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 […]
Goldilocks says ‘hold the recession’ on the Sunday Reads.
The pending recession might turn out to be the most advertised and expected recession in history. It might be so expected that it doesn’t happen. Or perhaps the economic shifts are now happening in slow motion. We appear to be in a Goldilocks scenario with falling inflation and a consumer that refuses to cooperate with […]
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 […]
Building the big dividend retirement portfolio with defensive Canadian ETFs.
There are a few reasons to play defense. A retiree or near retiree can benefit from less volatility and a lesser drawdown in a bear market. If your portfolio goes down less than market, and there is a greater underlying yield, that lessens the sequence of returns risk. You have the need to sell fewer […]
The Bank of Canada goes easy, on the Sunday Reads.
The Bank of Canada raised rates 50bps (0.50%) this week, compared to the expected 75 bps increase. That helped the narrative that was developing last week when investors had a week off to recover. Stocks had another good week, up 3% or more. U.S. stocks are up about 9% over the last month. There is […]