The Destruction of the Canadian Investor


Dear Readers, 


There are many great things about being Canadian. Sadly, being an investor isn't one of them. Not anymore.


Last week, we revealed the shocking truths of high frequency trading (HFT). I saw some great comments and discussions from you guys and very thankful for your contributions. 


This week, I am going shed some light on why the TSX Venture is failing.


Most of you probably invested in a company listed on the commodities-focused TSX Venture within the last year, which means most of you probably lost some money.  


On a year-over-year basis, the TSX Venture is down 30%, trading volume down around 25%, and transactions are down more than 45%.  


While the commodities and precious metals market have slumped due to falling prices and rising costs, many of the companies that have fallen have not dropped because of core fundamentals.  


The TSX Venture as a whole has succumbed to more than just a down-dip in metal prices or the rises in costs of production and exploration. This letter is intended to address some of the issues that have led to the crash of the TSX Venture. 


These issues include how the big banks are forcing juniors out of the market, just like they have in the US, and also how one regulation has turned into a death spiral event leading to other regulations that collectively are crushing our Canadian market.