A Government Shutdown Doesn’t Mean a Market Meltdown
This past week, funding for the US government expired at midnight on September 30. With Republicans and Democrats dug in, no deal was reached to pass a temporary spending bill and avert a shutdown. As a result, the government was suspended for the 15th time since 1981, halting scientific research, financial oversight, environmental cleanup, and a wide range of other services. About 750,000 federal workers were ordered to stay home, while others – including the armed forces and Border Patrol agents – continued working without pay (they’ll be paid retroactively once operations resume). A shutdown usually doesn’t send markets into free fall, but it does tend to stir up volatility on both sides of the border. So, let’s take a look at what a US government shutdown actually is and what it means for us investors.
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Weekly Update for the week ending September 19, 2025
Decisions, Decisions
This week, all eyes were on the US Federal Reserve (Fed) and the Bank of Canada (BoC) as both central banks faced the same question: should they finally ease up on high interest rates? With inflation cooling, jobless claims ticking higher, and consumers growing cautious, markets were betting heavily on cuts – and both banks delivered. For the Fed, it was the first cut since December 2024, while the BoC hadn’t lowered its benchmark rate since March 2025.
What Happens When Central Banks Cut Rates?
When central banks cut rates, it’s like turning down the interest on your credit card or mortgage – borrowing gets cheaper, and spending gets easier. But depending on whether it’s the BoC, the Fed, or both, the ripple effects for us investors can look a little different.
Weekly Update for the week ending August 1, 2025
Liberation Day, part 2
President Trump kicked off a new wave of tariffs this week, reigniting global trade tensions. The move came just days after progress with the European Union (EU) and Japan had boosted market optimism – but that optimism is now giving way to concern.
The latest action includes a sweeping 35% tariff on Canadian goods not covered by CUSMA, which caught many by surprise. It also targets exports from Brazil, India, and other trading partners, with tariffs ranging from 10% to 25%. These new duties hit a wide range of products, from industrial parts and electronics to everyday consumer goods, raising fears of a broader trade war.
Weekly Update for the week ending July 18, 2025
Tariff Scorecard: Keeping Score in the Latest Wave of Tariffs
Tariffs are once again front and centre in investors’ minds. Since returning to office, President Trump has hit several major trading partners with new levies and rolled out a wave of new threats. The list is growing fast, with entire countries and key sectors in the crosshairs, making it tough to keep track of what’s actually in effect and what’s still just a warning shot.
So, here’s a quick recap.
Weekly Update for the week ending March 28, 2025
Economists and analysts have been bringing up the word ‘stagflation’ lately – and that’s not a good thing. It’s an economic scenario no one wants, where growth stalls while prices keep rising. The term might sound complicated but understanding it now can help you avoid surprises later. So this week, I thought I’d go over what stagflation is and explain it in a way that’s easy to understand.
What is Stagflation?
Imagine you’re driving in bumper-to-bumper traffic – moving painfully slow – but at the same time, your car’s engine is overheating. That’s basically stagflation in economic terms: the economy isn’t growing much (or at all), but prices keep rising. Normally, inflation happens when the economy is booming, and a slowdown helps cool things down. But stagflation flips the script, combining slow growth with rising costs – something that can leave consumers squeezed and businesses struggling.
Weekly Update for the week ending March 7, 2025
With the US implementing tariffs on Canada and Mexico this past week – and Canada immediately retaliating, while Mexico held off implementing tariffs for now (as of the time of this post) – I wanted to dig deeper into how tariffs actually work. Beyond just driving up prices, tariffs play a significant role in trade and investing. So, what exactly are tariffs? Let’s take a look.