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. ☹
Tag: cr
Weekly Update for the week ending January 19, 2024
I have often been asked what is gambling? Is not investing the same as gambling? Or similar variations of these questions. As an amateur investor myself, I remember feeling similar confusion when I first started. This week, I will attempt to answer this question for those who are considering investing in public companies or have […]
Weekly Update for the week ending February 17, 2023
Items that may only interest or educate me …. Canadian inflation data, US inflation data, … Statistics Canada’s latest Canadian Industrial Product Price Index (IPPI), prices that producers in Canada receive as goods leave the plant, reported an increase of 0.4% in January over December, while on a year over year basis, producer prices went […]
Weekly Update for the week ending February 10, 2023
Items that may only interest or educate me …. Central banks, Bank of Canada minutes, Canadian interest rate predictions, ignore the noise, Canadian jobs, Bing challenging Google? … If it seems like the Bank of Canada (BoC) and the US Federal Reserve (Fed) are common topics in this section of the Weekly Updates, you would […]
Weekly Update for the week ending February 3, 2023
Items that may only interest or educate me …. US interest rates, European interest rates, Huge job growth int the US, Slowing Canadian GDP, Big tech earnings’ misses … As expected, in a unanimous decision by members of the US Federal Reserve System’s (Fed) Federal Open Market Committee (FOMC), they increased the US benchmark interest […]
Weekly Update for the week ending January 27, 2023
Items that may only interest or educate me …. Canadian interest rate moves higher, Fed inline for a ‘soft landing,’ looking forward, big tech downsizing…. This past week, as widely anticipated, the Bank of Canada (BoC) raised the Canadian interest rate by 0.25%, bringing the benchmark rate to 4.5%. The BoC also said they are […]