Canadian economy has been in borderline recession for the last 6 months: strategist

With mixed results from BMO and Scotia, Philip Petursson, chief investment strategist at IG Wealth Management, join BNN Bloomberg to discuss an increase in loan loss provisions from the big Canadian banks. Petursson say higher mortgage renewals will be the leading cause for it. He adds the BoC will be paying close attention to big bank results. He expects cuts in either April or June.
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[@KarlyNoorda]

My greatest concern is how to recover from all these economic and global troubles and stay afloat especially with the political power tussle going on in Canada.

[@parrish8386]

Inflation can have a significant impact on individuals and their cost of living. As a result, it can cause negative market sentiment. It is important for individuals and businesses to find ways to navigate and potentially mitigate the effects of inflation on their finances. The current economic climate, including underperformance of financial markets due to fear of inflation, has led to a decrease in the value of my portfolio. I would appreciate any recommendations on how to potentially increase returns during this market downturn.

[@fadhshf]

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over $80k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.

[@hasede-lg9hj]

I learned from past mistakes not to rely on rumors and hearsay for market judgments. In 2020, I held worthless positions until I revamped my portfolio with the help of an advisor. Since then, I've scaled up $450k in 2 years, regardless of market conditions. It's all about where you're looking.

[@lowcostfresh2266]

@@hasede-lg9hj Please pardon me, who guides you on the process of it all?

[@hasede-lg9hj]

I won't pretend to know everything, though. Her name is Melissa Rose Francks but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.

[@marihutten]

Anybody with any sense of reality and ability to look around knows that this country has been in a recession for like an entire year already. But a few millionaires make some bucks and ?oh wow, we're not doing badly". Want to know the truth, look at people's lives, look at credit card debt, not the bottom lines of corporations. Seriously, people are so self-centered, unless the problem hits their wallet everything is fine and dandy to them.

[@Pugh.Pugh.BarneyMcGrew]

Not enough people studying economics. This is entirely predictable. So a few things. TLDR: If you know anything about economics, we are long past the point of being screwed. 1. The only things that count in the economy, are essentials (housing, food, fuel etc.), or things you can trade for essentials to another economy. Things people can't live without, this does not include, education and healthcare. 2. Anything provided by the government paid for by taxes, turns a luxury into a necessity, like education and healthcare. Any service you cannot avoid like banking or legal services, also become a necessity. 3. The reason why The West was a patriarchy, was because traditionally men, worked these dangerous dirty jobs. Technology meant production boomed and men had a lot of money to spend on luxuries, including women and families, which men instinctively want. 4. Over the years a smaller and smaller surplus of real essentials have been produced, because the incentive to produce them has gone negative for blue collar workers. More and more luxuries are artificially made essential. Excess has also been eaten into by immigration and population growth. 5. Now we (collectively) cannot afford all the necessities, real and artificial (ironically particularly the people working to produce real ones), and as the Government wont reduce taxes, and the banks won't reduce fees, or the amount they take from every transaction we do, real necessities are scarce and rising in price. The problem that engulfed the US black communities, because they had little involvement in profits of these luxuries turned necessities, has been hitting blue collar white men as well, it just isn't obvious, because there are a lot of straight white men that are rich from the same things. There really is no way out of this mess, other than go back to the patriarchy for a while and reduce the quantity of these "False necessities", but I can't see that happening, can you?

[@marihutten]

@ugh.BarneyMcGrew I just see a path towards homesteading and drifting off "the grid" even if partially is the path people should start looking into. I've been studying the great depression because we're basically in one right now and multigenerational households will be a normal thing in this era. I see nothing wrong with that, to be honest, family raising kids (not necessarily the woman on her own, but grandparents involved as well) was common up until quite recently. Leaving the elderly in a retirement home and dropping kids off at daycare at 10 months old are all innatural things. All of the artificial stuff you're pointing out I see it was this mainly. The job market with AI will automatically require less people working anyway, so we may as well reconform into a society in which some people focus on upbringing, nurturing and educating and the other sector on producing/servicing. Even the concept of the mom staying at home and dad working is a recent concept. You analyse most societies in the world even those in which we consider "poor economies" and it's not that the moms just stay home, it's that the moms also work, but they spend more time at home in comparison. For most of humanity both men and women were working to different capacities and the luxury of just changing diapers all day was something only the rich had access to. I don't think that necessarily entails women being stay at home moms necessarily, this could also be uncles and aunts not working and taking care of the kids while the parents work. Basically the concept of some stay home to take care of the property and children while some others go outside to work (or do it remotely).

