June 06, 2022
Tactical Growth Mandate - Weekly Briefing
Feedback requested on this week’s newsletter – I welcome all thoughts and opinions as we try to figure out what’s going on here.
Here’s the scenario:
- Inflation is hitting record levels in Canada; purchasing is more expensive.
- The bank of Canada just raised borrowing rates last week by 0.50%.
- Canadian household debt to disposable income just hit a record level.
Now for businesses (public or private) to remain profitable, one would expect they are going to have to pass along their rising costs to consumers or have to lay off a portion of their existing staff.
In the context of central banks in North America removing stimulus and accommodative policy from the monetary system, what impact should we expect this would have on stocks and bonds?
I’m positioned for a negative outcome; but what am I missing? Let me know.