The City of Moose Jaw’s stock investments lost over $500,000 during the third quarter of this year, while both portfolios have lost more than $14 million year-to-date.
During city council’s Nov. 14 regular meeting, council received the investment committee’s report with results from Q3 of 2022. Council then voted unanimously to receive and file the document.
The report showed from July 1 to Sept. 30, the moderate-term portfolio decreased by 0.24 per cent and lost $56,737.57. This dropped the portfolio to $23,712,577.23 from $23,769,314.80.
Year-to-date, the portfolio has declined 7.80 per cent.
Long-term portfolio
From July 1 to Sept. 30, the long-term portfolio decreased by 0.71 per cent and lost $476,818.34, the report showed. This dropped the portfolio to $66,994,498.29 from $67,471,316.63.
Year-to-date, the portfolio has declined by 13.79 per cent.
Combined, both portfolios lost $533,555.91 during the third quarter, equal to about 17 percentage points in municipal taxation.
One percentage point this year equalled $310,755.26 in municipal taxation.
Coun. Dawn Luhning, a member of the investment committee, explained that 4.25 per cent is the annual return percentage objective for the moderate-term portfolio. However, that number stands at 3.06 per cent.
Furthermore, six per cent is the annual return percentage objective for the long-term portfolio. Yet, since its inception, the return has been 3.31 per cent.
Meanwhile, the city has an extra $2,716,000 of long-term portfolio money invested in its bank account, providing a return of 4.35 per cent. That money will return to the actual portfolio once money manager RBC Dominion Securities selects a longer-term investment option for those funds.
“The first three quarters of 2022 is seeing the financial markets experience volatility, and this is something the city expects and has anticipated in its investment policy,” said Luhning.
These investments are different from the money that individuals contribute because there is usually an endpoint for the latter investments, whereas a corporation — such as Moose Jaw — has an unending lifespan, she continued.
Even though the losses are difficult to take — and have been for everyone — the markets “always go up,” and there are opportunities for the municipality to invest in bonds and GICs that will be beneficial in the short term.
The committee takes a long-term view on investments, which allows the city to weather short-term market downturns, Luhning said. The committee has also structured the investments so there are liquid assets — such as GICs — that will mature during the next few years. This ensures the committee doesn’t have to sell equities and bonds during this downturn.
“The city’s investment manager will be re-balancing the moderate- and long-term portfolios when there is strength in the market to a neutral asset mix, adding … bonds and quality dividend funds,” she added.
The next regular council meeting is Monday, Nov. 28.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
