Morsky Memo

After a first interest rate cut in June, the Bank of Canada (BoC) again lowered its key overnight rate by 25 basis points at its meeting Wednesday, to 4.5%. The move was in line with market and our own expectations ahead of the announcement.

While mega-cap tech stocks have dominated U.S. equity performance so far this year, recently the rest of the market has been trying to take the baton. We discuss the main factors needed to make a clean handoff.

The latest Business Outlook Survey largely confirmed further normalizing in a few key areas that the central bank has deemed critical to future inflation trends.

While AI and the Magnificent 7 have been exceedingly visible in their leadership, we spotlight two other trends with a clear impact on portfolio performance and how to approach U.S. equities as the economic environment inevitably evolves.

There hasn’t been this much rental housing under construction in Canada in a generation—which is encouraging news given the acute supply shortages across the country. But even more construction will be needed as rental demand continues to rise rapidly...

Find out three ways U.S. debt can affect Canada.

The federal government’s debt has doubled since 2015 – and shows no signs of turning around.

Gen AI holds the potential to get Canada’s economy growing again through accelerated innovation and productivity. The big question is whether Canadian businesses and public sector organizations will seize the moment.

Evidence has continued to build that the current high level of interest rates is no longer needed. All ducks appear to be in a row for the Bank of Canada (BoC) to kick-start the policy easing cycle and lower the overnight rate by 25 basis points to 4...