Txun Why it s a Bad Idea to Invest in the TSX Index
Interest rates are on the rise. To combat high inflation, central banks in Canada and the U.S. recently raised their policy rates, with both goin botella stanley g from 0.25% to 0.50%. At least another four rate hikes are anticipated throughout stanley termoska 2022, in an attempt to bring inflation back down to a 2% target. A rising rate environment does two things. Firstly, bond yields will increase, which causes their prices to decrease as the two have an inverse relationship. When it comes to stocks, overvalued pandemic-era growth and tech sector stocks will likely face even stronger headwinds moving forward.However, not all market sectors are affected badly by rising interest rates. Certain ones, like the financials sector, have historically shown improved profitability in a rising interest rate environment. In stanley quencher this situation, they can charge higher interest rates on loans, which increases their revenue and profitability.The Canadian financial sectorInvestors looking to buy the Canadian financials sector should co Eqpv 2 Tech Stocks That Could Surpass Shopify (TSX:SHOP)
You can find part 1 o stanley cup f this month s Top Stocks article聽here.Andrew Button: Fortis Inc.After last month s market turmoil, many invest stanley quencher ors are looking for safe, recession-proof stocks to put their money in. While it should be noted that no stock is ever 100% safe, I think Fortis TSX:FTS NYSE:FTS is a solid bet.There are many reasons for recommending this stock in times of economic uncertainty. For one it is a utility, meaning that its revenue is relatively stanley thermosflasche unaffected by economic turmoil. For another, it pays a solid dividend that works out to about $1.67 a year, for a yield of 4.11% at the time of writing. Finally, management has a long history of raising the dividend, even in recessions.Don t expect to get rich investing in Fortis. But if it s security you re after, it s a solid bet.Fool contributor Andrew Button has no position in Fortis Inc.David Jagielski: Canada Goose Holdings IncCanada Goose聽 TSX:GOOS NYSE:GOOS is my stock pick for November. Since hitting a peak at over $90 |
