How Global Events Affect Your Portfolio: A Beginner’s Guide
If you are new to investing, you might assume your portfolio – especially if it is packed with Canadian or American stocks—is safely tucked away from global drama. But the truth is, events like geopolitical tensions or economic slowdowns often send ripples through the markets, and your investments can feel the effects. Let us take a look into how these international factors influence your portfolio and how you can navigate them.
What Falling Interest Rates Mean for Your Portfolio
Last week, we explored how rising interest rates can challenge investors. This week, let us flip the script and talk about something that could actually work in your favour—falling rates. When interest rates drop, it is not just borrowers who feel the relief. If you know where to look, your stock portfolio can benefit too.
Why Do Central Banks Lower Interest Rates?
Central banks, like the Bank of Canada (BoC) or the US Federal Reserve (Fed), lower interest rates to stimulate a sluggish economy. Cheaper borrowing encourages spending and investment, helping businesses expand, creating jobs, and keeping inflation in check. Think of it as their way of giving the economy a boost when growth hits a wall.
This week, we resume our ‘Tips for Those New to Investing’ series and take a look at how rising interest rates can shake up your stock portfolio. What Rising Interest Rates Mean for Your Portfolio Interest rates might seem like background noise, but they can have a big impact on your investments. When central banks, […]
Let’s take a moment this November 11th to honour and remember those who served. Lest we forget.
November has a reputation for being a standout month for the stock market, and the numbers back it up. Over the past 30 years, the S&P 500 has posted gains in 23 Novembers, with a solid median return of 2.8%. But when it is an election year, there is always a little more drama. While pre-election uncertainty can cause some bumps, markets tend to rally once the results are in and stability returns.
This year is no different: we are not only dealing with a closely contested election, but also a key Federal Reserve (Fed) decision on US interest rates. On top of that, November kicks off the “best three months” for stocks—alongside December and January—adding to its seasonal strength.