Inflation continues to move in the right direction. While we have a ways to go to get to the Bank of Canada’s 2% target, it is good news. We can thank lower energy costs for much of the heavy lifting in the inflation report from this past week. It’s possible that lower energy prices might perculate through the economy and help the cause moving forward. With the prospect of future rate cuts, that could help the Canadian stock market and especially the high dividend space. Canada is winning the inflation fight on the Sunday Reads.
Inflation continues to cooperate in Canada. That Globe article requires a subscription, so I’ll give you some of the sensible summaries.
In October, the Consumer Price Index ( CPI ) increased 3.1% year over year, down from the 3.8% increase seen in September. The slowdown in year-over-year growth was largely attributable to the decline in gasoline prices ( -7.8 %) in October. Excluding gasoline, the CPI rose 3.6% in October, after increasing 3.7% in September.
On a monthly basis, the CPI increased 0.1% in October, after decreasing 0.1% in September.
And here’s a breakdown by sector, and you’ll find analysts like to shape the numbers to their liking …
All said, the consensus is that inflation is moving in the right direction. As always for the straight scoop, we’ll check in with Professor Tombe …
This has the potential to be good news for stocks and bonds. And that is, a sweet spot for the balanced portfolio.
TFSA limit moves to $7000 in 2024
The TFSA contribution limit for 2024 has been officially released. That limit is $7,000, up from $6,500 in 2023 and $6,000 in 2022. This marks the first time that we have seen two consecutive years of increases for the TFSA. For someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 will have $95,000 of space beginning January 1, 2024.
With the TFSA you generate that space even if you do not contribute. For the First Home Saving Account you will need to open that account to generate the space available for 2023. Have a read of the tax-free first home savings accout in Canada.
So if you qualify (for use) and think you will take advantage of the FHSA in the future, open that account.
In Making Sense of the Markets for MoneySense, Kyle looks at the inflation boost for benefits and programs in Canada.
Less pour, more poor Canadians?
Is this a recession indicator? Who knows, but …
Inflation is moving in the right direction and a less spend-happy consumer might also pitch in. Many economists are suggesting that a soft recession might be on the table in 2024. But who knows, we get what we get. And remember from last week …
Bears sound smart. Bulls make money.
Stick to your investment plan. Know your tolerance for risk.
Oil and gas ..
And here’s the performance of Canadian oil and gas stocks in 2023 …
I’ve been more than happy to add to our Canadian oil and gas stocks. I concentrate on the biggies such as CNQ, IMO, SU and TOU.
Hanging in there in the financial crisis
I’m a big fan of this post. A list of defensive stocks that held in there nicely during the 55% drawdown (decline) in the financial crisis.
Using defensive stocks in retirement is a common theme on this blog.
More Sunday Reads
At Findependence Hub, what is infinite banking and should I consider it in retirement?
Retirement Manifesto looks at the 3-legged stool of retirement. Those legs?
- Time
- Money
- Health
Fritz adds …
Therefore, I’ll be controversial and state my belief that Money is the least important of the three. Of course money matters, but chances are it will be the last remaining leg on your stool. You’ll lose the other legs first.
It’s so important to take care of our physical health and mental health. A successful retirement includes a life plan filled with activity and purpose. Work in as much exercise as your body permits. Connect with nature.
And on the subject, a post that I will have to read a few times – retirement for introverts.
A good retirement schedule for introverts include a couple scheduled social interactions a week. And schedule exercise. Don’t feel guilty saying no to things you don’t want to do. Instead, schedule positivity.
Introverts need never feel guilty. Have a short-term purpose to add value to your interactions.
The weekly wraps
We check in with Dividend Hawk as earnings season winds down. You’ll also find links to the blog posts that caught the eye of the Hawk.
Banker on Wheels weekly post included what Charlie Munger really thinks of his boss, Warren Buffett. Of course, Mr. Buffett is known as the greatest investor of all time.
I have long suggested Berkshire Hathaway as a portfolio staple, especially for retirees. That stock is back to beating the market handily, even as the company sits on a record amount of cash. Mr. B is recession-ready, but the market seems to reward that stock no matter what economic conditions are present.
Berkshire is the largest position in my wife’s accounts.
Banker also offers a link to a podcast covering – what is a safe withdrawal rate today?
At My Own Advisor, Mark looks at advice from legendary investors.
At Stocktrades.ca we’re navigating Old Age Security Payments. That’s a very good post. And Canadians are best served to discover when and how to take advantage of OAS and CPP – the Canada Pension Plan. Get that retirement cashflow plan.
And this week I had another look at the RBC Select Mutual Funds. They’ve moved from ‘not so bad’ to kind of bad.
Help yourself – cut the crap investing
Earn a break on fees by way of many of these partnership links.
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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.
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Here’s Canada’s top-performing Robo Advisor, Justwealth. You can get advice, planning and l0w-fee ETF portfolios all at one shop.
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CASHFLOWS & PORTFOLIOS
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OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account savings rates are at 2.5% and 3.5%. You’ll find some higher rates on GICs, recently updated and increased to 3-5%. They also offer U.S. dollar accounts. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …
The Tangerine Cash Back Credit Card
For October we received $50 in cash.
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 (try to) pay the bills for this site. But they don’t, ha. That will allow me to keep this site free of ads and easy to read.
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