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Wall St Futures Slip as Geopolitical Uncertainty and Mixed Earnings Weigh on Sentiment

Wall Street futures slipped early Thursday as investors grew cautious in the absence of clear signals on the U.S.–Iran war, while a wave of mixed earnings added to the uncertainty. Iran’s seizure of two ships in the Strait of Hormuz and its demand that the U.S. lift its naval blockade have heightened geopolitical tensions, even after President Donald Trump extended the ceasefire indefinitely. The standoff continues to keep oil prices above $100 per barrel , raising concerns about a potential inflation flare‑up.  Economists warn that even if the conflict eases, the global economy may take time to normalize after one of the largest oil supply disruptions in decades.  As of early morning trading, Dow E‑minis were down 0.73%, S&P 500 E‑minis slipped 0.50%, and Nasdaq 100 E‑minis fell 0.48% , reflecting a broader pullback in risk appetite.  Earnings added another layer of volatility. Tesla shares fell after the company boosted its annual spending plan to more than $25...
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The Perils of Cash Hoarding: Why Canadians Should Invest Now

 


In recent years, Canadians have amassed a staggering $400-billion in excess savings, a figure that represents 13 per cent of the nation’s GDP. This phenomenon, largely a result of the pandemic savings boom and economic uncertainty, has led to a culture of cash hoarding. However, experts warn that the reluctance to invest this cash could be a costly mistake.

The Opportunity Cost of Cash: While the security of a large cash buffer is comforting, especially in tumultuous times, it comes with an opportunity cost. Money sitting in bank accounts or term deposits like GICs is money not growing through investment. With the Dow Jones and S&P/TSX Composite Index showing strong performance, and bond yields moving favorably, the potential for wealth growth through investing is significant.

Investment Strategies: Lump Sum vs. Dollar-Cost Averaging When faced with the decision of how to invest excess savings, research suggests that investing a lump sum immediately is often the best strategy. This approach typically outperforms alternatives such as dollar-cost averaging or waiting for market dips, which can result in missed opportunities and lower returns.

Embracing the Market’s Growth Potential Despite the fear of investing at market highs, history shows that the stock market is a robust engine for growth. Delaying investment in hopes of a better entry point is likely to hinder long-term financial gains. Canadians are encouraged to overcome the psychological barriers of cash hoarding and tap into the market’s proven potential.

In conclusion, while the instinct to hoard cash during uncertain times is understandable, Canadians must recognize the importance of putting their excess savings to work. Investing now, rather than waiting, is a strategic move that aligns with historical data and the principles of wealth building.

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