Categories
Investing

S&P/TSX 60 Stocks Dividend Yields (March 30, 2020)

Don’t chase yields, but in this environment you don’t really have to.

To provide a head start to the dividend-yield freaks out there, below I’ve listed all S&P/TSX 60 stocks in order of their dividend yield.

There are plenty of high quality stocks out there paying hefty dividend yields. Stocks in the TSX 60 Index are some of the largest in Canada and many are built to last. While not all these companies will survive the current upheaval, there are many that are key pillars of the Canadian economy.

What’s more, many of these companies are trading close to their 52 week lows.

(Table best viewed on desktop)

SymbolCompanyDiv YieldDividendPrice52w Low% from lowPE Ratio
TSE:IPLInter Pipeline Ltd21.81%$1.71$7.84$5.3546.54%6.01
TSE:BPY.UNBrookfield Property Partners LP15.05%$1.77$11.76$10.3413.73%6.06
TSE:PPLPembina Pipeline Corp10.66%$2.52$23.65$15.2754.88%8.93
TSE:SUSuncor Energy Inc.9.80%$1.86$18.97$14.0235.31%10.21
TSE:CNQCanadian Natural Resources Ltd9.54%$1.50$15.72$9.8060.41%3.46
TSE:ENBEnbridge Inc8.11%$3.24$39.95$33.0620.84%15.16
TSE:CMCanadian Imperial Bank of Commerce7.29%$5.76$79.00$67.5217.00%7.04
TSE:POWPower Corporation of Canada7.54%$1.62$21.49$17.4723.01%8.49
TSE:MFCManulife Financial Corporation6.59%$1.12$17.00$12.5835.14%6.14
TSE:BNSBank of Nova Scotia6.57%$3.60$54.81$46.3818.18%8.06
TSE:BMOBank of Montreal6.25%$4.24$67.81$55.7621.61%7.74
TSE:SJR.BShaw Communications Inc Class B5.35%$1.19$22.23$17.7725.10%16.37
TSE:BCEBCE Inc.5.75%$3.17$55.15$46.0319.81%16.35
TSE:NTRNutrien Ltd5.20%$2.39$45.94$34.8032.01%19.32
TSE:TRPTC PIPELINES LP Common Stock5.56%$3.24$58.27$47.0523.85%13.64
TSE:NANational Bank of Canada5.46%$2.84$52.03$38.6734.55%7.99
TSE:TTELUS Corporation10.86%$2.33$21.46$18.5515.69%14.8
TSE:IMOImperial Oil Ltd5.92%$0.88$14.86$10.2744.69%5.17
TSE:TDToronto-Dominion Bank5.06%$2.96$58.46$49.0119.28%8.87
TSE:CVECenovus Energy Inc8.30%$0.20$2.41$2.0616.99%1.35
TSE:RYRoyal Bank of Canada5.09%$4.32$84.80$72.0017.78%9.42
TSE:EMAEmera Inc4.54%$2.45$54.00$42.1228.21%19.55
TSE:BIP.UNBrookfield Infrastructure Partners L.P.4.70%$2.63$55.91$37.4549.29%69.8
TSE:SLFSun Life Financial Inc4.98%$2.20$44.20$35.4324.75%10.03
TSE:CTC.ACanadian Tire Corporation Limited Class A5.30%$4.55$85.87$67.1527.88%6.82
TSE:QSRRestaurant Brands International Inc4.86%$2.77$57.02$36.4856.30%29.76
TSE:MGMagna International Inc.4.71%$2.12$44.98$33.2235.40%5.76
TSE:FTSFortis Inc3.64%$1.91$52.49$41.5226.42%13.88
TSE:GILGildan Activewear Inc4.55%$0.82$18.01$13.6432.04%10.15
TSE:RCI.BRogers Communications Inc. Class B3.50%$2.00$57.20$46.8122.20%14.36
TSE:WNGeorge Weston Limited2.12%$2.10$98.91$84.0117.74%78.36
TSE:TRIThomson Reuters Corp2.03%$1.91$94.25$75.9124.16%91.58
TSE:AEMAgnico Eagle Mines Ltd1.87%$1.06$56.63$43.2530.94%20.4
TSE:SAPSaputo Inc.2.04%$0.68$33.29$29.3113.58%21.49
TSE:CNRCanadian National Railway1.98%$2.15$108.33$92.0117.74%18.57
TSE:LLoblaw Companies Ltd1.82%$1.26$69.14$59.0117.17%23.83
TSE:OTEXOpen Text Corp1.92%$0.93$48.53$42.3014.73%28.81
TSE:ABXBarrick Gold Corp1.36%$0.37$27.29$15.7273.60%8.65
TSE:CCL.BCCL Industries Inc. Class B1.82%$0.72$39.54$34.5714.38%14.84
TSE:TECK.BTeck Resources Ltd Class B2.04%$0.20$9.78$8.1520.00%#N/A
TSE:WPMWheaton Precious Metals Corp1.22%$0.48$39.47$26.5048.94%146.52
TSE:MRUMetro, Inc.1.41%$0.80$56.83$47.8818.69%21.37
TSE:ATD.BAlimentation Couche-Tard Inc Class B1.52%$0.50$32.88$30.408.16%12.81
TSE:BAM.ABrookfield Asset Management Inc1.52%$0.95$62.48$47.0232.88%25.78
TSE:CPCanadian Pacific Railway Ltd1.08%$3.32$307.91$252.0022.19%17.58
TSE:FNVFranco Nevada Corp0.96%$1.33$138.48$93.2448.52%54.13
TSE:CCOCameco Corp0.77%$0.08$10.44$7.6935.76%55.88
TSE:WCNWaste Connections Inc0.90%$0.99$109.70$100.559.10%36.63
TSE:DOLDollarama Inc0.44%$0.18$40.78$34.7017.52%23.33
TSE:CSUConstellation Software Inc.0.42%$5.38$1,275.90$1,076.3418.54%58.09
TSE:SNCSnc-Lavalin Group Inc0.42%$0.08$18.97$15.4722.62%10.15
TSE:FMFirst Quantum Minerals Limited0.14%$0.01$6.99$4.7148.41%#N/A
TSE:BHCBausch Health Companies Inc0.00%$0.00$21.60$16.3032.52%#N/A
TSE:BBBlackBerry Ltd0.00%$0.00$5.54$3.9440.61%#N/A
TSE:BBD.BBombardier, Inc. Class B0.00%$0.00$0.43$0.3813.16%#N/A
TSE:WEEDCanopy Growth Corp0.00%$0.00$20.53$12.9658.41%#N/A
TSE:GIB.ACGI Inc0.00%$0.00$74.19$67.2310.35%16.46
TSE:KKinross Gold Corporation0.00%$0.00$5.76$4.0044.00%7.24
TSE:SHOPShopify Inc0.00%$0.00$611.52$254.23140.54%#N/A
Subscribe now to get your free copy of ‘CoronaCrisis’