[@Pugh.Pugh.BarneyMcGrew]

@tten It would almost be OK, if women would be prepared to have children again, because population replacement is, in any normal world, a necessity and a good investment, but the culmination of Liberal ideology, i hope accidently, is a anti-heterosexual children who are loyal to their parents. This together with the availability of recreational sex, makes having a wife a lot of risk, and cost and not much upside. I can't talk - I worked in banking for 35 years, and my father was an accountant, whose parents owned a farm, so I'm part of that drift. I was part of the problem. But for the past 10 years I have been working on home renovation projects making more money (at least 3 times more) than I ever did in banking IT with little tax. I think the easiest way out is for men to start doing the blue collar stuff, self-employed and homesteading like you say, with the women who get it. But will the government let the men get away with it. Stalin didn't, nor did Mao.

[@sd8c]

you are 100% right. we are self centered and dont care for other people, this does not serve us as a whole in any way

[@Pugh.Pugh.BarneyMcGrew]

@ It it isn't that, it is that we have to care equally but we don't. It is female human nature to care for the weak, and the suffering, but consider a tribe of stone age humans. They give all their winter food to the disabled and the women. In the spring all the men are too weak to hunt, and the tribe has no food, because they saved the disabled person. The men die first saying, "Why were we not more self-centered. And why did Charlie go to that other tribe to get a traditional wife, after he sided with the women?" 3 days later Charlie shows up with food and enslaves the women. Now lets assume that the ruling elite, are the other tribe and Charlie.

[@chriswiens9706]

Cutting rates right now is a very bad thing for the economy. What planet are you on!?!? If rates cut for interest/etc, that will entice Canadians to spend more money that they do not have!

[@2FLIPS3.5TWISTS]

I agree, 5% is nothing. There needs to b e a housing correction, its the only way to keep young people here, well the ones with options that are educated.

[@chriswiens9706]

Agreed. The rates should of been increased to 10-15% so we can see major changes!!@@2FLIPS3.5TWISTS

[@shsal110]

No way rates should be cut, it will be painful but need to get things balanced out again. Cutting too early will undo all of the progress made so far. Govt needs to step in and invest in things that raise productivity (one of the few things worth increasing the deficit for)

[@chriswiens9706]

I also think they should step in and put a cap on home sale prices dependant on geographical location and also on rentals@@shsal110

[@dkrawk8309]

Lol

[@PaulKatrina.]

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

[@EddyAgnes-vy4kp]

The pathway to substantial returns doesn't solely rely on stocks with significant movements. Instead, it revolves around effectively managing risk relative to reward. By appropriately sizing your positions and capitalizing on your advantage repeatedly, you can progressively work towards achieving your financial goals. This principle applies across various investment approaches, whether it be long-term investing or day trading.

[@nicolasbenson009]

Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.

[@CraigLloyd-fz6ns]

Please can you leave the info of your investment advisor here? I’m in dire need for one

[@nicolasbenson009]

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Margaret Johnson Arndt for the last five years or so, and her returns have been pretty much amazing.

[@Suleferdinand]

I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

[@paengguin9381]

Borderline recession??😂Canada has been in recession for almost 2 years and is nearing depression.

[@Tennis2016]

economic growth is not flat . It’s ZERO , if not negative …

[@user-je6cy3pu3u]

Shouldn’t the banks be doing better after renewing mortgages at a higher interest rate? Or the CEO’s bonuses ate that in the first week of the year?

[@famicomnintendo]

higher rates are usually good for banks for such steep hike in interest rates are slowing down demand for other general demand and other type of loans

[@steveshideler1333]

They make more cash on loans whose rates rise, they don’t make as many new loans though as borrowing decreases and they also have to set aside more of their revenue for the cases when people default on their loans. This hurts the banks bottom line.

[@dsbarclayeng1]

The banks are just playing it safe against potential foreclosures.

[@dsbarclayeng1]

The banks make money on the split; the difference between what they pay out as interest and what they charge.

[@jcat5515]

Interest rates increase, banks make money. Interest rates drop, banks make money.

[@dsbarclayeng1]

You can't fix; a housing crisis, a rental crisis, a health care crisis, an inflation crisis - by fiddling with interest rates.

[@gatorarms9241]

You can but it should have been done years ago, low rates for too long created a huge mess in more ways than one.

[@Peglegkickboxer]

Trudeau's solution to fixing housing is just importing another million immigrants.

[@user__100]

Canada uses Newcomers to pay pensions of old Europeans through tax

[@BDee3126]

These Indian newcomers voluntarily keep coming here and then bring the whole village with them later on.

[@Pugh.Pugh.BarneyMcGrew]

This seems like a case of chutzpah. An immigrant puts themselves in this position of their own free will and then complains about it. "Like a man who, having killed his mother and father, throws himself on the mercy of the court because he is an orphan."

