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  • At midday: TSX hits near-three week low on concerns over U.S. policy tightening

    At midday: TSX hits near-three week low on concerns over U.S. policy tightening (Apr 6, 2022)

    Canada’s main stock index fell on Wednesday, with technology and financial shares leading declines, as investors fretted over the prospect of aggressive policy tightening by the U.S. Federal Reserve to tackle inflation.

    The Toronto Stock Exchange’s S&P/TSX composite index was down 148.11 points, or 0.68%, at 21,782.72, its lowest level since March 18.

    On Wall Street, the Nasdaq led declines for a second straight day, ahead of the minutes of the Fed’s March meeting that could indicate just how fast and how far policymakers would proceed in shrinking a massive balance sheet and raising interest rates.

    The information technology sector was the biggest decliner among Canada’s 11 main sectors, with a 4.3% drop. Valuations and returns of growth and technology stocks are discounted deeply when rates go up.

    “Its a sour mood. The equity market doesn’t like rising interest rates, too high inflation, a recession and war. So you got four big uncertainties and no one can talk about anything positive right now – that sentiment will have to play out until it ends,” said Barry Schwartz, portfolio manager at Baskin Financial Services.

    “It’s just the velocity of the moves in the treasury markets and the fact that there’s still no continued resolution in Russia, the markets are now starting to price in much slower growth going forward.”

    Artillery pounded key cities in Ukraine, as its president urged the West to act decisively in imposing new and tougher sanctions being readied against Russia. Separately, the Kremlin said peace talks with Kyiv were not progressing as rapidly or energetically as it would like.

    The financials sector fell 0.7% with Bank of Nova Scotia and Toronto-Dominion Bank among the most heavily traded shares. The industrials sector slid 1.5%.

    The Nasdaq slumped 2% on Wednesday as tech stocks extended their selloff for a second straight day on mounting concerns over aggressive actions by the Federal Reserve to fight inflation, with minutes from the central bank’s March meeting on tap.

    Shares of megacap growth companies such as Microsoft , Apple and Amazon.com tumbled between 2.2% and 3.3%, dragging down the Nasdaq and the S&P 500.

    High-growth stocks, whose valuations stand to be pressured by higher bond yields, bore the brunt as the benchmark 10-year yield hit a three-year high.

    Fed Governor Lael Brainard said on Tuesday she expected a combination of interest rate hikes and a rapid balance sheet runoff, sparking losses on Wall Street.

    “The pre-earnings rally has now been somewhat cut short due to surging yields and a very strong dollar,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

    “The Fed minutes today will likely show an even more hawkish attitude by the Fed members. I think they’ll point to a half-a-percent rise next month.”

    The Federal Open Market Committee’s minutes, set to be released at 2 p.m. ET (1800 GMT), could indicate how fast and how far policymakers will proceed in trimming several trillion dollars from the stash of assets purchased to stabilize financial markets through the pandemic.

    While estimates of the impact vary, Fed Chair Jerome Powell after the March meeting said the reductions might have the same effect as an additional quarter-point increase in short-term rate.

    Traders now see 83.1% odds of a 50 basis points rate hike at the central bank’s meeting next month.

    The CBOE Volatility index, also known as Wall Street’s fear gauge, rose to 24.36 points, its highest since March 21.

    U.S. stock markets had a rough start to the year as the prospects of a more hawkish Fed weighed on growth shares, while the war in Ukraine compounded worries over rising inflation.

    The United States targeted Russian banks and elites with a new package of sanctions on Wednesday that includes banning any American from investing in Russia, after Washington and Kyiv accused Moscow of committing war crimes in Ukraine.

    The Dow Jones Industrial Average was down 237.28 points, or 0.68%, at 34,403.90, the S&P 500 was down 54.20 points, or 1.20%, at 4,470.92, and the Nasdaq Composite was down 328.14 points, or 2.31%, at 13,876.03.

    Among other stock movers, JetBlue Airways Corp slid 8.4% after the carrier said it made an unsolicited $3.6 billion bid for Spirit Airlines Inc, potentially snarling merger plans between the ultra-low-cost carrier and Frontier Group Holdings Inc.

    Frontier Group and Spirit Airlines fell 10.2% and 3.0%, respectively.

  • The most intriguing policy idea in the federal government’s new Emissions Reduction Plan is to fix something that is far shakier than it might appear: the carbon pricing system that is supposed to underpin Canada’s entire climate strategy.