The Covid-19 economic crisis is gripping the world. After 20 years in the asset management business, it looks like we are fighting through unprecedented territory.

This is war. I created a 17 step, 47 page guide to help DumbWealth subscribers get through this.

I originally planned on printing the guide and selling copies for $20+. Instead I’m giving this away free because I think we all need to help each other during these difficult times.

Categories
Investing

19 Charts To Start the Week

The following charts provide a snapshot of the latest data and trends driving markets and the economy. Stay tuned.

Daily US Covid-19 tests:

US Mortgage rates rose (?) into the crisis:

A chart you thought you’d never see – US jobless claims skyrocket:

Decline in private sector activity in the US:

Eurozone collapse in business activity:

As unprecedented monetary stimulus launched, size of the US Federal Reserve balance sheet skyrockets:

European consumers just beginning to wake up to their new reality:

Japanese business activity collapsing as key trading partners shut down:

March job losses predicted to be 150,000. Way more to come:

Pre-coronavirus unemployment rates in US and Canada:

Where will super-low oil prices (Western Canadian Select reportedly trading around $7) lead the CAD/USD:

The demise of the Alberta tar sands represented by one chart:

The Bank of Canada is at the quantitative easing party:

Vanguard’s buy-and-hold investors increased trading during the turmoil, but overall trading remains very low. Clearly these investors are committed to the passive plan:

Central bank firepower. Canada and US a long way from ‘turning Japanese’:

Restaurants worldwide are getting killed:

Potential treatments for Covid-19:

Covid-19 fiscal stimulus as a percent of GDP…so far:

10 year equity return forecasts trending upward as prices decline:

Subscribe now to get your free copy of ‘CoronaCrisis’

The Covid-19 economic crisis is gripping the world. After 20 years in the asset management business, it looks like we are fighting through unprecedented territory.

This is war. I created a 17 step, 47 page guide to help DumbWealth subscribers get through this.

I originally planned on printing the guide and selling copies for $20+. Instead I’m giving this away free because I think we all need to help each other during these difficult times.

Categories
Life

US Hospitals Collapsing

As the Covid-19 coronavirus case count in the United States grows, the health system is coming under increased pressure and is on the verge of collapsing.

Cases in the United States are now growing by over 10,000 people per day, with New York City being the worst hit region.

Whether or not you’re scared of catching Covid-19, you need to consider the hospital system as CLOSED FOR BUSINESS.

Essentially, if you need to access a hospital you’ll soon be competing against 4.8 million Covid-19 hospital admissions, of which 1.9 million will require intensive care. There aren’t enough beds or ventilators to support this. Soon, doctors will have to choose who lives or dies. This means if you’re older or have pre-existing conditions you’re out of luck. This is what happened in Italy and China.

Screen Shot 2020 03 06 at 1.41.37 PM

DO NOT GET SICK!

