Interest Rates Hover
The Bank of Canada kept one of it’s key rates (the overnight rate) the same yesterday in response to a shakier Canadian Economic view. This means interest rates have flattened for now, and may well be heading back up very soon.
To quote them directly:
Three major developments are affecting the Canadian economy: the protracted weakness in the U.S. economy; ongoing turbulence in global financial markets; and sharp increases in many commodity prices.
Turbulence is never a good thing and I think the bank is reflecting that in it’s monetary policies, by holding interest rates steady.
For someone like me, it suggests that now is the time to start paying down debt, because we may have hit the bottom of the interest rates market, and rates going up is going to mean more money that will have to be spent on Debt Reduction due to interest charges (all my debt is carried in variable interest rate debt vehicles).
Larry MacDonald’s blog is one that I read every day, and I was heartened to see that he and I are not only friends in the N.C.F.B.A. but we are kindred spirits in terms of Nortel’s stock. Larry did an excellent Update on Where Nortel Stands currently.
I was particularly touched by the last paragraph in the post:
So where is the stock going? Despite recent price action, there seems to be an improvement in expert opinion and fundamentals. Still, the situation remains speculative. And add a grain of salt to my update – I’m a long-suffering Nortel investor whose holdings are down 70%.
Glad to know that I am not the only financial blogger with scars from this stock.
TD & BMO Banks Continue to Slide
Both TD and BMO stock have been sliding and as I have said I am not sure what the bottom is, but I am starting to think this is going to be a buying opportunity (for me) very soon. I buy these stocks for straight dividend value and the fact that banks treat their customers very badly, yet the customers keep coming back.
Please take the above paragraph is me meerly navel gazing and guessing, I have no real insight about these stocks, but am interested to hear if anyone else has any opinions on my statements and TD and BMO.