Bonds may be the adult in the room, but they are certainly afraid of inflation. Bonds usually do their thing – they go up when stock markets get hit hard. They provide ballast. During periods of expected high inflation, or during rising inflation bond prices go down. That can create and contribute negative returns. The […]
How do we defend against stagflation?
It has been more than two weeks since the U.S. attacked Iran. And while the U.S. was quick to knock out much of Iran’s traditional military capability, Iran has turned to asymmetric war and has also weaponized oil, fertilizers and other materials that pass through the Hormuz Strait. With threats and some strategic attacks on […]
Got oil and gas stocks? Plus, the Sunday Reads.
This post is not a reaction to the rising political tensions in the Middle East, with the U.S. targeting Iranian nuclear sites on the weekend. Mostly, ‘got oil and gas stocks’ is a common question on this blog. You’re then ready for an oil shock. An oil shock can’t disrupt your lifestyle, in fact it […]
Canada makes the cut on the Sunday Reads.
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 […]
Canadian banks, pipelines, gold and more on the Sunday Reads.
We’re in one of those weird (but good) stages when just about everything is working. Across the board stocks are delivering. Bonds are back, meaning the balanced portfolio is back, and at all-time highs. Gold is also setting new highs. In fact it’s all kind of ‘goldilocksy’ these days. Inflation is behaving as we prepare […]