News & Updates

Humans have three ways of dealing with conflict: fight, flight, or freeze. In this bear market, many investors might be in freeze mode, keeping cash on the sidelines as global markets continue their rough ride. In the first six months of 2022, the S&P 500 was down -20.6% while the Nasdaq dropped -29.5%. The S&P/TSX, MSCI Europe, and MSCI EAFE also fell -11.1%, -15.5%, and -21.0%, respectively during this same period.[1] Investors holding on to cash may be waiting to see what will happen with the following issues.

It would be nice to know that answer but when it comes to market timing, one of Zoe’s favourite quotes comes to mind: “You are either lucky or you’re wrong.” Big stock downturns are normal, albeit unpleasant. Since 1950, the S&P 500 index has fallen more than 20% from its high on ten different occasions.

Wow, like most, we got a pretty good shock this past weekend at the gas pump and the grocery store. Inflation in Canada is at a whopping 5.7%. The Bank of Canada’s (BOC) 2% target rate seems to be way in the rear-view mirror and to add insult to injury, the BOC boosted interest rates by 0.50% last week…make it stop. 

With the recent rise in Bitcoin, we have seen a re-emergence of neanderthal investing articles. “If you had bought $X of Bitcoin in year Y it would be worth $Z today.” These articles emerge whenever a stock or an asset experience a meteoric rise and ignore all context and everything we know about human behaviour

TFSA and the CRA: The CRA is the ultimate record keeper of your TFSA contributions over time. They are also the body that determines if you have overcontributed and need to be fined. However, they are not good at keeping their records up to date.