    CLIMATE POLICY – Carbon Pricing

    At first glance, that system might appear to be on more solid ground than ever before. An increase in the federally imposed carbon price, bringing it to $50 per tonne, just took effect on Friday. Further annual increases of $15 per tonne seem assured for the next couple of years, courtesy of a Liberal-NDP agreement meant to keep the current government in power until 2025.

    But that doesn’t mean it will keep rising, as currently scheduled, all the way to $170 per tonne by 2030 – not when the federal Conservatives, the likeliest alternative to the Liberals in the next election, appear to be shifting back to carbon-pricing opposition after flirting with support for it.

    And that political instability is a big impediment to carbon pricing fulfilling its biggest purpose, which is to incentivize big, long-term investments in clean technology that don’t offer enough financial upside otherwise.

    Speak to leaders of large Canadian industries – including, very notably, the oil and gas sector – and you will hear less opposition to carbon pricing than frustration with the uncertainty around its future. If they knew it would keep going up as planned, they say, it would drive adoption of carbon capture, electrification, and other means of reducing emissions. Without that confidence, they feel at risk of high costs if the price does keep going up, but reluctant to spend in ways that won’t pay off if the price is flattened or scrapped altogether.

    So there was very good reason for Ottawa to announce in the Emissions Reduction Plan (ERP) that “to enhance long-term certainty” it will be “exploring measures that help guarantee” the carbon price. That was mostly a reference to developing a mechanism to reduce the private sector’s exposure to risks from policy changes – ensuring companies will get the benefits from investments contingent on carbon pricing reaching a certain level, even if that doesn’t actually happen.

    And it was equally encouraging to get the impression from Environment Minister Steven Guilbeault, in an interview with The Globe and Mail following the ERP’s release, that the government is readier to move than the exploratory language in the plan made it sound.

    “I think this is something we can do very quickly,” he said, anticipating only “a matter of months” to choose from possible methods.

    The biggest risk of Canada’s net-zero strategy? Not reaching net zero

    It’s sink-or-swim time for Canada’s oil and gas industries

    There is some cause for skepticism about the government moving at quite that pace, given its usual slowness. But it should help in this case that a credible idea for how to achieve greater carbon pricing certainty is already in play.

    Known as “contracts for differences,” and explicitly mentioned as an option in the ERP, it was first proposed in a C.D. Howe Institute paper last year by Dale Beugin of the Canadian Climate Institute and Blake Shaffer of the University of Calgary.

    The arrangement would boil down to a transfer of risk from private investors to the government. A public entity, such as the Canada Infrastructure Bank, would commit in advance to paying a company investing in a clean-technology project a specific amount, based on the anticipated value attached by carbon pricing to that project’s reduction of emissions. If the carbon pricing did not go up as expected, the government, rather than the company, would be on the hook for the lost revenue; if the carbon price went up more stringently than expected, the government would be the beneficiary.

    It’s important here, contextually, to understand that this would not be primarily about the version of carbon pricing paid by Canadian families and smaller businesses. It would mostly apply to the system that covers large industrial emitters, in which companies can not only generate savings for themselves by reducing their emissions, but also earn credits they can sell to other emitters.

    That’s where much of the worth for big clean-tech investments is supposed to come in – but again, only if there’s enough policy certainty. And while the Conservatives have not outright opposed industrial pricing, the way they have with the levy paid by most consumers, they have been non-committal at best on increasing its stringency.

    It’s also worth considering how much the lack of certainty may be costing the government at the moment. The less that industries can count on carbon pricing to make their emissions-reducing investments economical, the more they are able to make a compelling case for subsidies, such as the large carbon-capture tax credit expected in next week’s federal budget.

    The contracts for differences would not be ironclad, exactly. A new government could conceivably tear them up. But it would be given pause before doing so because such an action would open it up to lawsuits and compensation costs, and perhaps more importantly, reputational damage to Canada’s broader investment climate.

    The mechanism would also provide disincentive to scrap or weaken carbon pricing itself, since that would leave the government on the hook for large sums of money.

    For that reason, the idea’s inclusion in the new climate plan – and Mr. Guilbeault’s talk of acting quickly – is liable to be painted by Conservatives as undemocratic, because of the way it could tie their hands in future.

    That’s probably a better argument when it comes to another possibility, mentioned in the same section of the ERP, that the government will somehow try to more firmly enshrine the carbon price in law. (That prospect seems somewhat dubious anyway, since presumably future parliaments could simply roll the law back.)

