Thoughts on the Market

Fall is upon us, to the delight of nature lovers and North American sports fans. You can enjoy a drive to see the fall colours and watch baseball, basketball, football and hockey in the same weekend. It is also the time of our favourite season of all: third quarter US earnings season.

Cat Stevens’ emotional ballad is about lost love, but one thing remains true as it relates to the stock market: investors love interest rate cuts. So why is the first cut important? One interest rate cut does not make a trend as it is only a simple data point. However, if more interest rate cuts happen, a trend begins, and the market gains momentum. This month, we will focus on North American interest rates and their projected impact on both the market and the economy.

If you have viewed social media, this has happened to you: you read an article on a topic of interest, and it raises a concern. An hour and 20 articles later, your level of concern has grown as you find several different opinions on the same topic. This is known as doomscrolling, and if you’re not careful, it can negatively influence how you process information and make decisions, particularly around investing. Our goal with this article is to help people move from being readers to researchers and separate facts from opinions.