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2015

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Canadian Economy on the Edge, Frigid Temps and #BestThisWeek

It’s evident that the Canadian economy is on the verge of a major bust due to the sharp decline in the price of oil. The situation is dire, and there’s a high probability that it may plummet soon. Layoffs in Alberta are just the beginning of the ripple effects that will soon be felt across the country. The US economy could experience a surge due to the lower oil prices, leading to a significant divergence in the neighbouring economies’ trajectories. This scenario poses several challenges that need to be addressed urgently.

  • A quickly weakening Canadian Dollar means many imports are going to get very expensive (very quickly). The other side of that sword is Canadian exports (that are not commodity based) suddenly get cheaper (to the rest of the world).
  • American investments in your RRSPs will strengthen with the weakening dollar, but Canadian stocks may take a hit, due to the weakening economy.
  • Interest rates? Could go either way really, given imports will increase in price, but gas prices continuing to drop may offset.

Buckle up folks this is going to be a very rough (economic) ride ahead.

In Ottawa we have been having our standard bitter cold (not bitter cold like in Alert, but still cold), which means the Rideau Canal skateway is open, and driving is quite exciting with all of the black ice. Too bad it’s going to cost more to vacation down south this winter (again with the weakening Canadian Dollar).

Repeat Site note: If you feel so inclined my site now has a cert, so you can now read https://www.canajunfinances.com if you so choose. I am still knocking the kinks out of things, but it should work just fine for you.

My Writings for Week Ending January 16th

I turned 54 this week, life continues on, but I am 1 year closer to my retirement. Maybe (and more likely, maybe not):

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