Tag archives: Interest Rates

When Will Negative Interest Rates End?

Last update on Aug. 1, 2016.

Image Credit: Sangoiri / Shutterstock.com

At the beginning of every month, I brief members on how MoneyGeek's regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll explain why negative interest rates persist, and what I believe will trigger their end.

 

Performance of Regular Portfolios

The performance of MoneyGeek's regular portfolios for the month of July 2016 were as follows:

 

Last Month

Last 12 Months

Since Apr 2013

Slightly Aggressive

+4.7%

+2.9%

+55.6%

Balanced

+4.3%

+3.1%

+46.5%

Slightly Conservative

+3 ...

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Why The U.S. Interest Rate Hike Worries Some Investors

Last update on Jan. 15, 2016.

Image credit: Creativa Images / Shutterstock.com

 

At the beginning of every month, I brief members on how MoneyGeek's regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll explain how some investors see higher U.S. interest rates affecting companies and the global economy, and how such effects could influence the price of stocks and bonds.

 

Performance of Regular Portfolios

The performance of MoneyGeek's regular portfolios for the month of December 2015 were as follows:

 Last MonthLast 12 MonthsSince Apr 2013
Slightly Aggressive ...

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Challenges Facing Canadian Banks (ZEB)

Last update on March 30, 2015.

RBC Sign

 

Disclosure: I have no position on ZEB, but I do own a couple of put options on 2 major Canadian banks.

 

I’ve had the opportunity to talk to many people who manage their own investments, and I’ve found that a great number of them favour holding stocks of Canadian banks.

It’s easy to understand why. We Canadians feel that our banks will always make money. Unlike the situation in the U.S., we don’t have thousands of banks, both large and small, trying to take market share away from one another. We have the Big Five banks, whose ...

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Why An Improving Economy Could Hurt Stocks

Last update on Sept. 4, 2014.

Economy

 

By all indications, the U.S. economy is doing well. Their GDP has grown 2.8% over the past year, and their unemployment has went from 10% in 2009 to just over 6%. More companies are looking for new hires, and less people are getting laid off each week.

With the economic recovery in full swing, many people expect U.S. stocks to continue to do well. After all, an improving economy means more corporate profits, right?

Unfortunately, it's not that simple.

In this article, I'll explain why an improving economy may actually hurt stock prices.

  ...

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What's Happening To Canadian Bonds? (XBB)

Last update on March 3, 2015.

Buy National War Bonds

 

A little over a year ago, I published an article in which I argued that holding mid to long term bonds were a bad idea. In the article, I also criticized the Canadian Couch Potato for incorporating an ETF that holds such bonds in their portfolio.

In this article, I will give an update on what has happened to the bond market since then, as well as what I see happening going forward.

 

XBB Performance

For those of you who don't know, the Canadian Couch Potato is a popular blog dedicated to index investing. While they generally ...

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Weekend Roundup: Iran vs Israel, Bank of Canada, Detroit, McDonald's

Last update on July 19, 2013.

McDonald's logo

Every Friday, we bring you noteworthy news articles that affects your investments.

Israel Warned Iran About Its Nuclear Program

Why are gasoline prices going up? Because oil prices are going up. But then why are oil prices going up? One contributing factor is this rhetoric from Israel. If war breaks out between Israel and Iran, you'll see oil prices shoot up dramatically. Traders have bought oil on this possibility - hence the rise in oil prices.

Bank Of Canada Kept Rates And Outlook Steady

The Bank of Canada (BoC) controls the short term government interest rate, which in turn affects ...

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