[@shankar4330]

Those who complain of newcomers flooding their land, don't whine. Vote for a party that closes it down. And oh, while you're at it, you need an alternate source of funding for your economy, which you don't have. So shut up

[@Pugh.Pugh.BarneyMcGrew]

@@shankar4330 Well, my comments about the newcomers whining, applies the same to Canadians whining about newcomers. Right now I think both sets of people are a bit worried that they are being ripped off somehow, and so there is friction. I have a nasty feeling that we are both being ripped off and there is an illuminati group of the elite screwing us all. Perhaps we should unite against the common enemy?

[@lynb1022]

@@shankar4330 Canadians would be able to 'fund our own economy' if we weren't forced to spend 70% or more of our income on just housing, a problem exacerbated by mortgage fraud & money laundering, most of which has been 'imported'.

[@w.s.2102]

Another 1 million immigrants per year should keep us just above that line

[@avijitbasu5789]

😂😂😂😂😂😂😂😂😂

[@APICSKH]

I was just looking for this comment 😂

[@simonmorin2291]

On that million immigrants, you can find a minimum of 5% with chronc disease untreated because its expensive in their own country or because it wasnt diagnosed. It is not only the housing market. It is also the healthcare expenses. If an immingrant comes here and goes to the hospital the 1st year, that one person cost more than he brings to the canadian population. Not good for economy.

[@shankar4330]

Good idea when immigrants are greasing your machinery for decades. Be grateful

[@simonmorin2291]

@@shankar4330With nonpaper and Illegals for the most part (non tax payers)?

[@Frenchkisssss]

Trudeau is a catastrophe.

[@Aboard_and_Abroad]

oh ok.. spend our way of it, i get it.

[@vancouverviking4652]

We've been in a depression for 4 years

[@Bharatnamo]

English speaking obsessed country with Canadian experience ( truck driver,Uber driver, packaging, restaurant) a must for success....😁😬

[@gurpreetgill6761]

Still the per capita income is more than 10 times the country ruled by feku ji .

[@jonathanbabich7669]

?

[@MrEchoco]

Maybe learn English and how to put sentences together before you post.

[@wc4109]

BOC Governor’s reaction to recession? “What do I care, I don’t have a mortgage.”

[@user-vi8ci2bi6b]

He's not responsible for anyones personal financial situation, you are.

[@lmtada]

Previous BOC governor went invested into multi ownership residential real estate. He was even marketing it on BNN.

[@JC-hl9nu]

A lot of companies are doing layoff. If cost of borrowing to do business is high, more layoffs needed to trim down expenses .Where will government get the money to pay their EI. Ask those still has job to pay more taxes and print more money to pay the EI. More money in the market leads to another round of inflation until dozen of eggs cost 200 dollars

[@brodieobrien-pickering2202]

all these "experts" calling for cuts are consistently wrong

[@TheJoeMoneyShow]

So help us!!! Enough of this garbage make the Canadian market go up!!

[@anthonyfiorilli2309]

Bullshit. Don’t trust anyone in this his business

[@MustyBastard]

Wait.. I have pie ?

[@CC-jy4gr]

I love pie

[@dipro001]

Experts will talk about everything expect making cheap housing.

[@ChrisMCP2]

Banks do it because loss provisions are a loss for them, yes, it's a write off. On paper. They love it.

[@tommya5957]

No shit, what a news bulletin.

[@wondereagle]

High prices, high rates, high debts……recession…..depression?

[@AnhTuPhucDerrickHoangCanada]

people are only following Canadian positions south of the border, even Canadian companies put their innovation in the usa

[@lominiski]

It is not the BoC, it is tFeeland who did not know how to manage finances. Psss....It is the US that should be watched.

[@theflowpowa42oshow]

I think they will pump those rates as they ought to.

[@user-qx9rd9to4q]

Gee, what got us here the last 4 years?

[@kamenidriss]

and yet BOC still not talking about rate cuts. Really asking for a house crash then we'll all go back to 2008 economy.

[@user-vi8ci2bi6b]

​@@user-se7ul6zt1l Will just be more people who can't afford to buy. Almost none will be looking to buy. They will rent, 10 to 20 in each house, this will also cause rental demand to slow. You people, your tunnel vision on supply/demand will be your demise. Its already becoming what the market will bear.

[@lmtada]

No rate aren’t going down, if anything this is as low as they go. Get used to true normalization 5-8% interest rates. This is normal. 1-3% not normal .