Healthcare resources throughout the US are increasingly at max capacity, and now is not the time to suffer some preventable injury. Hospitals in America are quickly becoming hot zones for the virus and many are not equipped to take adequate precautions against the spread within hospitals.

I am extremely disappointed in our ‘leaders’. We saw this coming a mile away. Yet, officials remained blindly optimistic that their districts were somehow immune. Honestly, I question the intelligence of anyone who didn’t at least consider the possibility of a local outbreak. Really, it comes down to basic math and observation. China doesn’t lock down 60 million people for nothing.

Worse yet, there ARE people who knew the virus would spread but still denied it so businesses could stay open. They chose to trade human lives for the almighty dollar.

    Well, here we are. Experiencing a health crisis, financial crisis and economic crisis wrapped into one shit-storm. Predictably, the hospitals are already imploding – and it has just begun.

    Here are some quotes from various healthcare workers on the current situation in US hospitals:

    “We’re really at the beginning of this outbreak. And you can feel that. You can sense that. It’s palpable on the front lines in the emergency department. Hospitals are nearing capacity. We are running out of ventilators. Ambulance sirens don’t stop.”

    “If we have multiple frontline health care workers, ER physicians, nurses go down in this epidemic — a situation where you have colleagues taking care of colleagues in the intensive care unit — there’s nothing more destabilizing for the United States.”

    “You have an elderly couple that is having chest pain sitting right next to someone who has a cough and flu. I think that’s extremely reckless.”

    “Last week when I went to work, we talked about the one or two patients amongst the dozens of others that might have been a Covid or coronavirus patient. In my shift yesterday, nearly every single patient that I took care of was coronavirus, and many of them extremely severe. Many were put on breathing tubes. Many decompensated quite quickly. There is a very different air this week than there was last week.”

    “We don’t have the machines, we don’t have the beds. To think that we’re in New York City and this is happening. It’s like a third-world country type of scenario. It’s mind-blowing.”

    This is a sad moment for humanity. It didn’t have to be this way.

    Subscribe now to get your free copy of CoronaCrisis

    The Covid-19 economic crisis is gripping the world. After 20 years in the asset management business, it looks like we are fighting through unprecedented territory.

    This is war. I created a 17 step, 47 page guide to help DumbWealth subscribers get through this.

    I originally planned on printing the guide and selling copies for $20+. Instead I’m giving this away free because I think we all need to help each other during these difficult times.

    Categories
    Life

    Covid-19, The Economy and Mental Health

    This is the beginning of my second week of quarantine. At first, it was fun and novel. I’m an introvert so sitting at my desk all day doesn’t phase me.

    I knew why I was being quarantined: to mitigate the effects of a global pandemic. I also knew the economy was about to hit a shit-storm, as I wrote in a February 26th article – Could Covid-19 Trigger a 2008-Style Financial Crisis.

    However, the gravity of the health and economic catastrophe is only just becoming real. The case count in my city is rapidly growing and horrible stories of pain and suffering are hitting the press.

    Now we have economists like James Bullard (St Louis Federal Reserve) saying we could see a 50% real GDP contraction in Q2 and 30% unemployment. Presumably, that’s the worst case scenario.

    While it is possible the pain is sharp and short, the longer the system unravels the longer it takes to put it back together. A slow resolution to the medical challenge risks negative psychology becoming permanent.

    Today my anxiety is through the roof. Many of you have told me you are feeling the same way.

    CAMH (Canada’s largest mental health teaching hospital) provides helpful tips for coping with being quarantined:

    Dealing with isolation

    People placed in quarantine or self-isolation may experience a wide range of feelings, including fear, anger, sadness, irritability, guilt or confusion. They may find it hard to sleep. Some people might feel relieved. Humans are social creatures and need connection to others to thrive, which can make isolation challenging. The following suggestions may help you through this challenging time:

    Keep busy

    • Create and stick to a schedule for work, leisure, chores, meals, physical activity and sleep. 
    • Many people will not be able to work when they are quarantined. Explore if your employer will allow you to work from home and attend meetings via teleconference or videoconference. Keeping busy with day-to-day activities can be helpful. Loss of income is a major source of fear and not everyone has a supportive work environment.
    • Catch up on other tasks or projects at home. 
    • Do things that you normally love to do (e.g., crosswords, puzzles, reading, TV shows, listening to music).

    Social interaction

    • Think of ways to stay connected to other people – by videoconference, phone, chat or text. Talking to others and sharing how you are feeling is important. So is asking for help when you’re feeling overwhelmed.

    Self-care

    • As much as is possible, prepare healthy meals and drink lots of water. 
    • Stay physically active: go online to find exercises you can do at home with no equipment.
    • Practise relaxation or meditation. 

