It is hard to miss the headlines from the last couple of days. The stock market is down and it is all across the news with terror inspiring headlines.
North American stocks close with big gains in volatile trading
£50bn wiped off FTSE 100
Yes, the Stock Market Just Went Into Free Fall—It’s Not the Metric You Should Worry About.
These headlines and all the talk that goes with them can inspire worry and second-guessing but it shouldn’t. When you see the headlines market drop think – sale!
Last week Rob Carrick wrote about the minuscule (1.1% including inflation) returns the Toronto Stock Exchange (TSE) produced over the last 10 years. While accurate it is also demoralizing for many investors. Having a long time horizon is important but 10 years should be enough!
Happy Financial Literacy Month! This is one of the most important awareness campaigns of the year! I can picture you rolling your eyes at me. Financial literacy is important to all Canadians and most people know less than they should and even less than they think they do.
On Tuesday OSFI (Office of the Superintendent of Financial Institutions) released the final draft of the new mortgage qualifications. The new rule says you must prove you can withstand a 2% increase in your mortgage payments. As a mortgage holder if your interest rate is 3% you must prove you can afford your home at an interest rate of up to 5%.
On September 6th the Bank of Canada increased the ‘over night’ interest rate to 1% (up by 0.25%). This means that the interest rate the Bank of Canada charges other banks for short-term money is now 1%.