It is the final week before Christmas, and the markets kept us on our toes with a flurry of economic data. But rather than dive straight into the numbers, I thought a little Christmas spirit would set the tone for this Weekly Update. So, without further ado, here is an investing spin on the classic ‘Twas the Night Before Christmas’!
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Weekly Update for the week ending November 22, 2024
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.
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 2, 2024
This past week, the US Federal Reserve (Fed) announced that it would keep the benchmark interest rate at 5.5%, a move that was widely expected. However, the Fed also hinted at the possibility of a rate cut in September, as inflation cools and the labour market shows signs of slowing. The Federal Open Market Committee (FOMC) unanimously agreed to maintain the federal funds rate in the 5.25% to 5.5% range, where it has been for the past year.
Weekly Update for the week ending June 28, 2024
I am very happy with the nearly 19% gain in Microsoft’s (NASD: MSFT) share price since the start of the year. Normally, that would be a fantastic return for six months. But compared to the performance of another tech giant – Nvidia (NASD: NVDA) – it is modest. Nvidia is experiencing extraordinary times, thanks to […]
Weekly Update for the week ending June 14, 2024
Over the last few weeks, I have been writing about common questions people ask when they first start investing. From ‘What is Investing?’ to today’s topic of ‘When should I start investing?’ with a few more questions to come in the next few weeks. While answering these questions, it occurred to me: before people even […]