The Q Review: July 2024
Welcome to the Q Review, a monthly report from Qtrade Direct Investing®. Each month, we'll share great information about what's been happening in the markets, what our Qtraders are doing, and what's new with us!
Let's explore the top headlines of the month and what these developments might mean for your portfolio.
Bank of Canada lowers interest rates for the second month in a row
In a move widely anticipated by the markets, the Bank of Canada cut its key interest rate by 25 basis points to 4.5%. This marks a continued effort to stimulate economic growth in response to a slowing economy. Lower interest rates can reduce borrowing costs, encouraging investments and spending. Investors should monitor how lower rates impact real estate and consumer discretionary sectors, which typically benefit from cheaper borrowing.
Wall Street’s significant selloff
Wall Street faced a turbulent July, triggered by disappointing big tech earnings and a weak jobs report. The Nasdaq 100 entered correction territory, falling 10% from its peak. Investor anxiety spiked, evidenced by the VIX Index reaching its highest level since March 2023. While selloffs can be concerning, they also present opportunities for investors to purchase undervalued stocks.
In July, the U.S. economy added 114,000 jobs, significantly below expectations and the revised June figure of 179,000. Unemployment rose to 4.3%, the highest since October 2021. These numbers highlight underlying weaknesses in the labour market, exacerbating concerns about the broader economic recovery.
Gold captivated the markets with its impressive rally, reaching a record price of $2,483.73 an ounce in July. Rising expectations of monetary easing by the Federal Reserve fuel the precious metal's ascent. Gold often serves as a hedge against inflation and currency devaluation, making it an attractive option for investors seeking safety amid economic uncertainty.
CrowdStrike's technical glitches
Cybersecurity firm CrowdStrike experienced a setback with technical glitches causing outages worldwide, which led to a dip in its stock price. While the immediate impact is negative, long-term investors may view this as a temporary setback in an otherwise robust sector.
Most bought and sold securities in July on Qtrade Direct Investing
Ten most purchased securities on Qtrade Direct Investing – July 2024
- ISHARES CORE EQ ETF PTF UN
- NVIDIA CORP
- ISHARES CORE GROWTH ETF PORT
- ISHARES PREMIUM MONEY MKT ETF
- VANGUARD S&P 500 INDEX ETF UN
- BCE INC NEW
- GLOBAL X S&P 500 INDEX ETF
- TELUS CORP
- TESLA INC
- BK OF NOVA SCOTIA
Ten most sold securities on Qtrade Direct Investing – July 2024
- TESLA INC
- NVIDIA CORP
- BNS INV SAV ACT SR F -NL
- TORONTO DOMINION BK
- ENBRIDGE INC
- TELUS CORP
- BCE INC NEW
- BK OF NOVA SCOTIA
- ISHARES PREMIUM MONEY MKT ETF
- APPLE INC.
The latest from Qtrade
We know life can get busy, and with recent market movements, keeping up with the latest news can be challenging. If you want to stay informed in a way that fits your life, check out our latest article on managing your investing on the go. Being an informed investor is the best way to ensure you make the right decisions for your goals. We've also taken a deep dive into all the research tools Qtrade offers so you can feel confident the investments in your portfolio work for you.
Looking to boost your savings this summer? Check out the Qtrade Summer Offer! You can receive cash back when you deposit or transfer new funds into a new Qtrade account for a limited time. Get $250 back when you add at least $5,000, or 1% cash back on deposits of $25,000 or more into your new account.* The more you fund, the more you get. That's the Qfactor.
July 2024 has underscored the importance of staying informed and adaptable as market dynamics continue to shift. From interest rate cuts to surprising economic data, investors must remain vigilant to seize opportunities and mitigate risks. Leverage insights from trusted sources and engage with market analyses to refine your investment strategy. Keep your eye on the market and stay prepared for what lies ahead.
Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. Qtrade and Qtrade Direct Investing are trade names or trademarks of Aviso Wealth Inc. and/or its affiliates.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes, and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters.