While most economies of the world are experiencing clear signs of stress, the Canadian economy has shown a kind of resilience that is comforting. A look at how the Canadian economy has fared in the past one year shows that comparatively, it has been recording good figures.
Looking at the stock market, one can see some signs of hope. By 1:30 p.m. ET on Friday, the last business day of July, the Toronto Stock Exchange’s S&P/TSX Composite Index, Canada’s main stock index, had lost 7.34 per cent since the beginning of the year. The index had also lost 3.07 per cent in the last year.
However, the index gained 3.59 per cent over the past five days. Similarly, it had gained 4.26 per cent in the past month. This shows that despite all the tales of doom of recession, Canadian investors have not panicked and abandoned their interest in stocks.
Also, on Friday, information from Statistics Canada showed that the Canadian economy most likely grew at an annualized rate of 4.6 per cent in the second quarter of 2022 over the first quarter.
The flash estimate was higher than the Bank of Canada’s July 13 projection that the economy would experience a 4.0-per-cent annualized growth in the second quarter, a rise from the 3.1 per cent recorded in the first quarter.
Across the border in the United States, this week the GDP fell for the second quarter, raising fears that the U.S. economy could already be technically in recession.
The U.S. economy contracted in the second quarter at an annual pace of 0.9 per cent. In the first quarter, the U.S. economy shrank by 1.6 per cent annually. Most of the economies of the world are not faring better.
On the area of inflation, Canada’s annual inflation rate rose to 8.1 per cent in June of 2022. Conversely, the UK inflation rate rose to 9.4 per cent in June. In the US, inflation rose 9.1 per cent in June, even more than the 8.8 per cent expected.
The recent financial results released by most Canadian companies by the end of June also showed impressive performance.
These economic indices indicate that the Canadian economy is not doing badly even amid the global financial crunch. The stock market’s performance shows that Canadian investors are thick-skinned. Despite the doomsday prophecies, they have continued to invest in the stock market even at a time the market is down.
In addition to the inherent strength of the Canadian economy, it is that never-say-die attitude of the Canadian investors that has served as a buffer to the stock market.
Fear, panic and pessimism create both micro and macro problems. They do not allow people to reason. People may make rash decisions that have a domino effect, worsening the entire system’s situation.
Investment experts have long advised that running away from the stock market when the market is down is not investment wisdom. It is the path taken by those who do not understand that the stock market benefits investors according to the percentage of returns. Those who buy when the market is bearish buy at an advantage they will benefit from when the market is bullish.
As the master investor, Warren Buffett, puts it: “Be fearful when others are greedy and greedy when others are fearful.”
Let us now look at the top five stories which have attracted our readers’ attention the most. Within the week, our readers have shown more interest in mining and finance.
Getchell Gold Corp. has provided the remaining results for FCG22-17, the first drill hole of the 2022 drill program at the Fondaway Canyon project in Nevada.
Gold mineralized zone encountered at shallow depth and spanning 120 m downhole
High-grade gold mineralization of 17.7 g/t Au over 9.9 m within a broader zone grading
Mike Sieb, President of Getchell Gold, sat down with Sabrina Cuthbert to discuss the results.
Getchell Gold Corp was down 8.96 per cent in the past five days, trading at C$0.61 at 11:18 a.m. EDT.
Silver Bullet Mines (TSXV:SBMI) reports “spectacular” assay results from its Buckeye Mine
Silver Bullet Mines Corp. has announced spectacular assay results from its Buckeye Mine in Arizona.
A grab sample taken from behind the Treasure Chest at its Buckeye Mine resulted in two beads. One bead graded 2,214.4 oz/t silver and the other 2,363.8 oz/t silver.
VP Capital Markets and Director Peter Clausi sat down with Daniella Atkinson to discuss the news.
Silver Bullet Mines was unchanged in the past five days, trading at C$0.26 at 12:06 p.m. EDT.
Fineqia (CSE:FNQ) welcomes Cheryl Kong as new CFO
Fineqia International has appointed Cheryl Kong as its new Chief Financial Officer.
Kong will lead the financial strategy of the company and will help amplify Fineqia’s mission with her extensive skills.
Prior to joining Fineqia, Kong was the Chief Financial Officer at GHCO, a market-making trading firm specializing in Exchange Traded Funds (ETFs), Exchange Traded Products (ETPs), and Exchange Traded Commodity (ETCs).
CFO designate Cheryl Kong sat down with Daniella Atkinson to discuss the opportunity.
Fineqia International Inc unchanged in the past five days, trading at C$0.0050 as at 9:30 a.m. EDT.
Tudor Gold (TSXV:TUD) intersects gold in British Columbia
Tudor Gold (TUD) is releasing the third set of results from its ongoing Phase 1 at exploration program at the Treaty Creek Project.
This represents the second consecutive high-grade visible gold discovery on the project’s northeastern stepout.
An intercept of 70.96 grams per tonne of gold equivalent over one metre is now highest single gold grade intercept of the project.
Tudor Gold Corp dipped 2.94 per cent within the week, trading at C$1.65 at 11:51 a.m. EDT.
Simply Better Brands (TSXV:SBBC) improves financing and reduces dilution
Simply Better Brands (SBBC) has restructured its convertible debenture offering that does not require a general security agreement.
It also reduces the total potential share dilution from the previous offering.
The convertible debentures will be convertible at the holder’s election into common shares at $0.39.
Simply Better Brands Corp was up 19.40 per cent in the past five days, trading at C$0.40 at 12:58 p.m. EDT.