From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
As the year 2023 comes to an end, many investors may be tempted to review their portfolio performance and make changes based on the latest market trends. However, this may not be the best strategy for achieving long-term financial goals. Instead, investors should focus on the big picture and stick to their investment plan, regardless of short-term fluctuations.
According to experts, there are several benefits of adopting a long-term perspective when investing. First, it can help investors avoid emotional reactions to market volatility, which can lead to costly mistakes. Second, it can reduce the impact of fees and taxes, which can erode returns over time. Third, it can allow investors to take advantage of compound interest, which can significantly boost their wealth in the long run.
To invest for the long term, investors need to have a clear vision of their objectives, risk tolerance, and time horizon. They also need to diversify their portfolio across different asset classes, sectors, and regions, and rebalance it periodically to maintain their desired allocation. Moreover, they need to review their portfolio regularly and make adjustments only when necessary, such as when their circumstances change or when their investments deviate significantly from their expectations.
By following these principles, investors can increase their chances of achieving their financial goals and enjoy a prosperous new year.
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