Macroscope Archives - Luft Financial

July 10, 2020

MACROSCOPE No.39: Silver lining in the gradual erosion of TSX’s “Big Three” sectors

Back in 1930, Canadian economist Harold Innis used the Biblical phrase “hewers of wood and drawers of water” to describe the Canadian economy’s traditional economic dependence on resource production. That skewed impression of the Canadian economy lingers to this day, despite the services sector employing more than 80% of working Canadians, while less than 20% […]

June 26, 2020

MACROSCOPE No. 38: Little reaction to Canada’s credit rating downgrade by Fitch

On June 24, Fitch Ratings cut Canada’s AAA credit rating1 by one notch to AA+, saying the downgrade reflected “the deterioration of Canada’s public finances in 2020 resulting from the coronavirus pandemic.” Is this the harbinger of more rating cuts, and what impact will this downgrade have on your finances? Click here to read rest […]

June 19, 2020

MACROSCOPE No. 37: The effect of the “Powell Put” and “Moral Hazard” on your portfolio

The U.S. Federal Reserve (the “Fed”), the most influential and powerful central bank in the world, was instrumental in helping the equity market find a floor on March 23. The Fed’s actions announced on that date contributed to the about-turn in investor sentiment that enabled markets to stage a historic rebound in ensuing weeks. However, […]

June 12, 2020

MACROSCOPE No. 36: After coming full circle in record time, what next for the markets?

The ferocity of the “Coronavirus Correction” has been matched by the velocity of the subsequent rebound, bringing the markets full circle in record time of just about 16 weeks. What comes next?On June 8, the S&P 500 briefly turned positive for the year (Figure 1), no mean feat considering it was down as much as […]

May 29, 2020

MACROSCOPE 34: What does the rotation to value from growth mean for your portfolio?

The big investment theme this week has been the rotation to value stocks from technology, the quintessential growth sector. What does this mean for your portfolio? Most stocks can be classified as value or growth, depending on certain characteristics or “factors.” Index leader S&P Dow Jones Indices uses three factors each to measure growth and […]

May 22, 2020

MACROSCOPE No.33: Pandemic will usher in long-lasting change in many areas

The pandemic is shaping up to be one of those momentous events that change the way we go about a lot of things in our daily lives. Consider how, in the aftermath of the 9/11 attacks, stringent security checks forever changed the experience of taking a flight. Because the pandemic’s far-reaching effects straddle areas – […]