In this episode of The Canadian Macro Investor, Simon and Dan break down the Bank of Canada’s latest rate hike and the major shift in its inflation outlook. The Bank now expects inflation to remain elevated for longer, has pushed its return to the 2% target out to 2028, and is openly acknowledging that higher rates could put additional pressure on already-weak housing markets in Toronto and Vancouver.
They then dig into new CMHC data showing growing stress beneath Canada’s mortgage market. Delinquencies among mortgage investment entities have climbed above 11% in the Greater Toronto and Hamilton Area, while more borrowers are seeing their credit deteriorate and mortgage losses continue to build. They also look at Allied Properties REIT after another massive distribution cut sent the stock plunging roughly 30%, and discuss whether the struggling office REIT ultimately needs to be acquired.
Finally, they turn to the AI trade after Google suffered a double-digit post-earnings selloff. Search growth is slowing, AI queries are proving harder to monetize, depreciation is surging and Google expects another significant increase in AI capital expenditures next year. Simon and Dan discuss why the strongest hyperscalers may survive the AI spending boom while heavily leveraged NeoClouds face a much more difficult path as financing dries up.
They wrap up with what companies such as Coca-Cola, Pepsi, Walmart and McDonald’s are telling investors about the increasingly stretched consumer—and why more households are choosing value and eating at home as higher prices and borrowing costs continue to bite.
Stocks discussed: GOOGL, META, MSFT, CRWV, ORCL, AP.UN.TO, TFI.TO, CP.TO, KO, PEP, WMT, MCD
Watch the full video on Our New Youtube Channel!
Check out our portfolio by going to Jointci.com
Want to learn more about Real Estate Investing? Check out the Canadian Real Estate Investor Podcast!
Apple Podcast - The Canadian Real Estate Investor
Spotify - The Canadian Real Estate Investor
Web player - The Canadian Real Estate Investor
Sign up for Fiscal.ai for free to get easy access to global stock coverage and powerful AI investing tools.
Register for EQ Bank, the seamless digital banking experience with better rates and no nonsense.
Asset Allocation ETFs | BMO Global Asset Management
This podcast Ad Read is intended for information purposes only. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment, tax, or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. Past performance is no guarantee of future results. The viewpoints expressed by the speaker represent their assessment of the markets at the time of recording . Those views are subject to change without notice at any time. Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
For a summary of the risks of an investment in the BMO ETFs, please see the specific risks set out in the BMO ETF’s prospectus. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination. BMO ETFs are managed by BMO Asset Management Inc., an investment fund manager, a portfolio manager, and a separate legal entity from Bank of Montreal.
BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate. “BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.
See omnystudio.com/listener for privacy information.