    Prepare ahead

    • Stock up on groceries and supplies ahead of time if possible, including dried pasta, rice, canned foods, hygiene products, medications and toiletries.
    • Plan ahead with family or friends to get additional food and supplies if you are quarantined. 
    • Use delivery services to order groceries. Your local grocery store may offer this service. 
    • Ask your pharmacy if they can deliver medications you need, or plan ahead to make sure you have enough medication to last through your quarantine.  If you take opioids to treat either chronic pain or addiction, make sure that the pharmacist and prescriber are available to ensure an uninterrupted supply of your medication. 
    • Keep a list of important numbers, including your doctor, public health, pharmacy and hospital.

    CAMH also provides 16 tips for managing stress and anxiety during the Covid-19 coronavirus pandemic:

    1 Accept that some anxiety and fear is normal

    COVID-19 is a new virus and we are still learning about it. The uncertainty about the virus and the changes that are unfolding can make most people feel a bit anxious. This is normal, and it actually can help motivate us to take action to protect ourselves and others, and to learn more about the pandemic.

    2 Seek credible information

    Stay informed by checking information provided by experts and credible sources. A lot of information is disseminated about COVID-19 every day, but not all of it is accurate. Some reliable sources include: 

    Avoid unfamiliar websites, or online discussion groups where people post information from non-credible sources or share stories which may or may not be true. Be wary of what is posted on social media, and always consider the reliability of information you see on Facebook, Instagram and Twitter.

    3 Assess your personal risk

    It is helpful to get a clear and accurate sense of your personal risk. We recommend using the following credible sources of information.

    4 Find a balance: Stay tuned in, but know when to take a breather

    While staying informed is helpful, too much information may not provide extra benefit. Limit checking sources to once per day or less if you can. This includes reading or listening to news stories about COVID-19. Even though things are shifting rapidly, daily changes are not likely to affect how you should manage your risk.

    5 Bring an intentional mindset to unplugging

    • Set aside some time to unplug from all electronics, including phone, tablets and computers. Disconnect for a while from social media outlets. You may need to schedule this to make sure it happens.
    • Do something fun and healthy for yourself instead (e.g., read, work, exercise).

    6 Deal with problems in a structured way

    All the issues you might need to address during this pandemic situation may feel overwhelming. It can be useful to identify which things are actually problems that need to be solved or addressed, and which are just worries that are not necessarily grounded in reality. Click here for some steps you can take to resolve issues that come up for you.

    7 Remember that you are resilient and be careful with the “What ifs”

    Our stress and anxiety generally cause us to focus on negatives and trigger “What if” questions, such as “How will I cope if I get sick?” or “How will I manage if I have to self-isolate?” They can also drive us to think about worst case scenarios.

    In stressful situations, people often overestimate how bad the situation can get, but underestimate how well they will be able to cope. People are resilient and have coping skills they use every day.  

    • Think of difficult or challenging situations you have an encountered that you were able to manage. Even if things weren’t perfect, what did you do to cope with the situation?
    • Remind yourself that you can handle stress and that if you feel you need support, you can reach out to family, friends, colleagues or professionals.
    • Remember our collective resources – from excellent health care and public health response systems to strong and resilient communities. Try to replace catastrophic thoughts with something like, “This is definitely a difficult time, but we will get through it together.”
    • Don’t underestimate what you are able to do when faced with challenges. 

    8 Challenge worries and anxious thoughts

    High levels of anxiety and stress are usually fuelled by the way we think. For example, you might be having thoughts such as “I am going to die” or “There is nothing I can do” or “I won’t be able to cope.” These thoughts can be so strong that you believe them to be true. 

    However, not all our thoughts are facts; many are simply beliefs that we hold. Sometimes we have held these beliefs for so long that they feel like facts. How do we know if our thoughts are true or are just beliefs we’ve grown used to? Click here to work through an exercise to challenge your worries and anxious thoughts.

    9 Decrease other stress

    COVID-19 is probably not the only source of stress in your life right now. Consider addressing other sources of stress to reduce your overall level of anxiety. You can use problem solving steps outlined above (link), challenge your thinking, practicing relaxation and meditation or other strategies you may have used in the past that have helped.

    10 Practice relaxation and meditation 

    Relaxation strategies and meditation can help reduce or manage your levels of stress and anxiety. There are many options to consider:

    • formal meditation practice such as yoga or mindfulness meditation
    • informal or self-help approaches such as books and online videos
    • relaxation through any activity that you find enjoyable and relaxing.

    Choose an activity that works for you and that you are likely to continue doing. Start slowly and gradually work toward a regular practice. 

    11 Seek support

    Social distancing does not mean you should break off all contact from loved ones. Being alone can lead to spending too much time thinking about the current situation, resulting in increased stress and anxiety. It can be helpful to connect with people who are a positive influence when you are feeling stressed.

    • Reach out and get support from these people – either in person or through phone or video calls or text messaging. 
    • Look for formal support, either online or by phone, that can help you during high-stress times. For example, you may turn to distress lines, online support groups, or resources in your community such as religious institutions. 

    Try to avoid people who are negative when talking about current affairs or events, or who generally increase your stress and anxiety. 

