Market View

At the Fed’s Jackson Hole conference this week, the Federal Reserve Chair Jerome Powell said that the US central bank is willing to continue raising rates if needed and also demonstrate a determination to keep borrowing costs high until inflation is on the clear path to the 2% target. In addition, existing home sales dropped 2.2% from June, while consensus expects a flat reading, marking the slowest July pace since 2010. The Canadian dollar was 73.47 cents USD. The U.S. S&P500 ended the week up 0.2%, while the TSX was mostly flat.

A week of mixed performance including a 4.1% drop in healthcare and a 2.3% drop in energy. Financials gave up 1.5%. Technology and Materials added 3.3% and 1.7%, respectively. Consumer discretionary ended the week slightly down 0.3%. The most heavily traded shares by volume were Toronto-Dominion Bank, BlackBerry, and Cenovus Energy.

5 from 5i

Here are five reads we found interesting last week:

•  The Dawn of AI: Pricing Power & Profits in Nvidia’s Business, By Tomasz Tunguz

• Real Rates Aren’t Your Real Friends, authored by Jon Sindreu of The Wall Street Journal

• One Investing Trait to Rule them All, published by Flyover Stocks

• The Great and Awful Thing About These Interest Rates, authored by Michael Batnick of Ritholtz Wealth Management LLC

• Should We Expect Valuations to Mean Revert Over Time?, written and published by Byrne Hobart of The Diff

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.