    But when it comes to the contracts for differences, as Mr. Shaffer noted in an interview, governments already commit to all sorts of long-term investments and financial partnerships – in infrastructure, for instance – that are costly to break for their successors.

    There is no good reason, at this point, why carbon pricing should be any different.

    Canadians have essentially given it a green light in the last two federal elections. Industries, including those in a fossil-fuel sector that carbon pricing’s opponents claim it threatens, insist they’re ready to embrace it. It’s time to give it a chance to do its job.

  • Royal Bank Of Canada To Buy Brewin Dolphin For GBP 1.6 Bln

    Royal Bank Of Canada To Buy Brewin Dolphin For GBP 1.6 Bln

    RBC Wealth Management (Jersey) Holdings Limited, a wholly owned subsidiary of Royal Bank of Canada, announced cash offer for the entire issued and to be issued share capital of Brewin Dolphin (BRW.L) for 515 pence per share, implying an equity value of about C$2.6 billion or 1.6 billion pounds on a fully diluted basis.

    The offer prices represents a premium of 62 percent to the closing price of 318.0 pence per Brewin Dolphin Share on 30 March 2022.

    RBC anticipates completion of the transaction by end of third-quarter of 2022.

    The Brewin Dolphin Directors intends to recommend unanimously that Scheme Shareholders vote in favour of the Scheme at the Court Meeting.

  • How To Purchase Canadian Stocks

    How To Purchase Canadian Stocks

    The TSX is widely considered to be the most significant Canadian stock exchange working at present. First instituted in 1852, the TSX has grown to become the 3rd largest stock exchange in North America in regards of capitalization, only behind the Nasdaq composite & the New York Stock Exchange.

    Basics of the Toronto Stock Exchange:

    Quite identical to any U.S based stock exchange, the Toronto Stock Exchange lets investors to purchase & sell securities during their standard operation hours (9:30am to 4:00pm). Investors who purchase & sell stocks on the NYSE & the Nasdaq will find that the Toronto Stock Exchange operates within a similar time period.

    To get listed on the Toronto Stock Exchange, a company may be needed to fulfill a string of diverse regulatory standards relying especially on the business’ nature. For instance, technology firms that are looking to get listed on the TSX should first show at least $50,000,000 market value for future issued securities. Firms having specialization in research & development must show at least $12,000,000 market value for future issued securities. Other parameters with exact benchmarks that need to be met include net tangible assets, sponsorship needs, pretax earnings and operational history among others.

     

     

    Buying Canadian stocks:

    Canadian markets have long been accessible for American investors. It’s not unusual for stocks indexed on the Toronto Stock Exchange to also be indexed on foremost American exchanges. Provided that, investors can still invest directly in Toronto STOCK Exchange listed securities if they want!

    In order to do that, American investors will most probably require to sign up the services of an online brokerage that has enabled access to the Toronto Stock Exchange. Some instances of entitled brokerages include TD Ameritrade & E-Trade. Quite like a person can buy stocks from the NYSE via these online podiums, Toronto Stock Exchange stocks will also be accessible.

  • A Brief Overview Of The Canadian Stock Market

    A Brief Overview Of The Canadian Stock Market

    Whether you want to learn about Canadian stock market or want to invest in it, we at Train2invest offer Canadian stock market education & training online. We have brought you some of the basic information about the Canadian stock market so that you can understand the market well and plan your investment. Have a look and gain knowledge about the stock market before investing into it.

    What is the Canadian Stock Market?

    The Canadian Stock Market is made of one large exchange and numerous small exchanges. The main exchange of the Canadian stock market is the Toronto Stock Exchange (TSX) which is the ninth largest exchange in the world. Again the TSX has a smaller exchange related with it i.e. the TSX Venture Exchange (TSX-V) that offers lower-priced stocks from upcoming and smaller companies. Besides these two there are other exchanges, however, TSX and TSX-V are the key exchanges.

    What is TSX all About?

    Toronto Stock Exchange (TSX) is owned by TMX Group Limited, which is a financial services company with headquarter in Canada. The company operates derivatives, equities, fixed income, and energy market exchanges. The TSX includes a wide array of Canadian businesses including stocks, income trusts, ETFs and investment funds. TMX came into existence when in 2009 TSX merged with the Montreal Stock Exchange and the parent company’s name changed.

    How Canadian Stock Market Differs from the U.S Stock Market?

