Inflation

Apparently, according to the Bank of Canada Governor, David Dodge, the answer is yes! He said that Canadian lenders have also became very lax when lending money, which may have contributed to the inflation of real estate prices, particularly in Canada's major cities, Vancouver, Toronto, Edmonton, Calgary and…

After keeping interest rates unchanged for four years, yesterday the Fed surprised the markets with a half-percent cut. "Surprise," I say, because most analysts, including me, had been expecting a 25- basis-point cut. Yesterday marked a pivotal day for me in respect to my opinion of Ben Bernanke.…

The U.S. Labor Department reported yesterday core inflation prices rose only 0.2% in April to an annualized rate of 2.3%. The inflation rate in the U.S., also known as the Consumer Price Index, is a paltry 2.3%. So what’s the big fuss at the Fed about its worries…

In my last Profit Confidential commentary, I parted with you, dear reader, with some advice that ignoring developments on the macroeconomic level could filter all the way down to your portfolios, potentially hurting your returns, or, at the very least, limiting your potential gains. Today, I would like…

Not only are third quarter earnings coming in solid, inflation is moderating and therefore investor sentiment is improving. Frankly, I think the Federal Reserve has done a great job managing interest rates; engineering slower growth without putting us right into recession. Some Street analysts are calling for a…

Well, the third quarter is behind us and it's almost earnings season once again. I can't wait to get a look at the numbers. Earnings season is always the best time to be researching new investment opportunities. You get the latest numbers from a company, you get its…

There are many signs that this economy is slowing. Wall Street wants it to slow so inflation doesn't get out of control, but the trick is not slowing it too much so that we fall into a recession or stagnant growth. For quite some time, I've scribbled about…

What's the one common item consumers see costing them more? I'd have to answer, gas. Courtesy of record high crude oil prices, consumers are paying more at the pump to fill their vehicles than they have in years. But, what else is going up in price dramatically? Well,…

Long-time readers of this column know about my affinity for investment themes. Perhaps you could think of it as market sector investing, but I find it useful to consider investment themes as a way of finding the market's best speculative opportunities. Over the last year, we've talked about…

Markets just passed the midway point of this year and it looks rocky at this time given all of the risk factors such as high oil prices, interest rates, inflation, the economy, and earnings.  The second quarter was not something to remember as markets corrected and whether a…

We are now in a period of significant weakness for the broader stock market. Despite the solid first quarter showing from corporate earnings, inflation and interest rate fears will take over all trading action in stocks over the near-term. This is why you need to be sitting on…

I'm still having a ball reviewing first quarter earnings. Most of the bigger corporations have already reported their numbers, but a lot of smaller companies are doing so now. The good news is that a lot of companies we've talked about in this column reported excellent financial growth.…

I'm buying a new home, so I was very much tuned into yesterday's announcement by the Bank of Canada. As was expected, the central bank has raised its overnight lending rate by another 25 basis points, from 3.75% to four percent. Note that this is the sixth consecutive…

Earlier this year, I predicted that the big news for 2006 would be precious metals. If 2005 was all about the price of oil, 2006 would be all about gold, silver, zinc, copper.you name it. I wonder if this forecast was slightly incorrect. Right now, it looks like…

It's a difficult market to be a new investor right now. On the one hand, corporate earnings are coming in great, showing excellent profitability growth at both large-cap and small-cap companies. On the other hand, there's the nagging worry about inflation and rising interest rates, and the reality…

On Thursday, the Interest Rates Are On The Rise increased its key interest rate by a quarter percentage point to 2.50% resulting from concerns about inflation. Sound familiar? But, unlike the United States, the increase was only the second 25-basis point in more than two years. Yet, there are…

Based on rising inflation rates, there is a good chance that Canadian interest rates will soon be going up, following the footsteps of the United States and the United Kingdom. The inflation rate in Canada hit an all-time high of 3.4% since March of 2003 in September, up…

If you think you have it bad in the U.S. stock markets, just be glad you don't live in Japan. It may be true that the Japanese build much better cars and electronic devices than Americans, but take a closer look. The Nikkei 225 (the largest 225 companies…

If you know anyone from Brazil or anyone who travels there frequently (like my brother-in-law, Dave, who goes to Rio de Janeiro every fall), you might have heard at some point or another the popular jeer, "Brazil is the country of the future -- and always will be."…