Last week on the Sunday Reads, the Fed pivot had turned into a divot. This week the markets continued to fall, pricing in more rate hikes and earnings headwinds and recession risk. The S&P 500 was down by 2.8% this week. The tech-heavy Nasdaq was down 3.8%. Canadian stocks were down 2.3%. Inflation continues to drive the bus, and the Fed actions. We’re having another look at the Fed divot on the Sunday Reads.
Here’s last week’s post …
But the banks cleared the stage on Friday for Fed Chair Jerome Powell who delivered commentary on the fight against inflation. The markets jeered Jerome. The Fed pivot (go easy on rate hikes eh) turned into the big Fed divot.
Volatily and uncertainty continued this week. All normal and expected market behaviour.
And well said …
Wealth building is simple, but the execution is not, thanks to those market corrections.
Create the largest portfolio (total return) that you can while investing within your risk tolerance level. Lower prices are good, and sometimes great. These market corrections are wonderful opportunities. Accept lower prices. In fact, embrace lower prices and keep adding on a regular schedule.
And here’s a primer on the financial planning basics.
Retirees reading this blog know how to manage the risks.
Kyle made sense of the markets on MoneySense. Check out the migration of millionaires, there’s a surprsing twist or two in that section. You’ll also find the countries on the road to financial ruin. It’s a big list. Kyle does not think that “Bitcoin fixes that”. Ha.
Scott Barlow uncovered a bearish view on the Canadian banks, courtesy of Bank of America.
Readers won’t be surprised to know that my view is to buy the big Canadian banks, especially when they come under pressure. The banks are already in good value territory, and there may (likely) be more favourable value to come.
Have a look at Twitter friend and energy enthusiast Burnsco, and his Canadian/energy-centric portfolio (with yields) …
I updated this post that shows the Ninepoint Energy Income Fund (NRGI) delivering on that potential of a 40% income boost.
CIBC World Markets estimates that large producers like Suncor, Canadian Natural Resources Ltd, Cenovus Energy Inc. and Imperial Oil Ltd. combined will generate more than $60-billion of cash in 2022.
Consider Tourmaline Oil Corp., a natural gas and oil producer: The stock’s indicated yield, based on quarterly dividend payments, is just 1.2 per cent. But thanks to three special dividends in 2022, the trailing yield is nearly 8 per cent.
I will soon update that Million Dollar Journey post, and I will include Tourmaline in the mix of the most solid energy plays. I hold Tourmaline, CNQ, Suncor, IMO and more.
More Sunday Reads
Here’s a Weekend Reads headline on My Own Advisor, that should get some attention – What the FIRE community gets wrong. Good post.
Always a must read, the week in review on Dividend Hawk.
And the greatest hits of the week from Banker on Fire. In the mix, what is the greatest factor to investment (wealth building) success?
If only we could go back in time to give our youngerselves a good slap upside the head. Bob at Tawcan offers ten lessons for 23-year old Bob.
In all honesty that time travel exercise would not work for me. I did not even consider growing up until I was 30. And at that time I was wiped out financially to zer0, by a business “partner”. I’m happy to report things are working out well, almost 30 years later.
Out quick with the divdend update for August is Matthew at All About The Dividends. It’s nice to see some good U.S. growth names in the mix. And while Matthew is counting the dividends, I’m sure he will capitalize on the income potential of selling shares (one day) in those wonderful growth names such as Apple and Texas Instruments.
You will also find an August portfolio update on My Money Maaster.
And a dividend update on Our Financial Life.
For more on the dividend front, The dividend capture strategy on Findependence Hub., from Patrick McKeough. Not my bag, but have a read.
The Fed-driven market
Check out Martin Pelletier’s latest market update. It’s a Fed-driven market.
Martin had also shared this Tweet on U.S. inflation above 5% …
A recession seems likely. And Canada is known to follow the U.S. on that economic path. But as always, anything can happen.
Be prepared. Awareness is preparedness.
Thanks for reading. We’ll see you in the comment section. Enter your email address in the Subscribe area to follow this blog. No charge 🙂
Cut The Crap Investments. Cut your fees.
You will earn a break on fees by way of many of these partnership links.
CANADA’S TOP-RANKED DISCOUNT BROKERAGE
Cut the Crap Investing readers can earn a break on fees at Questrade by way of that partnership link. At Questrade, you can buy ETFs for free.
Here’s Canada’s top-performing Robo Advisor, Justwealth.
Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.
RETIREMENT FUNDING PLANNING
The self-directed investor might consider the service provided by Mark Seed from My Own Advisor. He runs Cashflows & Portfolios where they will provide options for that optimal retirement funding strategy. That service is provided for a very reasonable fee.
If you do head to Cashflow & Portfolios, be sure to tell them Cut The Crap Investing sent ya 🙂
OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 1.65%. You’ll find some higher rates on GICs, recently updated and increased t0 3-4%. They also offer U.S. dollar accounts. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $60 to $70 every month! And that’s on everyday spending. There are no fees with …
Last month we received $75 in cashback cash. We are spending too much, ha.
While I do not accept monies for feature blog posts please click here on the mission and ‘how I might get paid’ disclosures. Affiliate partnerships help me pay the bills for this site. That will allow me to keep this site free of ads and easy to read.
Kindly use the buttons below to share this post.