    Canadian stock market is quite similar to that of the U.S stock market located towards further north. Although Canada located close to the US, it is a different country; hence, there are different things in both the markets. Some of the important differences between Canadian stock market and US stock market are as follows:

    • The Canadian Stock market is much smaller in size as compared to the US exchanges. Hence, there are fewer stocks to choose with Canadian stock market.

     

    • The Canadian stock market is traded in Canadian dollars and not US dollars. $1 US dollar = $1.30 Canadian dollars (it can fluctuate depending upon various factors).

     

    • The economy of Canada primarily relies on natural resources such as mining, oil and gas related companies. That’s not the case with US market.

     

    • As the government is different, the laws are different as well.

    What are the benefits of investing in the Canadian Stock Market?

    • Major stocks at the Canadian stock market are related to natural resources such as oil and gas. It is one of the largest mineral exporters in the world, which makes it a dream of every commodity buyer.

     

    • Also, Canada is the largest supplier of potash, which is used for making fertilizer and significant in the agricultural sector.

     

    • Although  commodities can be volatile, they offer better growth opportunities. And with a myriad of commodities, people can invest considering the reliable patterns such as the seasonal aspect of these stocks.

     

    • The banking system of Canada is also considered as one of the safest and sound systems. Great balance sheets of the bank further strengthen the economy. And this positive financial position that makes the lending rates are lower than in other countries in the world.

    Want to learn more about Canadian Stock Market? Then join our Canadian Stock Market Education & Training sessions today. More info at https://train2invest.com/

  • Everything You Need To Know About The Stock Market

    Everything You Need To Know About The Stock Market

    If the idea of investing in the stock market makes you frightened, you’re not alone. People with pretty limited knowledge in stock investing are either horrified by terrible tales of the mediocre investor losing fifty percent of their portfolio value or are induced by “hot tips” that give the assurance of massive rewards but pay off seldom. So, it’s not surprising to see the pendulum of investment swinging between greed and fear.

    The fact is stock market investment carries risk, but when followed in an educated manner, it’s one of the best ways to build up your net worth. While the value of one’s house usually accounts for most of the net worth of the average person, the majority of rich individuals usually have the mainstream of their wealth invested in stocks.

    What’s the definition of stock?

    A stock is a monetary tool that depicts ownership in a company and depicts a proportional claim on its assets & earnings.

    Ownership of stock indicates that the shareholder owns a part of the corporation equivalent to the number of shares held as a fraction of the corporation’s total outstanding shares. For example, an entity or individual that owns 100,000 shares of a corporation with one million outstanding shares would have a 10 percent ownership stake in it. Most companies have outstanding shares that count in millions or billions.

    What’s a stock exchange?

    Stock exchanges are secondary markets, where existing share owners are allowed to transact with prospective buyers. It’s critical to comprehend that the companies indexed on stock markets don’t buy & sell their own shares on a daily basis. So when you purchase a share on the stock market, you’re not purchasing it from the corporation, you’re purchasing it from some other existing shareholder. Similarly, when you put your shares for sale, you don’t sell them back to the corporation – instead you sell them to some other investor.

    Getting a full deep knowledge regarding trade and understanding the strategies to make a profit in stock trading is critical to become a successful & outstanding trader. You are required to join a good stock market training program to get the best results out of trading. If you are serious about earning a good return from the stock market, Train2Invest is the best program you can consider joining. In fact, this program is the ultimate in Canadian Stock Market Education & Training.

  • Understanding Stock Market and Investment – Important Terms to Know

    Understanding Stock Market and Investment – Important Terms to Know

    Are you considering to take investment training & education in Canada before taking a plunge into the stock market? Then we at Train2Invest will be glad to help and assist you with stock trading and investing in Canada.

    Important Terms To Know

    Before getting into the stock market take a look at some of the important terms that you need to know.

    • Robo Advisor –

    Robo advisor is a digital platform that provides automated investment management at a low cost.

    • Online Broker –

    An independent platform that allows investors for stock trading, bond trading, ETFs and mutual funds on their own without taking help of any investment advisor. Online broker is also termed as a discount broker.

    • Exchange Traded Fund (ETF) –

    An Exchange Traded Fund usually carries a basket of stocks and bonds from a sector, country or region. ETFs are bought and sold on the stock market just like individual stocks.

    • Index Fund –

    An ETF or mutual fund that tracks an unambiguous standard or market index. The goal is for the index fund to match the returns of that standard index.

