As stocks nosedive, don’t lose sight of the difference between price and value

As stocks nosedive, don’t lose sight of the difference between price and value

A cynic is one “who knows the price of everything and the value of nothing.” This comment, by a character in one of Oscar Wilde’s plays, does not refer to the stock market. But it serves as a good description of what happens at times like the present. When stock market prices are rising, many … Read more

BIS warns economies are approaching ‘tipping point’ where high inflation becomes entrenched

BIS warns economies are approaching ‘tipping point’ where high inflation becomes entrenched

People shop at a Walmart Supercentre in Toronto on March 13, 2020.CARLOS OSORIO/Reuters Many economies are approaching a tipping point where high inflation becomes normal while economic growth slows sharply, the Bank for International Settlements warned in its annual report published Sunday. Countries around the world are facing a dangerous cocktail of high inflation, slowing … Read more

Rising rates and cooling market increase financial risk of home renovations

Rising rates and cooling market increase financial risk of home renovations

Hillary and Andrew Strack-Cheng with their kids Leland and Juniper in their home on June 22.Cole Burston/The Globe and Mail Home renovations can be unpredictable and anxiety-laden at the best of times. But soaring costs, rising interest rates, cooling home prices and uncertainty about Canada’s economic outlook are increasing the financial risks associated with a … Read more

Rising interest rates have brought back the 5 per cent GIC

Rising interest rates have brought back the 5 per cent GIC

We’ve hit a milestone in conservative investing – a 5 per cent return from guaranteed investment certificates. Oaken Financial, an online player in financials services, says it will offer 5 per cent for a five-year term starting Friday. The new rate for the one-year term seems a milestone as well: 4.05 per cent. Rising interest … Read more

As the housing market slows, costly bridge mortgages are an increasingly common last resort

As the housing market slows, costly bridge mortgages are an increasingly common last resort

The average Canadian home has shed 12.9 per cent of its value in just three months, according to the latest Canadian Real Estate Association report. That’s almost 1 per cent a week. If you’re selling a home and not getting any bites, your blood pressure is probably rising – especially if you need the equity … Read more

Monthly payments on variable-rate mortgages could increase as borrowers near their ‘trigger rate’

Monthly payments on variable-rate mortgages could increase as borrowers near their ‘trigger rate’

An obscure feature of variable-rate mortgages may push up the monthly payments for an increasing number of borrowers as the Bank of Canada aggressively hikes interest rates. It’s called the “trigger rate” – the interest rate level that, when surpassed, causes a mortgage holder’s monthly payments to change. The trigger rate has been largely ignored … Read more

Opinion: Bank of Canada would be wise to match US Federal Reserve’s plans for aggressive rate hikes

Opinion: Bank of Canada would be wise to match US Federal Reserve’s plans for aggressive rate hikes

Governor of the Bank of Canada Tiff Macklem speaks at a press conference in Ottawa on June 9.PATRICK DOYLE/The Canadian Press The US Federal Reserve has just raised the bar on using interest rates to attack inflation. Now, the Bank of Canada has a few short weeks to decide whether it will follow. It should … Read more

Bank of Canada likely to mirror 0.75% Fed hike next month, say economists

Bank of Canada likely to mirror 0.75% Fed hike next month, say economists

The Federal Reserve raising its key interest rate by three-quarters of a percentage point – its largest hike since 1994 – increases the odds of the Bank of Canada following suit next month, economists say. The US bank authority announced the Wednesday move will shift the country’s benchmark rate to a range between 1.5 per … Read more

US Federal Reserve hikes interest rate by largest amount since 1994

US Federal Reserve hikes interest rate by largest amount since 1994

US Federal Reserve Chair Jerome Powell speaks during a news conference on interest rates, the economy and monetary policy actions, at the Federal Reserve Building in Washington on June 15.OLIVIER DOULIERY/AFP/Getty Images The US Federal Reserve has announced its largest interest rate increase since 1994, and said that it would continue pushing borrowing costs higher … Read more

Wall Street braces for possible Fed interest rate hike not seen since 1990s

Wall Street braces for possible Fed interest rate hike not seen since 1990s

Traders work on the floor of the New York Stock Exchange in New York City on June 14.Spencer Platt/Getty Images Investors are betting the US Federal Reserve will announce its first 75 basis point interest rate hike since 1994 on Wednesday – a sharp shift in market expectations in recent days as inflation proves more … Read more