It’s been a financial — and emotional — roller coaster ride for global stock markets, especially for those of a certain retirement age.After falling more than 1,000 points on Monday, the Dow Jones industrial average gained almost 717 points on Tuesday, recouping most but not all of its losses from the day before. It wound up 309 points, or 0.8% higher.Japanese markets gained more than 10% after its worst one-day losses since the Black Monday crash in 1987.But even with Tuesday’s gains, US markets are still down almost 5% or 2,000 points since July 31..Toronto stocks didn’t fare as well, losing 226 points or about 1% — it’s down about 1,200 points or about 5% since last Wednesday.Reasons for the sudden volatility were varied, citing everything US unemployment numbers, interest rates and currency fluctuations that portend a looming recession in the world’s largest economy. But savvy analysts pointed to the unwinding of the so-called ‘carry trade’ where traders borrow foreign currency — typically Japanese Yen —at favourable rates and buy stocks on US markets..While interest rates are going down in the US and Canada, the Bank of Japan last week raised its rates to their highest levels in 15 years at just 0.25%. That compares with 4.5% in Canada, although the prime rate for mortgages is closer to 6.75%.The US Federal Reserve is expected to lower its rate in September, which stands at 5.5%.The inherent volatility had a trickle down affect on other assets such as gold, which was down about USD$20 to $2,391 per ounce, the lowest since July.After falling as much as $5 per barrel in recent days, North American oil prices were steady at $73.02, up about eight cents on the day. Canadian oil was down about 98 cents to $58.54 — down more than $10 since July 8.Even crypto currencies took it on the chin. After falling below $50,000 on Monday — the first time since February — Bitcoin rallied more than $2,500 or 5% on Tuesday to close back above $56,562 but still well of its year-high of $73,135 recorded in March..Though the volatility may seem unsettling to some, analysts said the sky isn’t falling and to expect even more tossing and turning in the weeks ahead.New York-based LPL Financial noted that in 94% of the years since 1928, the market has experienced a pullback of at least 5% over three times per year and a correction of 10% or more at least once per year, even in positive years, portfolio manager George Smith wrote in a Tuesday report.“While such sharp declines in equity prices are concerning, looking back at historic data…reminds us that dips, pullbacks and corrections of 10% or more are a normal and healthy part of any bull market.“.This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
It’s been a financial — and emotional — roller coaster ride for global stock markets, especially for those of a certain retirement age.After falling more than 1,000 points on Monday, the Dow Jones industrial average gained almost 717 points on Tuesday, recouping most but not all of its losses from the day before. It wound up 309 points, or 0.8% higher.Japanese markets gained more than 10% after its worst one-day losses since the Black Monday crash in 1987.But even with Tuesday’s gains, US markets are still down almost 5% or 2,000 points since July 31..Toronto stocks didn’t fare as well, losing 226 points or about 1% — it’s down about 1,200 points or about 5% since last Wednesday.Reasons for the sudden volatility were varied, citing everything US unemployment numbers, interest rates and currency fluctuations that portend a looming recession in the world’s largest economy. But savvy analysts pointed to the unwinding of the so-called ‘carry trade’ where traders borrow foreign currency — typically Japanese Yen —at favourable rates and buy stocks on US markets..While interest rates are going down in the US and Canada, the Bank of Japan last week raised its rates to their highest levels in 15 years at just 0.25%. That compares with 4.5% in Canada, although the prime rate for mortgages is closer to 6.75%.The US Federal Reserve is expected to lower its rate in September, which stands at 5.5%.The inherent volatility had a trickle down affect on other assets such as gold, which was down about USD$20 to $2,391 per ounce, the lowest since July.After falling as much as $5 per barrel in recent days, North American oil prices were steady at $73.02, up about eight cents on the day. Canadian oil was down about 98 cents to $58.54 — down more than $10 since July 8.Even crypto currencies took it on the chin. After falling below $50,000 on Monday — the first time since February — Bitcoin rallied more than $2,500 or 5% on Tuesday to close back above $56,562 but still well of its year-high of $73,135 recorded in March..Though the volatility may seem unsettling to some, analysts said the sky isn’t falling and to expect even more tossing and turning in the weeks ahead.New York-based LPL Financial noted that in 94% of the years since 1928, the market has experienced a pullback of at least 5% over three times per year and a correction of 10% or more at least once per year, even in positive years, portfolio manager George Smith wrote in a Tuesday report.“While such sharp declines in equity prices are concerning, looking back at historic data…reminds us that dips, pullbacks and corrections of 10% or more are a normal and healthy part of any bull market.“.This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