    • Management Expense Ratio (MER) –

    The Management Expense Ratio (MER) of an ETF or mutual fund, which includes the fees, operating expenses, taxes and trailing commissions involved in managing the fund. The lower the MER, the higher is the expected future returns.

    • Equities –

    Buying shares of a company means buying equity in the business for investing in stock market.

    • Fixed Income-

    Fixed income is the investment that includes an interest payment such as bonds that make up the fixed income portion of an investment portfolio.

    • Asset Mix-

    Asset mix refers to the percentage of your portfolio held in stocks or equities and in fixed income or bonds. It can also include other assets such as real estate, cash and precious metals.

    • Asset Allocation ETF –

    A single ETF containing several other ETFs from around the globe that includes equity and bond ETFs. It is rebalanced automatically for maintaining its original target asset mix.

    How Short Term Investing and Long Term Investing Differ

    Short term investments are different from that of investing for long term saving. Therefore, the type of investments you choose depends upon what you are saving for and when you need the money.

    Stocks, Mutual funds and ETFs are suitable for long term investments that are usually more than 10 years. However, if you are saving money for a house down payment, for instance then GICs (Guaranteed Investment Certificates) or a high interest savings account will be the best bet for you.

    Besides these there are several other aspects of stock trading and investing that you need to learn before getting into the stock markets. Our investment training & education in Canada at Train2Invest are designed specifically to help you trade and invest in stock markets (TSX) without experiencing huge loss. We make you understand the market and its trends to keep you updated. Want to know more? Contact us today.

  • Canadian Market and Cannabis Industry – A Few Facts

    Canadian Market and Cannabis Industry – A Few Facts

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    Literally, you can find thousands of stocks in the Canadian market for investment however there are a few dozen of marijuana industries that are gaining a lot of buzz. And the popularity is obvious as the cannabis stocks are a long-term profitable investment. If you are an investor who has a foresight backed by good luck investing in some of the biggest cannabis stocks will be a great decision as the possibility of gains gets higher. But there is much more to investing in the cannabis stock market.

    If you are looking for investment training & education in Canada to make the best investments then you need to understand a few things about the Canadian stock market especially the marijuana industry.


    • Marijuana Industry is Fast-Paced


    The growth rate of the marijuana industry is always on the higher side. An average compound annual growth rate for cannabis is anticipated to be doubled  over the next decade. That is why the popularity of marijuana is not going to die off anytime soon.


    • Marijuana Craze is Never Ending


    Investing in marijuana stocks implies that you can consider more than just growers. Although the number of pot growers are plenty to choose from, you can also go for buying subsidiary players that work their magic behind the scenes.


    • Cannabis has Medical Benefits!


    Cannabis in the medical industry has long been a popular way to invest in the industry. Although there are several studies that have discovered intriguing correlations between medical pot and certain diseases, the U.S. Food and Drug Administration (FDA) identifies cannabis and its cannabinoids have two benefits. But marijuana is largely unknown to the FDA that makes cannabis one of the top jewels in the U.S. market.


    • Not every company is a winner


    Be it the marijuana industry or any other sector not every company can be a winner. So you need to explore different companies and choose the one that has higher potential.


    • CBD and derivative products are the real money-makers


    Although you might have a perception like others that dried cannabis flower is the money maker of the cannabis industry, but the fact is it is a low-margin product for most of the companies. The derivative products like vapes, infused beverages, topicals, edibles and concentrates that drive margins higher primarily. Also, derivative pot products, especially focused on CBD (Cannabidiol) are not as susceptible to oversupply and commoditization as dried flower which further makes the pricing power firmer and provide better margins.

    Besides these there are several other facts about the Canadian stock market and cannabis industry, which you can understand with our specialized investment training & education in Canada.

    How TRAIN2INVEST Program Helps?

    Our TRAIN2INVEST program is a comprehensive 6-month hands-on learning and mentoring experience with the option of ongoing coaching and support as determined by the student.  Our TEACH, TRAIN, and COACH approach delivers complex issues in bite-sized modules eliminating information overload and targeting critical information analysis for decision making.

    We believe our training strategy is capable of allowing anyone to learn about wealth accumulation and money management. Our investment training and education in Canada provides real-world experiences to you. Through a systematic progression of teaching, training, coaching and mentoring, we enable students to acquire higher levels of wealth intelligence that they can use to improve the quality of their lives.

    If you want to gain knowledge about stock market investment in Canada or money management skills, then take our investment training & education Canada program today.