Category: Investing

‘Political posturing’: Why escalating U.S.-China tensions are not rocking markets

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“And when you get the second wave, the mystique is gone,” said Mordy.

China, Mordy said, also doesn’t appear ready to up the ante. Chinese officials have been “biting their tongues” in the current dispute because their top goal is to preserve economic growth, Mordy said.

Even China’s state-backed media has begun to reflect this strategy. The Global Times, a mouthpiece of theChinese Communist Party, published a column on Sunday arguing for restraint because the latest U.S. measures were only attempts to gain traction in the election.

“If we ignore those actions and meet them mainly with ridicule, then we might gain more international support than be directly confronting them,” the editorial said.

That’s why Toronto-based Purpose Investments chief investment officer Greg Taylor recommends that investors continue doing what they have so far in response to the building tensions: “Keep your head down,” he said.

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Three ways you can use lockdown to make your finances ‘antifragile’

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Only 39% of adults are confident in their ability to retire, which is down from 54% prior to the pandemic

All of this worry can be avoided by undertaking a thorough review of one’s overall situation via a financial plan which will map everything out including the potential risks. Then stress test the plan to see how it will impact your overall lifestyle under different scenarios. This will be incredibly helpful in the event there happens to be major change in one’s life including the death in the family, an illness causing disability, a divorce, or the loss of a job.

Review your will and estate

A proper financial plan will also flush out actionable steps such as ensuring your goals and objectives are properly reflected in your will. This couldn’t come at a more important time as we find it shocking that only 49 per cent

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Don’t buy ‘worthless’ Hertz stock and other investing wisdom from the pandemic

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Investors still don’t think

This can be tied in a bit to the greed comment above, but in some areas of the market it is very clear that investors are not putting much thought into things, either. The absolute best example in the crisis is Hertz Global Holdings (HTZ on NYSE). Hertz is bankrupt. It has filed the regulatory papers as such. Everyone knows this. But then, due to somehow overwhelming investor demand for its stock, it decided to sell new shares, up to US$1 billion worth. The deal looked like it would be an easy sell. It didn’t matter that the company warned more than 12 times in the prospectus that, “the shares are likely worthless.” It mattered not. Investors wanted in on the action. The SEC, knowing that sometimes investors are their own worst enemy, had to put a stop to the share sale. This

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Five good reasons why tech stocks are crushing the market this year

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Tech companies were already online, so lockdown didn’t hurt them

As a blatant example, when was the last time you remember actually buying a software package that was on CD-ROM? Yeah, we can’t remember, either. The shift to the cloud had occurred long before COVID showed up, and technology companies have for years been practising remote-work, online sales and video conferences. The global shut down really did not have any impact on the way they conducted business, at all.

Fear of missing out (FOMO)

This has been discussed before, but let’s look at it from an investment manager’s perspective. Suppose you are a fund manager, and you thought — as many did — that tech stocks were overvalued in January. So you were under-weight the sector. Now, it is August, and your fund performance, versus the market, looks horrible. You have two choices: One, stick to your

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Greenback blues: Are the doomsayers finally right about the demise of the U.S. dollar?

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“Our role as a global leader is tarnished to say the least,” Roach said. 

The dollar has historically been strong when it has found itself on either end of a framework called the dollar smile, Scotiabank chief currency strategist Shaun Osborne said. On one end of the smile — picture a wide “U” shape — the greenback strengthens due to investors becoming risk averse. At the other peak, itralliesbecause the U.S. economy is growing and demonstrates a yield advantage. 

Currently, neither one of these conditions is in place, he said. As foreign economies continue their recoveries, investors are once again willing to take on more risk and redirect some of their portfolios towards emerging markets. The Euro and Yen have appreciated substantially as a result.The U.S.economy, thanks to a poor response on COVID-19, is also lagging. 

In a note published last week, a

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This millennial tech worker is meticulous about saving, but his investment gameplan needs work

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He knows that, despite his budgeting, he could benefit from cutting down his food bill, which totalled $742 in the month Spent looked at his expenses. The bulk of that budget goes to groceries. Duke spent $286.66 over three trips to No Frills, $95.92 at Costco, $25.35 in two trips to Loblaw’s, $8.77 at Fortinos and an additional $100 at a local Chinese grocery store.

As far as the rest of his spending, he said he can’t make any other concessions. He only uses his car for transport — no ride sharing or public transit expenses appear in his monthly spending — and he spends just above $400 on insurance, gas and parking. His entertainment budget is light and so are his bills — $1,000 for rent, $42 for his cellphone and $15 for a gym membership.

Where he could stand to benefit from professional advice is

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