South of the border, the Fed raised rates by 0.50%. The rise was as expected. This was a step down from three consecutive 75 bps hikes. Canada is following a similar rate path in its battle to kill inflation. Markets initially cheered positive inflation in the US (Tuesday) and then Fed Chair Powell’s tough talk, markets fell later in the week. Central bankers continue to try to convince market makers that they will take a slowdown over stable or persistent inflation. We have an inflation-killing breed in Sunday Reads.
Here it is 2022 US Tariff Hike History:
- 0.5%: Increased by 25 bps on March 17
- 1%: Increased by 50 bps on May 5
- 1.75%: Increased by 75 bps on June 16
- 2.5%: Increased by 75 bps on July 28
- 3.25%: increased by 75 bps on September 21
- 4%: Increased by 75 bps on November 3
- 4.50%: Increased by 50 bps on December 15
I was Back at MoneySense This week suggests somewhat chaotic and volatile markets. But all in all, stock markets are pricing in a gentle descent into recession. Most economists are united in predicting some form of recession.
And we More in the long run Presents John at Mauldin Economics. Now it’s all about where we land and how long we stay.
US stocks fall 20% in 2022 Canadian shares are just 8%. The Canadian high dividend outlook for 2022 is essentially flat and in the 3% to 4% range over last year.
Lance Roberts (no relation) is a regular read for me. Here is the investment outlook for 2023 Central Bank Centres.
Tax loss harvesting
This is the last call for tax loss harvesting for 2022. December 28 inclusive.
A reader asked if we should be concerned about a stock being sold to generate a capital gain. Selling a winner to book some gains offset by capital losses is certainly not a bad strategy. As you know, we have to wait 31 days to buy back a lost stock or ETF so that we don’t create a superficial loss. But we can turn around and buy back the winner – whenever you want.
No superficial gain. You can buy and sell it on the same day and trigger profit. This loss is applied against any gains made in the current year and if there are still net losses, they can carry them back for 3 years or carry forward indefinitely.
financial planner, Mark McGrath
In the weekend course at My Own Advisor, Mark Creating his own code. As I discovered many moons ago, it doesn’t take much stock to reflect an index. Or at least get ‘closer’ to reflecting return and risk characteristics. In 2015, I shorted 15 large-cap dividend achievers and added skims to 3 stocks I already owned – Apple (AAPL), BlackRock (BLK) and Berkshire Hathaway (BRK.B). The results have been overwhelmingly positive.
Here’s ours US and Canadian stock portfolio Surpasses when it counts. The combination is designed for challenging times. It suits the occasion.
Balanced portfolio return?
At FinIndependence Hub, Vanguard suggests that perhaps a traditional balanced portfolio Best bet moving forward. You can view the recent earnings history of Balanced Models Asset Allocation ETF page.
And of course, you can Build your own ETF portfolio.
Readers will know that I love the idea of loading in some inflation protection to classic balanced portfolio models. You can take care Energy stocks And the objective is Real Asset ETF – PRA.
Dividend and portfolio updates
Bob at Towcon wrote his November portfolio Performance post.
Matthew also has Run the numbers All about dividends.
And you can see Number of Dividends On passive Canadian income.
Checking in Share stories and blog posts of the week – go to the Dividend Hawk.
Dividend was in the mix called Hawk Buy Canadian utility stocks 2022 and beyond, from Dawn on Stock Trading.
In Pension Statement – Were you nervous before you retired??
In this case, we have Honeymoon phase in retirement on the doctor.
Thanks for reading. As always, when there is a lot of noise and uncertainty, we should stick to our investment plan. In accumulation mode, add money in regular schedule. If you get it at a low price, it’s great. You can accumulate more shares linked to bigger dividends.
Retirees should understand the risks and be prepared beforehand. I hope that’s the case for retirees and near-retirees reading Cut the Crop Investing.
Happy Sunday. Enjoy the World Cup.
When you cut the crap…
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Retirement Fund Planning
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Our savings accounts
Make your money harder EQ Bank. RRSP and TFSA account savings rates are 2.0%. You will find some higher fees on GICs, which have recently been revised and increased to 3-4%. They also offer US dollar accounts. We use EQ Bank and they’ve been fantastic.
Our Cashback Credit Card
We earn $50 to $70 every month! And that’s just the day-to-day expenses. There is no charge with…
Tangerine Cash Back Credit Card
Last month we received $75 cashback. We spend too much, ha.
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