    12 Be kind to yourself

    The strategies mentioned here can take some time to work. We need to practise them regularly and in different situations. Don’t be hard on yourself if you forget to do something or if you are not feeling better right away. 

    13 Eat healthily

    Eating healthily can help us feel better. When we are stressed, many people might choose comfort foods that are not actually good for stress and overall health. As much as is possible, choose more fruits and vegetables, and drink lots of water.

    14 Avoid substance use – including smoking and vaping, caffeine and alcohol

    Some people use substances, including smoking or vaping, to cope with stress, anxiety and depression. This may appear to help reduce stress initially, but in the long run can make things worse. The brain and body develop a tolerance to the numbing effects of these substances, and people have to compensate by using more and more. That leads to additional harms and often delays the recovery from the stress. Moreover, in those at risk, substance use can lead to an addiction or a relapse in those who are in recovery. If you are in recovery and experiencing stress, it is important to reach out for help before a relapse occurs.  In general: 

    • Reduce or stop using any non-prescribed substance if you can do so safely. 
    • Take prescription medications as prescribed. 
    • Try to reduce or avoid caffeine and alcohol.
    • Seek out professional help if you cannot do it alone. 

    15 Get proper rest and sleep

    Getting enough sleep can both help reduce the amount of stress we experience and prepare us to better manage stress. Here are some quick strategies to help you get a good night’s sleep.

    • Keep a consistent sleep schedule. This going to bed and getting up at the same time each day (including weekends). 
    • Practise relaxation or meditation before bedtime. 
    • Schedule physical activity for earlier in the day.
    • Practice sleep hygiene: keep your bedroom cool, avoid any light in your room, use your bed for sleep (not reading, watching TV, using your phone, etc.), and get out of bed if you don’t fall asleep after half an hour). 
    • Talk to your doctor if these strategies don’t work — there may be other issues affecting your sleep.
    • If you drink  caffeine or alcohol, avoid them late in the day.
    • Avoid naps during the day if these interrupt your sleep at night.

    16 Stay active

    Physical activity is a great way to reduce stress and anxiety, and improve our mood and overall health. If you are self-isolated, find ways to exercise in your home. For example, use your stairs or follow an exercise video on YouTube.

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    Categories
    Investing

    15 Charts: Covid-19 Coronavirus Carnage

    Sector performance:

    True core bond funds have provided strong diversification from equities in recent periods of volatility

    Investors are extremely bearish:

    Fastest increase in volatility – ever:

    Market performance after big increases in volatility:

    Rise and fall of coronavirus cases in China and the US:

    Source: https://www.worldometers.info/coronavirus/country/us/

    Unemployment claims have already started to spike:

    Past bear markets and their recoveries:

    Source: https://awealthofcommonsense.com/2020/03/returns-from-the-bottom-of-bear-markets/

    Markets on average have historically performed OK after the VIX spikes above 40:

    Central bank rate cuts since January 2020:

    Central Bank Moves YTD

    Real GDP forecast for US:

    Real GDP forecast for Canada:

    Trajectory of Covid-19 cases around the world:

    Trajectory of spread of Covid-19 in different countries

    The current market drawdown is very, very fast:

    How long can they keep up the fight? Russia and Saudi Arabia FX reserves:

    How long did it take to erase the losses of previous market declines?

    Source: https://awealthofcommonsense.com/2020/03/how-long-does-it-take-to-make-your-money-back-after-a-bear-market/

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    Categories
    Investing

    Stop Trying to Perfectly Time the Market Bottom

    I don’t know if we’re at the bottom or if the market will fall another 20%. There are smart people out there who spend every waking minute studying the markets – some think investors should start putting money to work now, others think investors should remain in cash and wait.

      Who’s right? Who do you listen to?

      If you’re so inclined, there are a few things that might suggest a market bottom:

      • Markets no longer react (or react little) to bad news
      • Nuggets of good news start to appear in the news
      • Daily market moves (up or down) decline in range
      • VIX index starts to decline
      • 10 year US Treasury Yields start to rise

      Timing the bottom is part art, part science and a massive dose of wizardry. After all, even Ray Dalio – arguably one of the smartest investors out there – has made big mistakes during the recent bear market.

      Stop trying to perfectly time the market bottom! It’s almost impossible and it’s more than likely you’ll be wrong. The bigger question is does being wrong even matter?

      The markets are already down about 25%. We’re closer to the bottom than we were a month ago. The bottom could happen tomorrow, next week or next July. It’s almost impossible to know. Instead of striving for perfection, plan for imperfection.

      Let’s look at the last bear market that bottomed March 9, 2009. If on that date you invested $100,000 you’d have $495,270 a decade later. (See chart below.)

      However, if you invested $100,000 20% before the bottom (i.e. markets continued to decline by 20%) or 20% after the bottom (i.e. after markets already appreciated 20%), you’d have $379,657 or $414,793 respectively. Still solid results for being 20% ‘wrong’.

      Instead of striving for perfection, plan for imperfection.

