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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 23, 2024

Inflation and pricing

It was a relatively quiet week for the markets in terms of economic news. In the USA, investors focused on the mid-week release of the minutes from the Federal Reserve’s (Fed) last Federal Open Market Committee meeting and Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium, at the end of the week. These two events are crucial in indicating whether the Fed plans to lower the US benchmark rate at their September meeting.

In Canada, the biggest economic headline was the July Consumer Price Index (CPI) inflation report, which reveals whether inflation is rising or falling. Spoiler alert: it is still falling. 😊 But here is an important point—just because inflation is down does not mean prices are lower. It only means that the pace of price increases has slowed.