Jun 3, 2022
Home Economics: Using ETFs as a cash alternative; Young people living paycheque-to-paycheque
The hawkishness of the BoC is a prelude to a 75-basis point rate hike: Managing director
Many young people living paycheque-to-paycheque: Deloitte survey
A recent survey, conducted by Deloitte between Nov. 2021 to Jan. 2022, found that many Gen Z and millennials around the world are deeply concerned about their financial future. The survey found nearly half of respondents in those two cohorts said they are living paycheque-to-paycheque. Many are also worried they won’t be able to cover their living expenses.
Try high-interest ETFs as a cash alternative: CIBC
If the cash portion of your investment portfolio has been building up, CIBC Capital Markets said you could look into high-interest exchange-traded funds (ETFs) as an alternative to instruments such as money market funds. High-interest ETFs make deposits in high-interest savings accounts, allowing investors to benefit from the rising return rates of the accounts. CIBC said they’re a good option to consider for anyone sitting on the sidelines during the current run of market volatility.
Tapping your parents' financial advice to weather stagflation
Many young investors might consider turning to their elders for economic advice on how to navigate the stormy waters of stagflation. That’s because it’s a storm many baby boomers have sailed through before, with the last big bout of stagnant growth and high inflation occurring in the 1970s and early 1980s. Colin Cieszynski, chief market strategist at SIA Wealth Management, offers advice on tactical and defensive approaches to bond and stock investing that have proven successful during historical economic struggles.
Brace yourself for giant BoC hikes: Top Bay Streeter
In the span of less than two months, the Bank of Canada broke its 20-year-avoidance of hiking its benchmark interest rate by half a point not once, but twice. One top Bay Streeter thinks it’s far from over: BMO’s Earl Davis warns that Canadians should prepare for even more aggressive monetary tightening in the coming months.
Homebuyers won't feel the full impact of BoC hikes until summer: Experts
Experts believe the full impact of the Bank of Canada’s interest rate hike announced on Wednesday likely won’t be felt until July or August, when many Canadians’ locked-in mortgage rate contracts expire. But there could be a silver lining for first-time homebuyers. Realosophy’s John Pasalis said higher borrowing rates could scare off some Canadians who are only buying properties as an investment.
Canadians take on debt to deal with inflation: Equifax
An Equifax report revealed Canadians are taking on more debt to keep up with the rising cost of living. As a result, Equifax said monthly spending on credit cards rose by 17.5 per cent in the first quarter of this year. The data also revealed Canadians now carry $20,744 on average in debt, excluding mortgages.
- One of Toronto’s biggest real estate developers said home prices in the city could fall as much as 20 per cent amid higher interest rates.
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