      Taking it a step further, what if you entered the market more gradually? Instead of investing a single $100k lump sum 20% before the market bottom you spread out your investment over 10 days.

      This method of investing is called ‘Dollar-Cost-Averaging’ (DCA), and is a strategy aimed at reducing the impact of market volatility on a large dollar investment. In this example your portfolio value after 10 years is $410,399. This result is very close to what you would have achieved if you timed the bottom perfectly.

      Of course, maybe the timing doesn’t quite work out the same this time around. This crash is different. They’re all different. Regardless, if you have cash you want to put to work you basically have 2 choices: 1) DCA into the market on a regular basis or 2) wait until the bottom is more obvious and then invest.

      Either way, a decade from now you probably won’t notice the difference.

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      Work

      True Stories from the Frontlines of the Covid-19 Economic Collapse

      Earlier today, billionaire entrepreneur Marc Cuban offered his services to small businesses under pressure by the coronavirus. He received hundreds of responses.

      These are cries for help from small business owners as they sink below the black. These are family people supporting family people. They know every one of their employees and are forced to make heartbreaking decisions about their fate.

      Below is a selection of true stories from the frontlines of the Covid-19 economic collapse:

      I run a cell phone store and we are seeing lower and lower traffic counts. Our people are paid based on sales and with the low amount of traffic the idea of cutting hours and headcount is becoming more and more likely. I’m working the trenches with my people to keep morale high but at the end of the day morale won’t pay our bills. Thoughts?

      My wife and I own a boutique fitness studio in NYC which was ranked as one of the best fitness studios in NYC by Financial Times and other media outlets. We tried to speak to the landlords – both are billion dollar companies about rent and they refuse to work with us. Our staff relies on us for that extra income and we are giving issues because people simply are told not to go to gyms. “At this moment we are not extending any rent relief. Unless you hear otherwise, please make sure to continue paying on account as per your lease.” We have 13 instructors and staff, which we would essentially cover for as long as we can; however we cannot offer it since the landlords won’t. Our rents are roughly $20K a month. Our entire philosophy is sweat and be push beyond your limit. We are in a growth period with no investors or debt, yet these landlords do not care. We believe it is our civic duty to cut classes and capacity even more than required. We need advice on these landlords both are billion dollar companies. They have insurance for this aspect and our insurance company has a clause that actually voids are contract for something of this sort. Thoughts?

      We survived last major down turn with reducing salaries until things turned around but this is worse

      We manufacture upstream parts for oil rigs in China. 23 employees Texas company. Majorly affected our business as we can not receive parts even if we sell them. Along with Coronavirus the drop in oil prices has greatly affected us as parts we DO have in stock won’t be as needed as rigs stop drilling in the U.S. We do NOT want to lay off or even reduce hours if we don’t need to but have to make some decisions here soon. We survived last major down turn with reducing salaries until things turned around but this is worse 😦 My husband has given his life to his company and we’re sick over having to make decisions that will affect families.Any guidance is appreciated. I suggested possibly a fractional CFO to help? 

      Mark my business designs and manufactures custom awards for the NCAA College Conferences; MLB teams; ESPN; Colleges and Universities and major corporations. With the cancellation of all sporting events and major conventions and conferences my business which is usually at the peak season right now has come to a screeching halt with people trying to cancel orders and no new orders. I do not see this turning around until at least the new academic year starts in the fall of 2020. In the meantime I will need to lay-off the majority of my 31 employees. Given the skill set needed it will be difficult to recover from losing my skilled labor. What would you recommend I do?

      Here’s my question: if I have sent my employees home to work from home, and encouraged them to practice social responsibility and social distancing to do their part in reducing the spread of the virus. But instead you see on social media that they’re out partying with their friends in large groups. Being part of the problem, not the solution. How we can as employers enforce the right behavior? Can I as an employer take disciplinary actions? Or set some ground rules for our newly distant working relationship? Pretty soon the cities/states will shutdown and make this a legal enforcement, but I have educated my employees to do their part NOW! I wonder if Apple (who closed all stores) sent everyone home with “care for the world” packet with instructions. If they did, I’d love to read it! By the way, I run a social media agency so my employees and I are connected thru various social platforms.

      I buy and sell Mobile Homes, I’m doing really good, but I have to purchase agreements for the end of this month. I guess I’m having to buy and hold since in 2 weeks the economy may be in worse shape than now and not many buyers will be willing to drop $20k-$30k for each. Or should I cancel and hold my capital. (Best case scenario, I sell them both within days/weeks and continue to build up in capital during this “recession”)

      Mark, my Dad owns a small salad shop in downtown Denver and he has already laid off 3 people. Do you know how he can apply for governmental funds to help recoup his losses?

      9 yrs ago I started an education resource company. We work with Schools, Libraries, and Afterschool Programs all over the World to make STEM/STEAM accessible to students from all walks of life. As you know, many schools are shutting down and could potentially cause some big challenges for our small business. We currently are running business as usual but expect the school shutdowns to slow business drastically. Any suggestions on how to “flatten the curve” for small businesses? Thanks in advance!

