April 2023 Update
Stock market performance in the 1st quarter of 2023 was positive – you can see from this chart that most of the major stock markets increased in value
Stock market performance in the 1st quarter of 2023 was positive – you can see from this chart that most of the major stock markets increased in value
We are now well into 2023 and a common question is, “How do I think the markets will behave for the rest of the year?”
Over the past year, central banks have increased interest rates to combat inflation.
Those rate hikes have helped slow things down, but the impact has been imprecise.
The waiting game is an apt description of markets lately.
Do you contribute to a defined benefit pension plan?
Loss aversion is a cognitive bias that describes why people tend to prefer avoiding losses to acquiring equivalent gains.
If things are so bad, why are they so good?
When the economy is overheated and asset prices are inflated, pulling the interest rate strings is the economic definition of pumping the brakes.
Looks like inflation is slowly slowing, but not yet at the desired level, with a similar situation in the US. Interest rate increases are on “pause” here, and the US Fed is signaling it wants to raise some more before their pause.
Extra cash can present a dilemma – is it better to pay down your debt or put the money to work in investments?