Money Sense

[Anonymous]

Canadian pipeline operator TC Energy reported a slightly better-than-expected quarterly profit on Friday, helped by rising demand for its energy transport services as oil and gas prices surged after Russia's invasion of Ukraine.

[Anonymous]

The Dow gained 900 points yesterday on news that the Fed will not raise interest rates 3/4 of a point. A half point had already been baked in.

[Anonymous]

Stocks plummeted on Wall Street on Thursday, erasing a rally from a day earlier, as markets assess the fallout from the Federal Reserve's stepped-up fight against inflation.



The Dow Jones Industrial Average fell 1,063 points, or 3.1%, to close at 32,997. The S&P 500 fell 3.6%, closing at 4,146, with more than 95% of companies listed on the benchmark index in the red. The tech-heavy Nasdaq fell even more sharply, closing almost 5% lower.



It was the second-worst day for the S&P 500 since June 2020, and the worst day for the Nasdaq since that month, according to FactSet.

[Anonymous]

Canada's jobless rate dropped to 5.2 per cent, a modern low that all but guarantees another outsized increase in interest rates when policymakers at the Bank of Canada end their next round of deliberations on June 1.



If you haven't locked in your mortgage interest rate, do it now.

[cc]

"Competition Bureau looking to block 26B Rogers - Shaw deal"



Sure hope they do - we need more competition what with having the highest internet & tv costs anywhere .. pretty arrogant for these 2 to try it



Harper tied to bring in US firms to give us competition & lower prices  .. it didn't materialize, I forget why & the details

[Anonymous]

"Competition Bureau looking to block 26B Rogers - Shaw deal"



Sure hope they do - we need more competition what with having the highest internet & tv costs anywhere .. pretty arrogant for these 2 to try it



Harper tied to bring in US firms to give us competition & lower prices  .. it didn't materialize, I forget why & the details

I hope they block the deal.

[Anonymous]

I don't know. We will see what the Seoul brother has to say about this.



Financial crisis more likely than recession amid market mayhem, says CIO

[media]

[Anonymous]

Real estate markets saw steep declines on both coasts in April, with Vancouver sales down 34.1 per cent and Halifax off 25.5 per cent. The country's most populous real estate region, Toronto, outdid both with a posted 41 per cent drop in sales.

[Anonymous]

Real estate markets saw steep declines on both coasts in April, with Vancouver sales down 34.1 per cent and Halifax off 25.5 per cent. The country's most populous real estate region, Toronto, outdid both with a posted 41 per cent drop in sales.

That drop happened fast.

[Thiel]

Three words: Interest rate increases.

[Anonymous]

I don't know. We will see what the Seoul brother has to say about this.



Financial crisis more likely than recession amid market mayhem, says CIO

[media]

[Anonymous]

The Dow Jones Industrial Average fell for a sixth straight day Thursday, as traders failed once again to find their footing in an increasingly volatile market.



The S&P 500 hit a new low for 2022, closing more than 18% off its 52-week high and steering closer toward bear market territory.



The Nasdaq has fallen about 30% from its record high as tech shares continue to get pummeled.



This is a market that's trading on emotions and not rational logic.

[Breakfall]

The Dow Jones Industrial Average fell for a sixth straight day Thursday, as traders failed once again to find their footing in an increasingly volatile market.



The S&P 500 hit a new low for 2022, closing more than 18% off its 52-week high and steering closer toward bear market territory.



The Nasdaq has fallen about 30% from its record high as tech shares continue to get pummeled.



This is a market that's trading on emotions and not rational logic.

A mate of mine is waiting for his crypto currency to get out of the global slump. Do you predict that sooner or later. He's going to ease me into the game, but I don't want to be throwing away any serious money.

[Anonymous]

Wells Fargo CEO Charles Scharf arned Tuesday that there is "no question" that the U.S. economy is going to get worse before it gets better.

[Thiel]

GMO cofounder Jeremy Grantham warns stocks will plummet, predicts a near-term recession, and sounds the alarm on a superbubble.



Here are Grantham's 9 best quotes from the interview, lightly edited for length and clarity:

1. "The other day, we were down 19.9% on the S&P 500, and about 27% on the Nasdaq. At a minimum, we are likely to do twice that. If we're unlucky — which is quite possible — we would do three legs like that." (Grantham noted the stock-market decline could take a couple of years.)



2. "We should be in some sort of recession fairly quickly, and profit margins from a real peak have a long way that they can decline."



3. "Superficially, this bubble looks very much like 2000, focused on US tech. What I fear is that there are a couple of differences with 2000 that are more serious. What you never want to do in a bubble is mess with housing, and we're selling at a higher multiple of family income than we did at the top of the so-called housing bubble in 2006. The bond market recently had the lowest lows in the history of man, in 6,000 years of history. Energy has put up metal prices, and food prices are actually higher than they have ever been before in real terms."



4. "We are really messing with all of the assets, and this has turned out, historically, to be very dangerous."



5. "This kind of 2000 bubble that we have is dangerously likely to morph into the 1970s, where inflation is always a part of the background discussion, and where growth rate starts to dwindle away. You have shades of stagflation as we had in the 1970s, where commodities are intermittently scarce, price jags here and there, where the whole system is so strung out that it's lost its resilience."



6. "The Fed are completely hamstrung. They have to put inflation up at the top of the agenda, and that takes away pretty well all the ammunition that they had back in 2000 and in the housing bust." (Grantham highlighted the dangerous combination of very low interest rates, record levels of debt, and inflation.)



7. "This is starting way behind, so there's a lot of catch up to be done. I'm sure the Federal Reserve guys are waking up in the middle of the night sweating about this one." (Grantham was underscoring the disconnect between 8% inflation in the US, and interest rates near zero.)



8. "When inflation is around for a long time, you have to be reconciled to lower price-earnings ratios; that's what the history books say." (Grantham expects inflation to linger because declining birth rates across the developed world will lead to a shortage of labor over the next 15 years, driving up wages and putting pressure on resource supplies.)