This week’s update kicks off with some promising news that could impact your future investments and for borrowers across the board, whether they are individuals with mortgages, personal loans, or businesses with loans. As anticipated, the Bank of Canada trimmed the Canadian benchmark interest rate by 0.25%. While it may seem like a small adjustment, it is a step in the right direction. Additionally, positive developments emerged on the US economic front, indicating a cooling job market, which often signals a slowdown in the US economy. This shift raises the possibility of a rate cut in the US later this fall.
Tag: TD
Weekly Update for the week ending May 10, 2024
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
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 January 26, 2024
While the rally that started 2023, and the year end rally got plenty of news, the start of 2024 has quietly rallied. Year to date, the three American indexes have climbed into positive territory for 2024 after an uneven start to the year. So far, the technology driven Nasdaq has already surged 4.7%, the S&P […]
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. 😊
Weekly Update for the week ending October 13, 2023
Items that may only interest or educate me ….
Canadian Economic news, US Economic news, A new investing resource, AI at work …
Apparently, mid October is when the stock markets historically start to rally until the end of the year. After 18 months of rate hikes by the Canadian and US central banks, both economies have avoided a recession. In Canada, the growth in the labour market easily surpassed expectations for the last three months. It is a similar story in the US, only a stronger labour market and more robust economy. Inflation that refuses to go away is the speed bump preventing the markets from rallying. But let’s not get ahead of ourselves. Here’s a quick look at items that caught my attention this past week.