Tag Archives: shopping

How to invest and shop during Trump idiocracy

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Theatrical release poster for the film, Idiocracy. via Wikipedia.

By Mark Seed, myownadvisor

Special to Financial Independence Hub

A few months ago I wrote:

“Yes, interesting times may call for interesting portfolio changes! Or not. :)”

Well, here we are.

Regardless about how you feel about the current U.S. Administration, I would think most people would agree that this U.S. President feels very emboldened right now. With no future term to go: this is his last shot at taking shots at pretty much anything and everyone he wants without too many consequences near-term. At least it seems that way …

Since writing this post below from December I thought I would update such a post about any recent portfolio changes and beyond that, how our shopping habits have shifted (if at all) in recent months.

How to invest and shop during Trump idiocracy

I put the term “idiocracy” in the post title since it’s very much how I feel right now.

It’s like watching the Ferris Bueller movie scene: on tariffs.

History repeats.

Now that tariffs are in place and we’re now in a (trade) war between Canadian and U.S. businesses, consumers and workers (sadly), I’m expecting these tariffs will roil stock markets for months or years to come.

I have.

This is how I intend to invest and shop during some prolonged Trump idiocracy.

Approach #1 – What investments can withstand stagflation?

New tariffs are likely, in my opinion, to trigger a sustained period of low economic growth and even higher inflation: which will impact everyone.

At the most basic level, inflation means a rise in the general level of prices of goods and/or services over a period of time. When inflation occurs, each unit of currency buys fewer goods and services. Inflation results in a loss in the value of money and purchasing power. We will all be impacted by this.

Stagflation is essentially a combination of stagnant economic growth, high unemployment, and high inflation. When you think about it …. this combination probably shouldn’t exist: prices shouldn’t go up when people have less or no money to spend. This could be a place where things are trending…

Farmland might perform well during stagflation but we don’t own any.

Instead, I own some “defensive stocks” including some in key economic sectors like consumer staples, healthcare and utilities in my low-cost ETFs that should be able to weather a prolonged disruption. I also consider a few selected stocks we own as defensive plays: waste management companies. At the time of this post, both Waste Management (WM) and Waste Connections (WCN) we own have held up very well and provided stellar returns over the last 5+ years that I’ve owned them.

  • WM is up almost 100% in the last 5-years.
  • WCN is up over 100% in the last 5-years.

We’ll see what the future brings and my low-cost ETFs are a great diversifier: regardless.

Approach #2 – Staying global while keeping cash

Beyend certain sectors, investors should always consider holding a well-diversified stock portfolio across different sectors and different economic regions to reduce the long-term reliance on industries directly affected by tariffs.

While I have enjoyed a nice tech-kicker return from owning low-cost ETF QQQ for approaching 10 years now, and I will continue to hold some QQQ in my portfolio, I could see technology stocks tanking near-term. To help offset that, I own some XAW ETF for geographical diversification beyond the U.S. stock market. Thankfully. 

Times of market stress are however times to buy stocks and equity ETFs.

Near-term and long-term investing creates buying opportunities for disciplined investors. A well-structured, diversified global mix of stocks including those beyond the U.S. could provide some decent defence against a very toxic, unpredictable economic and political agenda.

For new and established readers on this site, you might be aware I’ve mentioned that our investing approach could be considered a “hybrid approach” – a structure that was established about 15 years ago as follows:

  1. We invest in a mix of Canadian stocks in our taxable account: to deliver income and some growth, and
  2. Beyond the taxable account, we own a bunch of low-cost ETFs like QQQ and XAW inside our registered accounts: inside our RRSPs, TFSAs and my LIRA for extra diversification.

I like the hybrid approach, the process and the results to date.

At the time of this post, I just don’t see how I should be making any significant changes to our equity portfolio.

Beyond our portfolio of stocks and equity ETFs we keep cash/cash equivalents.

Cash savings remains a good hedge for a very uncertain near-term future. We have a mix of Interest Savings Accounts (ISAs) / High Interest Savings Accounts (HISAs), along with Money Market Funds (MMFs) in particular in our registered accounts. Generally, plain-vanilla savings accounts offer very low interest rates. So, if you want to earn more on your savings deposits (rather than simply using your savings account) then consider an ISA or HISA.

The greatest appeal of ISAs and HISAs for taxable savings IMO is liquidity, while earning interest, and member financial institutions of Canada Deposit Insurance Corporation (CDIC) insure savings of up to $100,000. It’s good business for banks and institutions as well since money deposited generates interest by allowing the bank to access those funds for loans to others. There are usually no fees for these accounts and while interest rates have come down in recent months, ISA and HISA interest rates are consistently north of 2% at the time of this post.

I believe some form of savings account / ISA / HISA remains the cornerstone of everyone’s personal finance portfolio since 1. your money is saved for future expenses or ready for emergencies, 2. it is safe/low risk, 3. it is liquid, and 4. you still earn returns.

Let your equities do as they wish after that.

Approach #3 – Shop local, buy local, and avoid U.S. travel

We are fortunate to live in an area in Ottawa where we can shop local and buy from local farmers. We will continue to do that.

For those that want to shop more in Canada and buy more Canadian goods visit here:

We’ve been fortunate to save up some money in our “sunshine fund” as I call it for some future travel. I/we have no near-term plans to spend our money in the U.S.

I’ve been fortunate to visit many, many U.S. States over the years but given this recent trade war initiated by this current U.S. Administration I hardly have any desire to spend my money in a country whereby that government talks about annexing us.