[@user-vi8ci2bi6b]

@@user-se7ul6zt1l You should do your homework on what immigration really does for demand on housing. I live in a mostly East Indian area of Abbotsford and have many neighbors and friends who know the real deal on what it does for demand. Almost all immigrants who come in through the normal channels are sponsored by an existing Canadian citizen (there spouse, grandmother, whatever) who already has a place for them to live, they have little to no impact on rentals or purchases. The students have a massive footprint as far as rentals go, but almost none purchase a home, some buy condos but that is it. Now the students,( which there will be fewer of)are cramming 10 to 20 of themselves into ONE rental. Immigration only causes RE prices to go up if a large amount of mostly lifelong Canadians buy properties to specifically house the students, which is as I already stated a smaller number. The RE run is over!! The tunnel vision around this is astounding. AI stocks(some of them) will be the next Microsoft. Make your money like all the other generations did. Lol

[@kamenidriss]

@@bilko_4732 LMAO. Yeah good luck with even one rate hike with our country is on the border, if not already in recession. Maybe try to get informed first before claiming people have no idea.

[@anandkumar61]

i like this guy, he spoke the truth

[@CC-jy4gr]

Truth Speaker

[@Talksin403]

Got forclosure papers nailed to my door yesterday. This is the houseing plan ehh? Eject current property holders into the street to make way for newcomers . Gross.

[@Donniewearstomford]

Damn hopefully things work out for you I know how it feels

[@BalwinderKaur-qb6wi]

So how international students survive here this time is so stressful for us

[@lmtada]

The uncertainty is large. Had light discussion with 50+ single women. She is worried, with mortgage renewal, needs another 20 years to pay off home (70+), no room for retirement. All I can say, avoid divorce as much as possible. You will rarely recover.

[@Peglegkickboxer]

No sympathy for the boomer and older Gen x generation. They had 70 years of near constant economic growth with a recession about every 10 years. I entered the labour force in 2011 and have gone through three recessions now, hardly any growth excluding the tech industry which is non existent where I live. They get to have a retirement funded by my tax money of which I will never get to partake in.

[@Donniewearstomford]

💯

[@mikeb5664]

Ya, they've been warning of a US recession also...

[@liangyuaq-qoyunlu407]

it's coming

[@DoveandRaven]

I think when minimum wage was allowed to drop below the minimum required for a full-time worker to buy their own land we should have all stopped paying taxes and went back to a more civilized society

[@CC-jy4gr]

Buckle up tight!!!

[@brandon1113]

imagine being able to afford groceries lol couldnt be canada

[@ferriswheeler08]

If he believes the CPI data I ignore everything he said lmfao

[@dkrawk8309]

No way!!!!!! Every canadian living on the street, paying 2$ for L per fuel, buying expired groceries, IS PROUD OF IT!!!!! We are sticking it to Putin!!!

[@johannndsouza]

lol your telling us the obvious? We knew this for the past 6 months....

[@SKINNY531]

Sunny ways sunny days....💩

[@derek04151]

Borderline ?? 🤔

[@timmanto1022]

If its borderline its a recession.

[@KingUnKaged]

If you don't own a house,for you, Canada has been in a recession for the last 10 -15 years...

[@nairnbaker7385]

Debt housing market. Loaned money propping up loaned money. Not good. At the end of the day it's the owner of the home on the hook.

[@apocalypse369]

Housing has become a ATM for homeowners. Enjoy your lifetime of debt

[@APICSKH]

@@apocalypse369finally found a comment which should have been mine, you beat me on that 😂

[@CC-jy4gr]

That isn't how it works lil man

[@Azel247]

So the data is only reliable when it fits what you believe?

[@Cutlerypotato]

Like saying JT is a borderline narcissist

[@Math_Homework_Help]

🙁

[@devdalling9876]

The joke nation

[@jarrettbobbett5230]

for years & years they keep throwing that word around. still no recession. Canadas world leading immigration programs are bearing real fruit for our economy.

[@zacatkinson3926]

You are lost

[@jarrettbobbett5230]

Canada has the Most successful immigration programs in the world. Most coming to Canada are either young or wealthy both are good for Candas economy. You can look up these facts yourself dont be shy. @@zacatkinson3926

[@lynb1022]

Bullshit. Diploma mills and imported mortgage-fraud to perpetually expand an artificially bloated housing market does not equate to "bearing fruit" for anyone.

[@MangoFlamingo]

News every month since 2021. In 3 months, interest will decrease

[@1mikesass]

Fjt

[@nosnibormailliw5122]

Truck the middle class 🤡🍁🤡

[@mymailgmail2754]

doom nation is trying to smooth things up but talking the real data canadian won’t be able to chew and swallow it😂