUGBY TEAM – Iconic Speech
https://www.youtube.com/watch?v=n5vS5LNBKhw
short YouTube video on Siya Story
article on his story
We hope you found the Top Ten interesting this week, and are looking forward to another selection of articles, stories, and commentary next week. If you know of anyone else who would be interested in receiving our weekly note, please let me know.
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