As I mentioned earlier this month [link to Sept 6], September usually gets a bad rap as one of the toughest months for stocks. But this year? It has been a pleasant surprise! Thanks to anticipation around the US Federal Reserve’s (Fed) first rate cut since the COVID-19 pandemic began in March 2020, the market’s mood shifted. Add in the Bank of Canada’s (BoC) third rate cut in three months, and it has been a win for Canadian investors too. It seems like both central banks feel they are finally winning the inflation battle—if it is not already won.
Monthly Archives: September 2024
Weekly Update for the week ending September 20, 2024
Connecting the Dots II: US Economic Data and Fed Policy
Last week, I talked about how Canadian economic reports connect [link to sept. 13] and impact Bank of Canada (BoC) decisions, which in turn affect investors. This week, I will dive into the American economic reports, exploring how the US Federal Reserve (Fed) uses data to shape interest rates, and what that means for us Canadian investors.
Weekly Update for the week ending September 13, 2024
Connecting the economic dots
You might have noticed that I always highlight economic data in my Weekly Updates. I get it—it can seem a bit dry, and you might wonder why I make it such a priority. Honestly, before I started investing, my eyes glazed over when I saw all those reports too! 😊 But once I began to take investing more seriously, I started paying attention to what really moves the markets, especially those sharper swings.
When you are new to investing, reports like labour data, inflation stats, and economic growth figures might feel overwhelming. But once you understand how they fit together, it all starts to make sense—especially when it comes to how the Bank of Canada (BoC) makes decisions that can directly impact your investments.
Weekly Update for the week ending September 6, 2024
September has a long-standing reputation for being one of the worst and most turbulent months for the markets, often marked by increased volatility. This phenomenon is often referred to as the “September Effect.” This year appears to be no exception as investors try to gauge the Federal Reserve’s next moves based on the latest economic data. Historically, it has been the worst-performing month for the indexes. In fact, from 1950 to 2023, the S&P 500 (S&P) averaged a decline of about 0.5% in September, making it one of the few months where the index consistently posts negative returns.
Weekly Update for the week ending August 30, 2024
Since 2019, Nvidia’s (NASD: NVDA) share price has soared 3,476%, thanks to its pivotal role in supplying the heart of artificial intelligence (AI). Few companies wield as much market influence as Nvidia, and anticipation was sky-high leading up to its earnings release. Investors were on edge, eager to see whether Nvidia would meet or surpass expectations.