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 […]
Moving in slow motion on the Sunday Reads.
Moving in slow motion might be a fitting description for the success of central bankers in their attempt to cool economies and add more weight to the inflation fight. We might go as far to suggest that rate hikes have had almost no effect on inflation to date. Very robust and shocking employment gains in […]
Jerome Powell calls on the bulls in the Sunday Reads.
South of the border the Fed ratcheted down the rate hikes, and offered a more modest 0.25% hike. Fed Chair Jerome Powell then offered a somewhat confusing or dismissive press conference. Powell had no problem waving his red cape to call out the stock market bulls. And show up they did. U.S. stocks were up […]
The Bank of Canada goes on a rate hike hiatus, on the Sunday Reads.
This week, the Bank of Canada boosted rates by another 0.25% and signalled that they will now pause and evaluate. I’ve been calling that the rate hike hiatus. As I touched on two weeks ago, inflation is moving in the right direction and the consumer is holding up quite well. It’s a Goldilocks scenario, for […]
Rosey recession watch sets up the year of the balanced portfolio.
Here’s a very good post from David Rosenberg in the Globe & Mail. We know that the inverted yield curve has predicted 8 of the last 8 recessions. Yes, we are in the midst of the most drastic inverted yield curve(s). Mr. Rosenberg finds that the leading Conference Board Confidence Indicator is even better at […]
The race to kill inflation, on the Sunday Reads.
South of the border, the Fed raised rates by 0.50%. The hike was as expected. It was a step down from three consecutive 75 bps hikes. Canada has followed a similar rate trajectory in its battle to kill inflation. The markets initially cheered a favourable inflation reading (Tuesday) in the U.S. And then Fed chair […]