Connecting the Dots II: US Economic Data and Fed Policy
Last week, I talked about how Canadian economic reports connect [link to sept. 13] and impact Bank of Canada (BoC) decisions, which in turn affect investors. This week, I will dive into the American economic reports, exploring how the US Federal Reserve (Fed) uses data to shape interest rates, and what that means for us Canadian investors.
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Weekly Update for the week ending July 12, 2024
Mr. Powell goes to Washington In a week of high anticipation, US Federal Reserve (Fed) Chair Jerome Powell took center stage in Congress, providing crucial updates on the future of rate cuts. During his Senate testimony on Tuesday, Powell expressed optimism as inflation approached the Fed’s 2% target, signaling potential for future rate cuts. He […]
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 December 1, 2023
Items that may only interest or educate me ….
Canadian Economic news, US Economic news, Cyber weekend, Passing of an investing giant, ChatGPT turns 1….
Well, that was quite the November to remember, wasn’t it? It has only been a day but the investor optimism that propelled the markets higher in November seems to have carried over to December as the S&P 500 had its best day of the year to keep the November rally rolling into December. This optimism largely stems from analysts’ belief that the central banks are finished raising rates. Talk has turned from when will the banks stop raising rates to when will they start lowering rates.
Hopefully investor confidence will provide a strong tailwind leading into the annual Santa Claus rally. The rally typically lasts from mid December to early January. During this period, the markets have performed well 75% of the time. Let us hope Santa Claus arrives early and stays late. 😊