Tag: economy
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![Fed hawkish pause, regional banks tanks, and gold nears record highs!]()
Fed hawkish pause, regional banks tanks, and gold nears record highs!
Well what developments in the past 24 hours. Investors and traders were anticipating the Federal Reserve meeting. A 25 basis point hike was expected along with some statement hinting at no more interest rate hikes. Well, the market got the 25 basis point hike (the Fed’s 10th rate hike in a row), and some sort…
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![Does this weeks earnings point to a recession?]()
Does this weeks earnings point to a recession?
The US stock markets continue their chop fest and range as the rally to start 2023 is set to be tested by first quarter earnings. Investors have been expecting earnings to be somewhat mixed or tepid as higher interest rates begin showing their impact on the real economy and resulting in an economic slowdown or…
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![Gold markets are on fire, a week away from VRIC 2023]()
Gold markets are on fire, a week away from VRIC 2023
With the beginning of a new year, I look forward to Cambridge House’s Vancouver Resource Investment Conference. A conference which has played a major part in my investing/trading career. It was the first ever financial conference I attended way back in the day when I was a young man. At that time, I was one…
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![Bank of Canada raises interest rates by 0.75 percent]()
Bank of Canada raises interest rates by 0.75 percent
The Bank of Canada raised its key interest rate by 0.75 percent (three quarters of a percentage point) bringing the central bank’s key rate to 3.25%. This rate hike matches up with market and economist expectations. No surprise. Since March 2022, the Bank of Canada has increased rates by 300 basis points, the fastest pace…
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![The Fed raises rates by 75 basis points for the second consecutive time. What does this mean for stock markets?]()
The Fed raises rates by 75 basis points for the second consecutive time. What does this mean for stock markets?
In one word: bullish. The stock markets are loving the hawkish Fed. The Federal Reserve has raised interest rates by 75 basis points for the second consecutive time. The stock markets largely had this rate hike priced in. Fed futures had a near 100% probability of a 75 basis point hike and the Fed tends…
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![Is this the best way to invest in gold and silver?]()
Is this the best way to invest in gold and silver?
We have a major week ahead with the Federal Reserve and potential confirmation of a US recession. Is now the time to look at gold? It gets a bit more complicated. Sure, money can run into gold when there is fear and uncertainty, but there are some typical money flow signs that I watch for.…
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![Have US stock markets established their bear market lows?]()
Have US stock markets established their bear market lows?
Have US stock markets bottomed? From a technical analysis perspective: yes, there is a very good chance they have. From a fundamental perspective: it gets complicated. If we consider fundamentals, there is a lot which can weigh in on markets. Some things to consider are: Earnings, China, Russia, Inflation, Interest Rates, Supply Chain Issues, European…
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Berkshire Hathaway (BRK-A.NYSE): Warren Buffett is my hero but he got this detail wrong
“Nothing can basically stop America,” stated Buffett at Saturday’s virtual shareholder meeting. “The American miracle, the American magic has always prevailed and it will do so again.” Buffett’s opinion (about the resiliency of the U.S. economy) has been right for six decades. Why wouldn’t it continue to be right?
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![Friday Recap: Canada’s Economic Slowdown]()
Friday Recap: Canada’s Economic Slowdown
Bond Sales Reach Record Highs With central banks cutting rates and yields dropping, investors have fled to other alternatives, primarily corporate bonds to get returns. Over $2.43 trillion worth of bonds have been sold this year so far, and many have scored double-digit returns on bond sales. For instance, here’s a story about a UBS…
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![Long and Short (Ep 2): The rate cut and what it means]()
Long and Short (Ep 2): The rate cut and what it means
For the first time since 2008, the Fed cut rates by 25 basis points to boost economic growth. In a perfect world, a lower cost of borrowing would’ve made the market soar. But stocks fell yesterday, and they fell today. It’s complicated. Let’s get into it: Interest rates and the economy The interest rates set…
