Investors unload properties as rates rise
Personal Finance Columnist Dale Jackson said homeowners fretting about the current downturn in the housing market would likely be better served by focusing on the long term. In his latest Payback Time blog post, Jackson said over the long term, homes still remain a great investment and corrections – similar to downturns in equity markets – are typically short-term blips.
$10.4B in 'panicky money' exited Canadian mutual funds in June
Canadian mutual funds suffered a net redemption of $10.4 billion in June, an acceleration of the $6.4 billion that was pulled in May, according to data from The Investment Funds Institute of Canada. The redemptions were “panicky money” as one portfolio manager put it, as investors exited equity and bond mutual funds, while safe haven money market funds saw a net inflow.
Parental advice on using allowances to teach kids about money
Every family is different when it comes to giving a child an allowance – what age should you introduce an allowance? How much should you pay? How often should it be paid? Should it be tied to household chores? The Canadian Press asked parents about their strategies when it comes to childhood allowances and how they’re using those payments to teach their kids about budgeting and saving.
Where have the workers gone?
Certain sectors – such as health care, foodservice and airlines – are struggling with acute labour shortages more than other industries post-pandemic. So where did all those workers go? Some reassessed their priorities while others said they were tired of precarious work – they tell their stories here.
'Uncharted territory' in the housing market
Rising interest rates have flipped the housing market on its head. Some housing investors are scrambling to unload properties that are no longer viable financially in the face of higher mortgage rates, while some homebuyers are getting sidelined by the tougher mortgage stress test requirements. Meanwhile in the rental market, Toronto renters are saying goodbye to the era of pandemic-induced discounts. Recent data shows the average monthly rent in that city surged 20 per cent in the second quarter from last year to $2,269.
"Growth can't fully avoid the pull of a slowing U.S. economy and the Bank of Canada's aggressive rate hike campaign"
- BMO Chief Economist Doug Porter on the latest GDP data that showed Canadian economic growth flatted in May.Sign up for BNN Bloomberg's weekly newsletter, Home Economics, which aims to help Canadians navigate their personal finances in the age of market volatility, surging inflation and higher borrowing costs. Have it delivered to your inbox every Friday by subscribing at https://www.bnnbloomberg.ca/subscribe