The Most Important Security in Canada February 2024
Generally, when inflation is high and volatile, stocks and bonds have a positive correlation meaning that their prices move in the same direction. When inflation is low and stable, stocks and bonds tend to have a negative correlation.
Bond Yields Always Fall before First Rate Cut January 2024
Bond yields always fall before the Bank of Canada (BOC) pivots to cut interest rates. This is occurring today just as it has over the past 50 years. Without fail, the 10 Year Government of Canada bond yield has fallen in the months before each pivot to rate cuts since...
Huge One Day Stock Changes December 2023
Huge one day stock rallies are surprisingly more common than expected during bear markets. Also, as would be expected, huge one day stock declines are more common in bear markets.
Finding Income November 2023
Two years ago, short term interest rates were at 65 year lows which made it more difficult for fixed income investors to earn a decent income. Couple this with the fact that the average investor had an aversion to investing in long term bonds because of the belief that higher...
Before the First Cut October 2023
The end of the Bank of Canada’s (BOC) rate hiking cycle has historically been a good time to own Canadian stocks but an uncertain economic outlook and stretched valuations could dampen upside this time.
REITs vs Interest Rates September 2023
The prevailing line of thinking in the investment world is that rising interest rates will spell doom for Real Estate Income Trusts (REITs). Historically, the opposite has happened.
Markets Size Change Over Time August 2023
Can anyone predict the future? Well, anyone can make predictions and while they can be entertaining, rarely are they insightful. Every forecast begs questions about its assumptions and invariably there are enough disagreements to discredit even a wise sage.
Strength Through Dividends July 2023
As the flight to quality reached a fever pitch, even the highest quality dividend paying equities were ignored in favour of money market funds and bonds last year and earlier this year. Nevertheless, there were investors who continued to add new cash to their portfolios, seeking out the largest and...
Time for Small Caps? June 2023
Since 1957 Canadian large cap stocks have generated an average annual total return of 9.9%. Over the same time period, Canadian small cap stocks earned an average annual total return of 14.0%.
Why Household Debt Will Not Kill The Economy March 2023
While concerns over the cost of rising interest rates and their impact on capital market expectations is certainly valid, history has shown that for Canadians in particular, it’s not the nail in the coffin as far as recessions go.