Skip to main content

Tag: ALV

Weekly Update for the week ending May 3, 2024

Posted on by

This past week, the US Federal Open Market Committee (FOMC) convened to set monetary policy, most notably the US benchmark interest rate. These decisions have a profound influence on investors in both Canada and the United States. Generally, lower interest rates can lead to higher stock prices and a calmer market environment, and happier investors šŸ˜Š. Conversely, higher rates can introduce volatility and encourage a shift towards more conservative investments.

Beyond investor sentiment, the FOMC’s decisions on the US benchmark interest rate can significantly influence the actions of the Bank of Canada (BoC) with regards to Canada’s interest rate. The relationship between these rates is critical because a substantial difference can have several repercussions on the Canadian economy.

…..

Weekly Update for the week ending April 19, 2024

Posted on by

April has not been the easiest month for us investors. We have seen losses across the board, with each week bringing its own set of challenges. The first week the markets dipped following strong US labour data, suggesting the economy might be too warm, which could deter the US Federal Reserve (Fed) from lowering interest rates. In the second week, higher-than-expected inflation data further soured the mood, heightening concerns about persistent high prices. This past week, comments from various Fed officials have added to market jitters. Fed Chair Jerome Powell emphasized that the current 5.5% interest rate could stay in place “as long as needed” to manage inflation, a stance echoed by other officials who see no rush to cut rates.

….

Weekly Update for the week ending April 5, 2024

Posted on by

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 expectationsā€”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 ā€œmuch too soon to think about cutting interest ratesā€ 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. ā˜¹

Weekly Update for the week ending March 1, 2024

Posted on by

The North American stock markets have had a good run through the first two months of 2024. March has a tough act to follow but the month has a reputation for being a strong month for the North American stock markets, with historical trends showing positive movement more often than not. But remember, past performance is not a guarantee of future results.

Investor enthusiasm over all things related to artificial intelligence should continue to drive the markets higher. With fourth quarter earnings almost over, investors will now cast their eyes towards the Federal Reserve. Each bit of economic news, as well as speeches from Fed officials, will be dissected in an attempt to determine when the rates could begin to fall. I am sure there will be lots of ups and downs with each bit of news, hopefully a lot more ups than downs. So, buckle up, the rollercoaster is about to leave the platform.

Weekly Update for the week ending November 10, 2023

Posted on by

Canadian Economic news, US Economic news ā€¦

It is earnings report season again, this time for the third quarter. The number of companies reporting in the three portfolios has been increasing steadily, reaching 35 this week. I admit it can cause oneā€™s eyes to glaze over, however, these reports are crucial to understanding how the companies you own are faring.

With all the reports this past week, fortunately, there were no key economic reports in Canada or the US this past week. Otherwise, this Weekly Update would have gone on forever, writing it certainly seemed like it did. Sigh! šŸ˜Š