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 […]
Rate hikes and how to prepare your portfolio for 2023 on the Sunday Reads.
In Canada, the headlines and airwaves were focused on the Bank of Canada and their rate hike decision. As you likely know, the BoC increased rates by 50 basis points or 0.50%. Many were expecting a 25 bps hike, but recent GDP growth put a nail in that coffin. In the U.S., good news was […]
What the heck has been going on? The Sunday Reads.
I was back Making Sense of the Markets for MoneySense as Kyle is away on a wonderful family vacation. I offered a wrap on the inflation fight and the market reaction. Stock markets had a very strong week, but it was much ado about nothing. Central bankers confirmed plans that were already announced, but it […]
Sticky inflation and calm markets on the Sunday Reads.
Stocks were relatively flat for the week as the market makers weighed the potential of a Fed pivot vs the risk of a recession or at least, economic weakness. Fed officials keep reminding investors that they are serious about raising rates and keeping rates higher as long as is needed to tame inflation. Inflation is […]
U.S. inflation “cools” as stock markets rip on the Sunday Reads.
Stocks surged on Thursday with their best day since 2020 after a key inflation indicator came in softer than expected. The S&P 500 was up 5.5% while the Nasdaq Composite was 7.3% higher. It was the biggest percentage jumps for the S&P and Nasdaq since spring 2020. Canadian stocks were up almost 3%. The Consumer Price Index, a key inflation gauge, […]
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 […]