It’s that simple for us.

I encourage other Canadians who can and do travel, to consider the same – avoiding the U.S. – not because of its citizens but the U.S. Administration decisions. Continue Reading…

Gift Giving on a Budget: How to spend more wisely this Holiday Season

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By Tyler Thielmann, Spring Financial

Special to Financial Independence Hub

A recent survey from Canadian fintech company Spring Financial, found that nearly three quarters (74%) of respondents plan on reducing holiday spending this year and shoppers, particularly Gen Z (66%) and millennials (64%), are finding the financial strain of buying gifts to be the most stressful part of the holidays.

The economy has been challenging this year so it’s no surprise that shoppers are feeling added stress this holiday season. Whether you’ve already started your shopping or you haven’t even started your list, below are some practical holiday shopping tips to help make your spending less stressful and more manageable.

1.) Spread the joy of pre-loved items

This one might be easier said than done but with half of shoppers opting for gift alternatives, there’s a good chance your friends and family may be relieved about the idea of traditional gifts with more financially feasible alternatives. For example, places like Facebook marketplace often have gently-used children’s toys that offer a more budget-friendly price tag for the little ones on your list, while a traditional baking or book exchange can be a great alternative to Secret Santa games for the adults in your life.

2.) Set a budget and stick to it

It can be so easy to overspend during the holidays. There is always someone to shop for and shops — whether online or in-store — are set up in a way that encourages impulse buying and overspending. To set yourself up for success, set a budget and shopping plan before starting shopping to ensure you’re sticking to a spending limit that works for you. Don’t forget to account for all the extra expenses that come with this time of year like food, host gifts, and transportation to and from any holiday parties you have coming up.

3.) Compare your debt options

Sometimes, taking on a bit of debt is necessary to keep the holiday magic alive. The good news is, there are lots of financial options available to shoppers. Comparing the interest rates on any buy-now-pay-later programs as well as credit cards, lines of credit and loan is a great way to determine which debt option will be the easiest to pay off post-holidays. Continue Reading…

Six spending personalities that can wreak havoc on your finances

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What is your spending personality
Image Credit: Shutterstock

By Avraham Byers,

Special to the Financial Independence Hub

Overspending is a common problem for many people; it creates debt, anxiety and relationship problems, even among high income earners. All too often, people’s spending habits seem to rise to meet – and exceed – their incomes.

So why does this happen? What compels people to overspend when they already have the items they truly need? The answer lies deep within each person’s spending personality. Recently, I read Dr. April Benson’s book I Shop Therefore I Am, and was fascinated by what shoppingbookthe contributing authors uncover about the emotional and psychological factors influencing our buying habits.

I thought it would interesting, and beneficial, to touch on the six key spending personalities they explore: image spenders, bargain hunters, collectors, compulsive shoppers, co-dependent spenders (a.k.a. gift-givers) and bulimic spenders. Continue Reading…

Pretty Little Poor Girl’s tips for shopping on Black Friday

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Just in time for Black Friday, we’re pleased to present this timely blog from Danielle Kubes, the blogger behind the Pretty Little Poor Girl blog. You can also find the piece at her site here. Love that slogan: “Because financial literacy is hot.” With Danielle’s permission we’re running it below at the Hub too, and  we hope to run more pieces in the future.

mypic
Danielle Kubes, Pretty Little Poor Girl

By Danielle Kubes

Special to the Financial Independence Hub

I only really shop three times a year:

▪ August sales

▪ January sales

▪ Black Friday

It’s a waste of money to buy anything any other time a year. I’m allergic to paying full retail-price for anything so I save up all my money to buy clothes and shoes on sale. And almost everything WILL go on sale eventually.

And by sale, I mean REAL sales. Not those “fake sales,” which are popular with American stores like Bath and Body Works, Ann Taylor and Express. Literally every time I walk into their stores there is “30%” off sweaters, Buy 2 body lotions get 2 free etc.,

If there is ALWAYS a sale, that “sale” price is just the TRUE price.

Which I why I wait until there are legit sales, like when they actually want to move merchandise. Those three time periods are the only time that really happens.

black friday shoppingNotes 

▪ Often Black Friday is NOT the cheapest time to buy things, but it can be if you need something before January, like Christmas gifts, or there is something you need/desperately want that you legitimately feel might be gone by January sales

▪ It’s important to figure out whether further discounts will be applied on Boxing Day, or later in January. This comes with a few years experience shopping sales. I suggest writing down the discounts available this year, so you know what to expect more for next year. They are usually quite similar year-to-year

▪ A week before Black Friday there are usually sales. DO NOT FALL FOR THIS.

▪ For example, this week everything at Old Navy is 30% off. But it will be 50% off on Black Friday.

▪ Ask the salespeople what sorts of sales they will be having Black Friday. Some stores in Canada, especially the Canadians one don’t participate. For these sales you’ll have to wait until after boxing day. But American stores do Black Friday amazingly

▪ In Toronto, I’ve noticed recent American imports Express, Ann Taylor/Loft and JCrew can have amazing Black Friday sales. Don’t bother with Artizia. The best time to shop at Aritzia is in late August and late January. GOLDEN TIP

Danielle Kubes is a freelance journalist in Toronto. She believes in a balanced attitude toward financial independence. What would her weekends be without brunch? Sad and lonely. But you can also find her hand-washing clothes to save a few bucks at the laundromat.