The Bank of Canada made another big 50 bps (0.50%) rate cut this past Wednesday. Our economy is weak (to be kind), and massive numbers of mortgage holders will face a rate reset in 2025 and 2026. We can’t afford any additional weakness that rate cuts are designed to create. Inflation is well under control […]
Canadian oil stocks slip, and a look at the Loonie on the Sunday Reads.
The world is awash in oil and gas. Lower energy costs are a big plus for the inflation fight allowing for additional rate cuts. That can provide a boost for the global economy and for stock and bond markets on the whole. But those lower oil and gas prices will suppress the the earnings and […]
Boost the spend rate in retirement on the Sunday Reads.
Cut The Crap Investing recently looked at the go-to chart on creating retirement income. The post looked at sustainable spend rates. The 4% “rule” suggests that you can start at a 4.2% spend rate, and then increase spending each year to adjust for inflation. That protects your spending power and lifestyle in retirement. That said, […]
Canadian stocks are on a win streak, on the Sunday Reads.
Canadian stocks posted a 3.33% gain for the week. It was the second consecutive week of solid gains after the near panic on Monday August 5th. U.S. stocks were up 4% while international stocks were up 3.5%. It was a week of fireworks and champagne cork popping for equities. It’s OK to celebrate, especially if […]
The path of rate cuts, plus bonds ‘spike’ on the Sunday Reads.
In the Sunday Reads we’ll look at the expected path to rate cuts in Canada. The most aggressive estimates have the Bank of Canada down to 2.75% in 2025. We’re currently at 4.5%. There is also the likelihood of rate cuts in the U.S. in 2024 due to some softer economic reports this past week. […]
A good first half for 2024 on the Monday Reads.
And we’re at the halfway mark for 2024 for sector and stock market performance evaluation. In Canada, it’s energy in the lead with materials coming up the inside looking to challenge. Yup, it’s still inflation fighters leading the way. Interest rate sensitive stocks continue to stumble and trip and cause their owners some considerable stress. […]