      Mark if my company shuts down and there is a way for me to work from home, are they obligated to let me do my job at home so I can get paid and not laid off ??? I am receptionist for a law firm in NY and can have the calls forwarded to my home landline. Thank you anyway if my question does not get answered but I’m sure your helping so many !!!!

      We have an award-winning Italian olive oil company. For the most part we sell only online. Our product arrived before the Coronavirus outbreak. We were planning on doing wholesale and events with local businesses in addition to e-commerce but doesn’t look like that’s going to happen anytime soon. We are concerned about our e-commerce shop and launching our new products because people might be biased against italian products at the moment. Any thoughts?

      Hi Mark, I own a wholesale optical frame business that will be 50 years old next year. It is a family business, and I have been in it almost 40 of those years. I have about 80 people that are on my payroll, and I consider every decision I make as affecting 80 families. While these times are very challenging, I am most concerned about the slow down of the economy and the effects on my employees. I am hoping this is a very short term situation with this virus, and I will work through this one way or another. I do not want any layoffs, if possible. I wish you and the Mavs organization a healthy future. I am a MFFL and am struggling not being able to watch my sports. Let’s all pray for the safety and health of all American citizens and those across the world that are infected by this virus.

      I consider every decision I make as affecting 80 families

      Dear Mark Cuban, I own an event/experiential marketing company. We design and build consumer experiences for agencies, brands, pro athletes, major sports leagues and high traffic events across America. Our business model and solutions are 100% relied on sold-out stadiums and events to drive sales, loyalty and advocacy for our clients. I would be grateful to hear your thoughts on how we can save our business from going under now that all leagues and events have been cancelled.

      I’m in the juice & smoothie industry. Do you think it’s smarter for me to go ahead and close or seek to strategize around it? I’m thinking of delivery and pickup only. Also thinking of discounting and shifting towards immune boosting juices & food. I’m also considering a transparent cleaning process and preparation process via video to ease concerns. I’ve had people text and say they aren’t consuming anything they don’t prepare. Also organizing my financial docs for SBA support as it becomes available.

      So I am an independent tennis coach in Los Angeles, people everywhere are freaking out.. kids going online school- I can’t offer that since it’s an athletic game with repetitive motions. I am going to try to offer online knowledge, but my hunch says parents and players will say wait til this passes.

      I own a small vape company with 2 locations in San Antonio. The issue with the Coronavirus has been affecting me for 2 months already now. Nearly all our products (except e-liquid) comes from China and we have been unable to get inventory since the outbreak in China came on the heels of the Chinese New Year, so it was a double whammy. Sales have been severely impacted due to the inability to acquire inventory. Unfortunately, now that inventory is finally starting to slowly flow in, customers aren’t really coming in because they either think there’s no inventory to buy, or they are social distancing themselves. Worst case scenario for us. The one thing that is NOT going away are our COSTS. Rent, lights and payroll are still there, but sales regrettably are not. Thoughts?

      Dear Mr. Cuban, I own a food startup and have paid to attend the Sweets and Snacks Tradeshow in Chicago in May. We are very small and family owned. Would you recommend we still attend the show, if they hold it? Or fight to get our money back, save the expense of travel and prevent the risk of getting sick?

      I am in the process of buying a duplex. Some friends told me I should proceed while interest is low, and others suggest to not; because who would live in other half at this time? Well- curious to see what you all think about investing in real estate. Would be my first time buying a home… been planning this for a year- but now I’m confused.

      …my whole family depends on this company. Very scary times.

      I’m a consultant, contractor, and some might say idea leader in the mass participant events industry (especially racing, especially running).  We’re dead in the water, many of us may fully go bankrupt or get out.  A community that relies on people being excited to get together in a crowd and encourage each other to be healthy and happy has had its, pun horribly intended, legs cut out from under it.    Obviously you know a thing or two about getting people to get together and have a good time at a big event – what do you see as an opportunity to leverage the reasons people go to events into something that the community can use to keep the fire alive, and support us until the (???) time that events can go on?

      I’m a commercial kitchen designer that specializes in workplace dining. With everyone working from home, I am worried that companies will realize it is cheaper for them to continue this and begin closing and consolidating offices and shutting down these food programs. We were already seeing some movement toward this but thought we would have the better part of a decade before this actually happened. COVID-19 May accelerate this. How does not only my business but this industry survive especially if this becomes accelerated?

      Own a sampling company in CA, all demos cancelled until further notice. Now my 300+ employees all out of work. Going to try and take loans to keep things going as long as possible. My one year old is now out of daycare and my whole family depends on this company. Very scary times.

      I must say, these anecdotes are quite distressing to read. It really does seem like we’re hitting another ‘Great Recession’.

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      Life

      How Not to Get Sick with Coronavirus

      How can you prevent yourself from getting extremely sick from the coronavirus?

