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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 October 11, 2024

Last week, I touched on why October has a bit of a reputation as a volatile month in the markets—historical crashes, rapid recoveries, and plenty of unpredictability. So, what should you expect for your portfolio this October? Let us take a look.

First off, volatility does not necessarily mean disaster. In fact, it can create opportunities, especially for long-term investors. If you see sharp drops in certain stocks or sectors, it could be a chance to add to your positions or get into new ones at discounted prices. But timing the market is tricky—so keep your long-term goals in mind (you have set some long-term goals, right?) rather than reacting emotionally to short-term swings.

Weekly Update for the week ending August 30, 2024

Since 2019, Nvidia’s (NASD: NVDA) share price has soared 3,476%, thanks to its pivotal role in supplying the heart of artificial intelligence (AI). Few companies wield as much market influence as Nvidia, and anticipation was sky-high leading up to its earnings release. Investors were on edge, eager to see whether Nvidia would meet or surpass expectations.

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 […]