Make Money Count

Inverted Bond Yield Curve & Why the US Dollar is Rising - Make Money Count 046


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Toronto's best mortgage brokers, Cannect Home Financing, return with Make Money Count. We explain what an Inverted Bond Yield is, and why the US Dollar is rising as we head into a recession. Yet, we're happy to say it looks like we are seeing some optimism in the U.S. Markets!

Marcus Tzaferis and Justin Turner take the listeners through a few positive economic indicators. According to an article on Barron's, we may be seeing a peak in bond yields and the US dollar index. If this is the case, it could be a precursor to a rally for US markets. Why is this?

Listen to the episode to find out!

This cautious optimism entirely depends on inflation and the direction central bankers take. To show how quickly times have changed, the United Nations advised central banks around the world to pause rate hikes. This isn't unprecedented, but it is very rare. People are already feeling the impact of these rate hikes and for some countries this means hardship. As a result, for developing nations, it means people can't put food on the table.

Your favourite brokers also answer some questions regarding home equity loans during these times of high interest rates. If you are looking to access equity, you need to carefully weigh the market uncertainty. First, weigh the premiums that come with it against the possibility of equity erosion if you wait too long.  Second, borrowing to invest also needs to be done carefully right now. Given how high rates are right now, you need to be very confident.

The value and growth potential of the investment needs to justify the cost of borrowing. Similarly, some equities are at huge discounts right now. However, these opportunities still need to be evaluated carefully.

If you're looking for a stable investment to get you through these economic hardships, take a look at the Cannect Mortgage Fund.

 

0:00 - Introduction

1:59 - Leading indicators say the U.S. Markets might be starting to recover.
4:12 - Justin’s trip to BC: things are expensive there.
6:59 -  Barron’s article: 2-year bond yield and the US dollar index plateauing are positive leading indicators for the U.S. Markets.
13:42 - The market acts as a psychological barometer for people.
17:26 - Cannect only aims to provide an unbiased view of the real estate market, as illustrated from a clip a year ago.
19:59 - Marcus is doing “Sober October”.
23:30 - In Canada, you can get a mortgage with term lengths from 1 year to 15 years. This is important to remember if you are coming out of a cheap 5-year fixed rate in the next few years.
28:41 - The United Nations advised the central banks around the world to pause rate hikes.
30:56 - A home equity loan is likely the solution for a borrower looking to access equity, but has lost their job.
34:02 - Borrowers looking at 2nd mortgages need to weigh the market uncertainty and premiums that come with it against the possibility of equity erosion if they wait too long.
37:02 - If you are borrowing to invest right now, make sure you are extremely confident in the capital gain potential of the investment you are making.

 

#MakeMoneyCount #Cannect #CannectHomeFinancing

 

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Make Money CountBy Cannect Inc.

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