      Eat properly. Avoid stress. Exercise. Wash your hands and avoid touching your face.

      I’m sure you’ve already heard these suggestions many times.

      But there’s another secret weapon: sleep.

      A while ago I read the book “Why We Sleep”. If you haven’t read it, I highly recommend it. We all know sleep is important, but until reading this book I never realized just how much. Unfortunately, most people are chronically sleep deprived (and might not even know it).

      Because of the coronavirus pandemic, some of the discoveries in this book are especially important today. Below I have listed some key excerpts about how sleep greatly influences your immune system.

      “Routinely sleeping less than six or seven hours a night demolishes your immune system, more than doubling your risk of cancer. Insufficient sleep is a key lifestyle factor determining whether or not you will develop Alzheimer’s disease.”

      “Sleep fights against infection and sickness by deploying all manner of weaponry within your immune arsenal, cladding you with protection. When you do fall ill, the immune system actively stimulates the sleep system, demanding more bed rest to help reinforce the war effort. Reduce sleep even for a single night, and that invisible suit of immune resilience is rudely stripped from your body.”

      “Natural killer cells will effectively punch a hole in the outer surface of these cancerous cells and inject a protein that can destroy the malignancy. What you want, therefore, is a virile set of these James Bond-like immune cells at all times. That is precisely what you don’t have when sleeping too little.”

      “Dr. Michael Irwin at the University of California, Los Angeles, has performed landmark studies revealing just how quickly and comprehensively a brief dose of short sleep can affect your cancer-fighting immune cells. Examining healthy young men, Irwin demonstrated that a single night of four hours of sleep – such as going to bed at three a.m. and waking up at seven a.m. – swept away 70 percent of the natural killer cells circulating in the immune system, relative to a full eight-hour night of sleep. That is a dramatic state of immune deficiency to find yourself facing, and it happens quickly, after essentially one “bad night” of sleep. You could well imagine the enfeebled state of your cancer-fighting immune armory after a week of short sleep, let alone months or even years.”

      If you have the means, I highly recommend obtaining the book. If you don’t have the means, you can borrow it from your local public library.

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      Categories
      Investing

      Current Bear Market vs Past 2 Bear Markets

      The stock market is in the crapper. Today alone (March 12, 2020) the S&P 500 fell by 10%. That was the second worst day since 1987.

      The market is down about 25% from it’s highs. Believe it or not, the market’s all time high was about a month ago.

      How far will this go?

      I compared the current bear market to the previous two bear markets in 2000-2002 and 2007-2009. As you can see in the chart below, the current bear market (to March 12, 2020) is only about half the depth of the previous two.

        Also, the speed of the current decline is blindingly fast compared to the previous two bear markets. During the last two bear markets it took about 250 days to decline as far as we’ve declined in just 18 days.

        It’s quite unbelievable. The current decline is closer in speed to the crash that happened after the Lehman collapse – which occurred in the middle of the 2007-2009 bear market.

        Given the severity of the coronavirus impact to the real economy, the current bear market might only be half finished. The news flow continues to worsen. Still, over the past couple days I have started to pick away at a number of dividend paying stocks (like RY, TD, BCE, IBM, MMM to name a few). Because you never really know when it’s over.

        I look at it like I’m trading my capital for a permanent and growing stream of income. Yields on some dividend-growers are around 5-6%. Even if the current yield was my only source of return I’d be reasonably happy. However, the stocks I’m buying should continue to grow their dividend over time, raising the yield on my initial investment.

        I’m probably early and the market will continue to decline. As the market declines I’ll continue to buy more. The lower it goes, the more aggressive I’ll get. That means at some point I’ll start shifting my purchases to some of the big tech names that don’t necessarily pay dividends.

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        Investing

        Stock Declines from Recent Highs

        Another short post. I’m just sharing useful information as I see it.

        This bear market is quickly creating opportunities for long term investors. Many brand-name stocks are down considerably from their recent highs. Some of these companies will be devastated by the coronavirus. Others marginally impacted. Do your research.

        This bear market is quickly creating opportunities for long term investors.

        The market is still in the shitter so stocks may continue to decline in value. I would be cautious when putting new money to work. But the stocks listed below are on sale right now.

        Think about it this way: if there were a pair of Nike Air Max 1’s you had your eye on for a year and suddenly they dropped in price by 25%, would you buy them?

        As of 3pm on Wednesday, March 11, 2020 the following brand-name stocks have dropped up to 69% from their recent highs:

        Lyft: -69%
        Pinterest: -59%
        Expedia: -47%
        Snapchat: -46%
        Uber: -45%
        Tesla: -36%
        Twitter: -35%
        Disney: -33%
        Shopify: -32%
        Intel: -26%
        IBM: -26%
        Facebook: -24%
        Nvidia: -22%
        Google: -21%
        Microsoft: -20%
        Amazon: -17%
        Apple: -16%
        Netflix: -11%

        Source: Jon Erlichman, anchor for Bloomberg’s “The Open”.