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Central Bank Surprises Markets, Raises Key Lending Rate The Bank of Canada raised its key lending rate on September 5 to one percent, up from a rate hike to 0.75% in July. The two rate hikes in 2017 erase the two rate cuts that came in 2015 in response to plunging oil prices.1 “Recent economic Read More

U.S. Economic Outlook Dire if Government Shuts Down  Standard & Poor has warned of a dire outcome for the U.S. economy if the White House and lawmakers fail to reach a deal to keep the government operating and avert a default. Because of the urgency to address the flooding in Houston, the likelihood of a Read More

iStock.com/Photobuay Equities in Nosebleed Territory The U.S. stock market, the biggest in the world, continues to notch record gains, and this is making investors nervous. Is the stock market overvalued or are investor fears unfounded? According to a recent survey, approximately 36% of investment managers think the U.S. stock market is undervalued or fairly valued Read More

Interest Rates Nudge Higher The Bank of Canada raised its key lending rate one-quarter of a percentage point to 0.75% from 0.50%. This represents the first rate hike since 2010. The big question is, is this good or bad news for Canadian investors?1 The Bank of Canada initially lowered its interest rate to prevent the Read More

U.S. Factory Orders Fall More Than Expected New orders at U.S. factories fell more than expected in May. This is causing concern over the strength of the manufacturing sector, since manufacturing is responsible for around 12% of the U.S. economy. According to the U.S. Census Bureau, U.S. factory orders fell by a seasonally adjusted 0.8% Read More

Loonie Climbs as Canadian Economy Strengthens The Canadian loonie has been rebounding against the U.S. dollar after reporting solid first quarter gross domestic product (GDP) data and hints from the Bank of Canada that a rate hike could be just around the corner. While this suggests the Canadian economy is improving, there is a downside. Read More

Settlement Generates Confidence in Subprime Mortgages Home Capital Group surprised the markets when it announced it reached a settlement to pay $30.5 million to settle allegations from the Ontario Securities Commission (OSC) and a class-action lawsuit.1 The move should help save the beleaguered mortgage lender and breathe life back into the subprime mortgage industry. On Read More