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Weekly Update for the week ending May 10, 2024

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Part of my investment philosophy is to let winners run rather than selling early to lock in gains. This approach has been beneficial with stocks like Nvidia (NASD: NVDA) and Shopify (TSE: SHOP). However, I reduced my holdings in each after they came to represent over 40% of Portfolio 1 and Portfolio 3, respectively, to manage increased volatility.

On the flip side, this strategy has sometimes resulted in missed opportunities for greater profits, as was the case with Illumin Holdings (TSE: ILLM). After surging from C$2.00 to C$32.00 per share in less than a year, it plummeted to C$1.64. Although I made a profit, I could have made more had I sold earlier. ☹

While I generally prefer to let winners run and even expand my investments in them, I recognize there are times when it is wise to sell part of a stake, especially in smaller, more volatile companies.

Weekly Update for the week ending May 3, 2024

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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 😊. 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.

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Weekly Update for the week ending April 19, 2024

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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.

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Weekly Update for the week ending March 29, 2024

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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. 😊