Why invest in Canada?

Here is a transcript of my latest chat with our media consultant.

Q: Why does redev focus primarily on Canada?

RC: Our strategy and focus on Canada goes hand-in-glove with my professional aversion to risk. I only shop for opportunity where risk can be controlled, minimized or eliminated completely. These days this means staying inside our traditional investment zone.

These days when you look at the US home prices are deflating in 21% of the 143 markets according to The Economist. According to the web site zillow.com 1 in 5 home owners are under water on their mortgages especially on the fourth quarter of last year. We see that for this year in the US there have been 4.5 million foreclosure filings up from 2.8 million in 2009, according to Realty Track. When I hear those kinds of numbers, I’m actually scared. I see in the States, quoting from the mortgage bankers association that 15% of homeowners are either in foreclosure or behind at least one payment on their mortgage in quarter four. According to the mortgage bankers association at least 3.9 million Americans are more than 90 days behind on their payments, which is triple the level of two years ago.

In the US in 2010 there were four more regional banks that failed recently bringing the total to 20 banks that have failed. We’re talking 20 billion plus in assets.
Those are the kinds of numbers I hear and see, I have to ask do I really want to invest in a place where things are going so poorly? Being risk averse this is something I just don’t want to do. You have to worry and you have to wonder.

In Canada we have good government and a well-regulated banking system and a safe economy and we have many resources. We should be very thankful to live here in Canada. So the bottom line is, "I go where I know and know where I go..."

Richard Crenian
richardc@redevgroup.ca
http://www.redevgroup.com

The New Sheriff by RIchard Crenian

Richard Crenian Blogs
February 19, 2010
The Sherriff of Wall Street
Wow, the Globe reported a story from the Associated Press that former CEO of Bank of America Ken Lewis misled investors about Merrill Lynch before B of A acquired it.
Lovely. Imagine being misled by Wall Street. Who would have thunk.
Bottom line the story is that B of A knew that the losses at Merrill were larger than anticipated but they chose not to tell investors. A Bank doing what? To whom?
Yes those mutual fund cos that bought into B of A and thought they were going great guns. What was the problem anyhow? The Bank had to report full disclosure, right?
Wrong. So here we are that the AG’s (Attorney General’s office) is charging them, and we also learn that B o A were trying to resolve the matters with the SEC as well. (Of course since the SEC was to regulate Bank of America as well.)
Anyhow, Howard and I like investing in what we control. Simple retail shopping centers. It is what it is.
I don’t have to worry about our investments, we have professionals we deal with and life is good. We are not in the get rich quick scheme of things. Just slow and steady. Just imagine, how big your savings would be today if you started investing and saving since day 1. Assuming of course you were choosing safe investments, and not gambling on the stock market.
Call Howard at 4036304544, or email him at howardmanley@shaw.ca to discuss strategies, or write me at richardc@redevgroup.ca.
Thanks for reading.
Article attached from the Globe below.
Richard Crenian
www.redevgroup.com


From the Globe website
Stephen Bernard and Ieva M. Augstums

New York — The Associated Press
Published on Thursday, Feb. 04, 2010 11:44AM EST

Last updated on Thursday, Feb. 04, 2010 1:54PM EST


.The New York Attorney General's office said Thursday it filed civil fraud charges against Bank of America Corp. (BAC-N14.90-0.63-4.06%) and its former chief executive officer Ken Lewis, saying the bank misled investors about Merrill Lynch before it acquired the Wall Street bank in early 2009.

Civil charges were also being filed against Joe Price, the bank's former chief financial officer.

At the same time Attorney General Andrew Cuomo's office was filing its civil charges, the U.S. Securities and Exchange Commission reached a settlement to resolve separate federal charges it brought against Bank of America over similar issues. It is the second time the SEC and Bank of America have tried to settle the case.

Bank of America has been accused of failing to properly disclose losses at Merrill and bonuses paid to investment bank employees before the deal closed. Mr. Cuomo called Bank of America's actions “egregious and reprehensible” in deceiving not only shareholders, but also the federal government.

The bank received an additional $20-billion (U.S.) in government bailout funds in January, 2009, to help offset losses it absorbed as part of the Merrill Lynch acquisition. In December, Bank of America repaid the $20-billion, plus the initial $25-billion it received in government bailout money.

Mr. Lewis stepped down as CEO from Bank of America on Dec. 31 after almost a year of strife that followed the bank's purchase of Merrill Lynch. Mr. Price became head of the bank's consumer banking division, taking over for Brian Moynihan, who succeeded Mr. Lewis as CEO on Jan. 1.

Mr. Moynihan is not under investigation.