Two common mistakes that can cost investors in these volatile times — via financialpost investor
I read an article this week that explored how Shopify, one of the biggest pandemic winners, had fallen nearly 75 per cent from its highs, giving up all of its outperformance over the S&P 500 going back to January 2020.
Shopify’s fall is no secret, but focusing on the sell-off gives the impression that stock might now be one heck of a buy. Now, instead, what if you couldn’t see the stock chart and I told you the shares had performed just as well as the S&P500 over that time span. Would it change your opinion on whether to buy or sell?Article contentAnother good example is energy.
Despite disappointing U.S. GDP numbers on Thursday, which came off a high baseline from the previous quarter and contain a number of one-off impacts, we think the U.S. economy is one of a few that can weather the inflation storm and rising interest rates. It has record-low 3.6 per cent unemployment, 11.3 million job openings representing a 7 per cent rate, and strong consumer spending that even grew at 0.7 per cent during the Omicron wave.
That said, the Total Return SPX is off to its worst start in 34 years. The poor performance is happening because of the index’s heavy concentration on long-duration growth stocks that are highly sensitive to interest rates. For example, prior to this year’s sell-off,showed that Microsoft, Google, Apple, Nvidia and Tesla accounted for more than one-third of the S&P 500s return in 2021.
Here in Canada, we have the opposite view on the economy, which is too reliant on a debt-fuelled households that have gone all-in on real estate speculation, one of the largest drivers of our growth. And they appear to be all-but ignoring the Bank of Canada’s warnings that higher rates are coming. According to, Canadians took out $2 billion In HELOC debt in just 28 days in February, the biggest splurge since 2012, and now owe 1.4 per cent more in HELOC debt than they did a year ago.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
George Springer's two home runs power Blue Jays past Astros 2-1George Springer had two solo home runs and the Toronto Blue Jays held off the Houston Astros 2-1 on Saturday.
Read more »
Second bombing in two days in Kabul on eve of Eid al-Fitr holidayA day earlier, an explosion killed more than 50 worshippers after Friday prayers at a Kabul mosque
Read more »
Fredericton Home Show returns after two-year hiatus - New Brunswick | Globalnews.caBefore COVID-19, New Brunswickers would gather annually to learn how to plan home improvement projects from experts.
Read more »
Restaurants hope for playoff hockey boost after two years of COVID-19 restrictionsMany Canadian restaurants are preparing for patio season to drive up seating capacity as the NHL playoffs begin
Read more »
Two people rescued 50 hours after building collapses in central ChinaPolice have arrested nine people, including the building owner, on suspicion of causing a major liability accident, according to the official Xinhua News Agency
Read more »
Rahm closes with birdie to build two-shot lead in Mexico Open, Gligic 10 shots backJon Rahm birdied the last two par-5s and got some help from a couple of poor chips by Cameron Champ to take a two-shot lead into the final round of the Mexico Open.
Read more »