- Ontario is getting rid of the tax break that investors received for buying labour-sponsored mutual funds. Good riddance! With annual expense ratios of upto 5%, front-end sales commissions, investments in thinly traded or privately-held firms and poor long-term returns, tax credits are pretty much the only reason for buying these funds, which are a poor deal for most small investors.
- Natural gas is trading at more than US$11 and gas prices hit $1.30 at many retailers in the Ottawa area. It is going to be very expensive heating our homes in our harsh northern climate this winter.
- Scooters are gaining popularity as gas prices climb relentlessly. My wife is very keen on the Vespa Granturismo available through Vespa Canada. Summer is almost over, so it will have to wait till next year.
- The Bank of Canada will most probably hike interest rates by 25 bps next week, as the Canadian economy grew by a strong 3.2% annual rate in the second quarter. The Bank strongly hinted at an increase in its previous decision.
- Sears Canada is selling its credit card business for $2.2 billion. I recently sold Sears Canada because I figured most of the value in the stock had been realized. Well, the stock surged more than 25% yesterday. Oops!
- Our thoughts and prayers are with the victims of Hurricane Katrina. The Canadian Red Cross is accepting donations.
Note: I’ve been really busy at work and at home, hence the relative silence. I should be back to regular blogging very soon.
