In the first quarter of 2024, the four major North American indexes – the Toronto Stock Exchange Composite Index (TSX), the S&P 500 Index (S&P), the Dow Jones Industrial Average (DJIA), and the Nasdaq Composite Index (Nasdaq) – successfully continued the upward trajectory initiated by the rally that started in November 2023. Much like last year, the first quarter closed on a high note, hopefully paving the way for another robust year of corporate growth and rising share prices. Fueled by technological advancements, strong corporate earnings, and hopes of interest rate cuts, the market’s resilience might signal more good news for investors.
Author Archives: 1investor
Weekly Update for the week ending April 12, 2024
This past week was pivotal for investors. The latest US inflation numbers, measured by the Consumer Price Index (CPI), could swing the door open for a possible US interest rate cut in June – if it indicated that inflation was on the decline. Conversely, flat, or rising inflation rates could extinguish any hopes for a rate reduction in June.
In this week’s edition of our series for new investors, I will cover a few of the risks beginners should be aware of when they start investing. Alongside the latest US inflation report and what it meant for investors, let’s see what else happened this past week….
Weekly Update for the week ending April 5, 2024
Navigating the world of investing often mirrors the emotional rollercoaster experienced by hockey fans as the season nears its end and the draft lottery looms. The dilemma? To wholeheartedly support your team’s victories or, paradoxically, hope for losses if it secures a superior draft spot. This dichotomy is strikingly similar in the realm of investments, where economic news can simultaneously herald positive developments and trigger investor apprehension. Take, for example, the recent labour report from the US: It showed job growth and wage increases surpassing expectations—a testament to a thriving economy and a win for the workforce. Yet, for those keen on seeing interest rates decline, this was a setback. Rising wages, after all, can exacerbate inflationary pressures. The statement by a Federal Reserve official that it is “much too soon to think about cutting interest rates” effectively quashed any hopes for an imminent rate cut, epitomizing the scenario where robust economic health can dampen prospects for those favoring lower interest rates. ☹
Weekly Update for the week ending March 29, 2024
As we headed into March, buoyed by a strong rally, I held high expectations. Known historically as a favorable month for North American stock markets, and with a wealth of positive economic indicators on the horizon, it seemed the stage was set for significant market advancements. Analysts in both Canada and the USA were looking for data indicating robust economies, stable job markets, and decreasing inflation rates going into the month.
Indeed, the March reports did not disappoint. They painted a picture of strong economies and steady job markets across North America, alongside growing investor optimism and diminishing inflation. These developments have heightened investors’ expectations for interest rate cuts by the central banks of Canada and the US come June. Furthermore, with April historically being a strong month for the markets (though it is important to remember that past performance does not guarantee future results), the stage seems perfectly set for a bullish April.
Let us hope the bulls take the lead and run with it. 😊
Weekly Update for the week ending March 22, 2024
A friend of mine, let us call him the Stock Swami, jokingly (I think) asked me if it would be safer to keep your money under your mattress to avoid losing money during stock market crashes. This is a question I hear a lot from new investors, and it is a valid concern. There is […]
Weekly Update for the week ending March 15, 2024
Inflation jitters sent US markets south, while the TSX extended its weekly winning streak. Let us take a look at what happened and how it impacted the three portfolios. Plus, we will shift gears and explore the hot topic of hybrid electric vehicles – are they a sound alternative to full on electric vehicles or just a pit stop on the road to full electrification? This week I will take look at their gaining popularity and investment potential in this week’s market update!
So, without further ado, let’s see what happened this past week….