Making sense of the markets this week: July 2, 2023 + MORE Jun 30th

This week, Cut the Crap Investing founder Dale Roberts shares financial headlines and offers context for Canadian investors.

What’s up with inflation? 

It’s no secret—with respect to stock markets, bond yields and the economy—inflation is still driving the bus. And the joke is that the central bankers are looking in the rearview mirror as they drive. They’re looking at data from the past, as the inflation bus hurtles forward. 

Of course, the bankers want to see lower inflation in the target range of 2%. 

Canada had a meaningful inflation report this past week. And perhaps we’ll give the inflation fight a grade of C-minus. Not great, but we’re moving in the right direction. 

Today’s data: inflation! https://t.co/6GZB1qIFQlThe headline rate dropped to 3.4% in May (a large but expected decline). Big drops in Atlantic Canada. All now below 3%! #cdnecon pic.twitter.com/w5cVSgbNmO— Trevor Tombe (@trevortombe) June 27, 2023

Canada’s CPI was in line, at 3…

A credit history is a person’s track record of using credit (borrowing money) and repaying debt. Your credit history can affect many aspects of your financial life—from getting approved for a credit card or renting an apartment to taking out a mortgage or a car loan, among other things. In some instances, even potential employers may check your credit report (a summary of your credit history).

If you’re a newcomer to Canada, a recent graduate, a student or a young adult, your credit score—a number calculated based on your credit history—is likely low or non-existent, meaning that you don’t have enough credit activity to determine a score. One of the most beneficial things you can do for your financial health is to learn how to build your credit history in Canada.

What is a credit history?

Since Canada is a credit-based economy, creditors (banks, financial institutions, credit card issuers and other lenders) need a way to gauge how likely you would be to pay back what you owe or borrowed in a reliable and timely manner…