I read a report from RBS predicting that there will be a global market crash come the end of summer/beginning of fall 2008. The crash will be due to the price of oil, increasing inflation, increasing interest rates, and more global credit issues coming to light.

Here are some snippets of the highlights:

… the bank’s research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as “all the chickens come home to roost” from the excesses of the global boom, with contagion spreading across Europe and emerging markets…

… RBS expects Wall Street to rally a little further into early July before short-lived momentum from America’s fiscal boost begins to fizzle out, and the delayed effects of the oil spike inflict their damage. …

… the massive credibility chasms down which the Fed and maybe even the ECB will plummet when they fail to hike rates in the face of higher inflation will combine to give us a big sell-off in risky assets …

My initial thoughts are that it’s simply fear mongering. However, even if RBS is 100% correct, my thoughts are to keep your eye on the big picture as it will be only a blip on the stock chart 20 years from now. In fact, market corrections should be welcomed as it gives investors an opportunity to pick up some oversold strong companies at great prices.

If you can’t stomach the volatlity, you could look into hedging your portfolio with some Horizons BetaPro ETF’s or purchasing put options.

What do you think of reports like this? Do they influence your portfolio strategy?

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The Suns Financial Diary posted this question for his readers and I thought that I would ask the same question to my readers.

For those of you with discount brokerage accounts, which one is your favorite? Or, if you only have one, who do you hold your account with and why?

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I personally have multiple discount brokerage accounts as they as have different purposes. When I started investing many years ago, I opened an account with CIBC Investors Edge and still have an account with them. From there, I opened an account with Interactive Brokers to test out my trading skills, then an account with Questrade for cheap RRSP trades. All have strengths and weaknesses depending on the purpose of the account.

We have quite a bit of material on discount brokerages written here, you can find reviews on:

• Questrade
• Interactive Brokers
• CIBC Investors Edge
• E-Trade
• Think or Swim
• TradeFreedom

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I was fortunate enough to graduate from University with a positive net worth. My girlfriend at the time though (now wife), had a boat load of debt. How did I manage to get through 6 years of University with money in the bank?

Photo credit: Joe Shlabotnik

Here are 10 ways to Save Money in College/University:

1. Live at home if you can. If not, long term leasing of off campus housing is cheaper than staying in dorms/residence.
2. Pack your own lunch. I’m a big advocate of brown bagging your lunch as it’s a cheaper (and healthier) alternative to eating fast food.
3. Take public transit, or if practical, get a bicycle. If class is more than walking distance away from your home, take the bus! Another solution is to get a bicycle. Weather permitting, bicycling to class is not only cost effective, it’ll help burn off the beer gut!
4. Party on the cheap. Partying is inevitable in college, but you can save a lot of cash if you go to house parties rather than hitting the clubs/bars/pubs downtown.
5. Get a degree that offers paid work terms. With some institutions, degrees like Business, Engineering, Nursing, Pharmacy and Social Work offer paid work term opportunities. Not only do work terms offer experience, they usually offer pretty decent money to boot. During my work terms, I saved enough money to pay for books and tuition.
6. Get a part time job. I had a part time job throughout University, which is probably one of the biggest reasons why I could pay for food, booze and a girlfriend. :)
7. Buy your books used. Even if they upgraded the text book to a new edition the current semester, most of the information will be the same if you purchase an older edition.
8. Shop at thrift/second hand clothing stores. If you have the patience to sift through the racks of clothing, there is bound to be diamonds in the rough for a fraction of the cost of buying new.
9. Use your campus for recreational activities. If you like working out or playing sports, take advantage of the campus facilities as they are most likely discounted (or free) for students.
10. Use your student status for entertainment. Various movie theaters, restaurants and clothing stores typically have programs that offer discounts to students. Take advantage of them.

How did you save money during College/University?

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