On Friday, due to a sudden increase in deposit outflows and a failed attempt to raise equity, Silicon Valley Bank was shut down by US regulators. It’s called a bank run. Depositors literally “run” to the bank to take out their money. It might be a little faster these days in the digital age. How […]
The Canadian banks report on the Sunday Reads.
This past week the big Canadian banks reported earnings. It was a solid reporting season for the big banks. Profits are still healthy, though the banks are preparing for potential economic weakness as they increase their emergency funds for the potential of bad loans. When money is moved for those loan loss provisions, that takes […]
The tax-free first home savings account in Canada (FHSA).
The first home savings account goes live on April 1, 2023. It is a program to help first time home buyers save for a home, in tax-free fashion. The program can be used on top of the current Home Buyers Plan (HBP) that is part of the RRSP savings vehicle. We can also throw in […]
Warren Buffett calls 2022 a good year for Berkshire on the Sunday Reads.
Many investors look forward to the annual letter from Warren Buffett. On Saturday, Berkshire Hathaway reported earnings and Mr. Buffett offered commentary and delivered his annual letter to shareholders. The company reported record operating profits and also beat the market handily in 2022. Fearing a recession in 2023, more investors put their trust (and money) […]
Canadian pipeline stocks in focus on the Sunday Reads.
Canadian investors love their pipeline and utility stocks. And mostly, they like the big (and mostly growing dividends). We might consider the stocks as bond proxies. And certainly some capital gains can come along for the ride. I have seen recent reports suggesting that the dividends are not safe in the pipeline space. There can […]
Defensive sectors for retirement.
Defense wins championships say many sports commentators. Defense can be a big winner for retirees as well. In fact, from the massive correction known as the financial crisis (2008-2009 and beyond) using defensive sectors was twice as effective as using bonds. Then, factor in the generous and growing dividends that Canadian retirees embrace, and we […]