Last Sunday the headline suggested that banks were breaking in the U.S. And as J.P. Morgan chief economist Michael Feroli said this week: “There’s an old saying: Whenever the Fed hits the brakes, someone goes through the windshield.” There was more windshield hitting as the week progressed. And as was suggested in the Globe & […]
Using defensive sector ETFs for the Canadian retirement portfolio.
In a recent post we saw that the defensive sectors were twice as effective as a balanced portfolio moving through and beyond the great financial crisis. The financial crisis was the bank -failure-inspired recession and market correction of 2008-2009 and beyond. It was the worst correction since the dot com crash of the early 2000’s. […]
U.S. banks are breaking on the Sunday Reads.
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) […]