Rate path divergence in Canada vs. U.S.

Earl Davis, head of fixed income and money markets at BMO Global Asset Management, joins BNN Bloomberg to share his outlook on the Canadian economy.
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[@Alejandrolucia-s]

The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.

[@mayalucia-]

Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.

[@RomeroCarmen-4]

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.

[@AlvarezDanuta]

)How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.

[@RomeroCarmen-4]

Svetlana Sarkisian Chowdhury is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@danutalucia]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@ron.mexico.]

The day we start getting excited about affordability coming back to housing in the day we start worrying about our jobs.

[@ron.mexico.]

Listen to Earl. He called for 5% interest rates very early.

[@dirtlump]

BoC rates will come down, unfortunately though..... rates can NOT be returned sufficiently low enough to alleviate significant Mortgage renewal failures/power of sales/increasing Real Estate supply to lower valuations, concurrent with inevitable reallocations of consumer spending away from GDP to higher Mortgage/Debt servicing payments. In my view inflation will exhibit a stubborn ~3% resilience regardless through 2025 compounding BoC rate trajectory anywhere below 4% in relief of the Mortgage renewal wave

[@petrofx]

The fact that the US WANTS to cut rates but can't is very telling. Canada doing it already and knowing this situation is also very telling. The desperation is ramping up. Anyone cutting rates will suffer faster and higher inflation. Raising rates to curb inflation need to see them around 9%. This would bankrupt too many and raise taxes double where they are now. This is the ultimate catch 22. We are allllll headed for a very severe and rude outcome to this mess.

[@jasperalberts7647]

I have a USD denominated investment account to hedge against against the Arctic Peso and precious metals to hedge against "King Dollar" (ultimately still toilet paper fiat currency).

[@tommclaren812]

The BOC will need to cut rates at every meeting if the market is going to survive.

[@petrofx]

The sacrifice of the dollar with each rate cut will only add more pain to the inflationary pressures that will mount

[@tommclaren812]

@petrofx a weaker dollar means more exports which leads to a better economy.

[@petrofx]

​@tommclaren812 Yes! If we had enough exports to justify your point it would be valid, but we don't. We IMPORT multiplies more than we export. So your point counters your intended conveyance

[@tommclaren812]

@@petrofx that's not true. Our exports are only slightly less than imports. Not multiples higher like your claiming.

[@petrofx]

​@tommclaren812 the stats indicate you're correct more or less. Imports are not multiples of exports. Let's see how this plays out with inflation