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Category Archives: Updates

Weekly Update for the week ending September 13, 2024

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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

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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

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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.

Weekly Update for the week ending August 23, 2024

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Inflation and pricing

It was a relatively quiet week for the markets in terms of economic news. In the USA, investors focused on the mid-week release of the minutes from the Federal Reserve’s (Fed) last Federal Open Market Committee meeting and Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium, at the end of the week. These two events are crucial in indicating whether the Fed plans to lower the US benchmark rate at their September meeting.

In Canada, the biggest economic headline was the July Consumer Price Index (CPI) inflation report, which reveals whether inflation is rising or falling. Spoiler alert: it is still falling. 😊 But here is an important point—just because inflation is down does not mean prices are lower. It only means that the pace of price increases has slowed.

Weekly Update for the week ending August 16, 2024

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August bounce back
The markets kicked off August with a stumble, culminating in a sharp meltdown on August 5 that saw the three American indexes fall by more than 2.5% each. Fortunately, this proved to be a one-day selloff. Investors quickly reassessed the situation, recognizing that the American economy remained resilient despite signs of a weakening labour market. Over the following week, investor confidence grew, and the markets gradually recovered, with the four major North American indexes recovering most of their earlier losses by the end of the previous week.

This past week, the recovery continued as favourable economic data rolled in. The US, with the world’s largest economy, appears headed for a soft landing, where inflation continues to fall without triggering a recession. The latest reports showed that inflation is cooling, while retail sales remained strong, though more moderate than a year ago. The cooling job market provides further support for the Fed to start lowering the benchmark rate, although the Fed’s stance on future rate adjustments is data dependent.

Weekly Update for the week ending August 9, 2024

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This past week began on a shaky note. Weak economic data and disappointing corporate earnings from the previous week fueled fears of a potential recession in the US, the world’s largest economy. A recession—a period of significant economic slowdown marked by declining business profits, rising unemployment, and reduced consumer spending—can spark widespread anxiety. This unease led to a sharp selloff on Monday, starting in Japan and sweeping westward through European markets before hitting North America. By the end of the day, the S&P 500 (S&P) saw its biggest drop in nearly two years, the Dow Jones Industrial Average (DJIA) plunged by 1,000 points, and the tech-heavy Nasdaq Composite index (Nasdaq) recorded its worst start to a month since 2008.