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As Bank of Canada turns hawkish, investors retool for higher rates outlook

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Bank of Canada expecting strong growth

TORONTO (Reuters) – Investors in Canada are shunning interest-rate sensitive stocks, seeking inflation protection and betting on a steeper yield curve as the Bank of Canada leads global central banks in shifting to a more hawkish stance.

Canada‘s central bank on Wednesday signaled it could hike interest rates as soon as next year and cut the pace of bond purchases, becoming one of the first major central banks to reduce stimulus.

Investors say they have been adjusting portfolios for some time to prepare for a higher rates outlook, but the BoC’s move has reinforced the focus on such an outcome.

“The fact that the Bank of Canada is now starting to take the foot off the gas… it is the first sign of what’s going to happen and be the big story for the second half of the year,” said Greg Taylor, a portfolio manager at Purpose Investments.

Taylor expects other central banks to follow the Bank of Canada‘s lead, making it more difficult for stock markets to rise later in 2021. Higher rates reduce the value of the future cash flows equities produce.

AGF Investments portfolio manager Mike Archibald is overweight technology shares and cyclicals, such as industrials and consumer discretionary, while underweight defensive sectors, including telecommunications, consumer staples and utilities.

“I am underweight (defensives) both on the expectation of better growth in the next 6-12 months as well as higher yields over time,” Archibald said.

Rising bond yields crimp the appeal of the high dividends defensive stocks tend to pay.

The Bank of Canada expects Canada‘s economy to grow 6.5% in 2021 and inflation to move over the coming months to the top of its 1% to 3% target range.

With inflation expectations rising, buying commodities could benefit a portfolio, said Michael White, a portfolio manager at Picton Mahoney Asset Management.

“Things like industrial metals and energy… you get the benefit of positive performance when economies are generally growing but they are also sensitive to inflation,” he said.

A more hawkish Bank of Canada has bolstered the Canadian dollar CAD=, and James Athey, investment director at Aberdeen Standard Investments in London is among investors who bought the currency on Wednesday, when it touched a one-month high at 1.2455 per U.S. dollar, or 80.29 U.S. cents.

He has also been betting that Canada‘s long-term yields will rise more than short-term yields, or that the curve will steepen.

That trade remains appropriate “as reducing asset purchases will happen a lot sooner and more easily than moving to tightening via higher rates,” Athey said.

The proposal in Monday’s federal budget to raise the share of long-term bond issuance to 42% from 15% before the crisis could also lead to a steeper curve, said Earl Davis, head of fixed income and money markets at BMO Global Asset Management.

While a punishing third wave of the coronavirus pandemic creates a headwind for Canada‘s economy, it may not change the big picture on the rate outlook.

“We believe this third wave and the renewed lockdowns are disruptive events to the economy but not destructive,” said Philip Petursson, chief investment strategist at Manulife Investment Management.

 

(Reporting by Fergal Smith; Editing by Dan Grebler)

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Centurian jail for sale in Owen Sound offers spooky real estate investment – CTV News Barrie

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BARRIE, ONT. –

A historic jail is for sale in Owen Sound.

The city has been trying to sell the 165-year-old jail since 2011.

This summer, it was listed again for $229,000, but a local realtor says while there’s a lot of potential hidden within the Centurian walls, it could be costly.

“The amount of money that could be spent in this building could be upwards of five to ten million dollars,” says Dave Park, realtor at Chestnut Park.

Money that would need to be spent to be approved by stakeholders and city staff. The city says they will be accepting offers until October 4 and making a formal decision about the building’s future on October 22.

For those wondering about paranormal activity, Park says there hasn’t been any ghost sightings.

“But certainly, just walking through the facility it allows you to think there could be ghosts here,” Park says.

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Investment App MAKMUR Raises Seven-Digit Seed Funding to Advance Features and People Development – Yahoo Finance

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JAKARTA, Indonesia, Sept. 27, 2021 /PRNewswire/ — Indonesia-based investment app, MAKMUR, has secured a seven-digit seed funding round, led by BEENEXT, with participation from Kinesys Group, Trihill Capital, and notable angel investors including Yiping Goh (Quest Ventures’ partner), Edward Tirtanata (Kopi Kenangan’s CEO), Vidit Agrawal (GajiGesa’s CEO), and Andrew Lee (former unicorn executive). MAKMUR will use the capital to expand its features and product portfolio, as well as to hire new talented individuals and people development.

MAKMUR App

MAKMUR App

MAKMUR is a technology-based investment app that allows users to set their financial goals and reach them through long term investing. Similar to Betterment in the U.S., it has goal-based investing feature so users can easily invest towards multiple goals, such as emergency fund, retirement fund, and children’s education fund with the ease of using just one app.

The app also provides a Robo Advisory feature that adapts to users’ risk tolerance, as well as investment horizon, and prevailing economic conditions. This proprietary dynamic asset allocation technology helps users invest optimally regardless of whether the market is bullish or bearish.

Financial advisory are often available only for high-net worth investors. However, MAKMUR digitizes and democratizes such services to be completely accessible and affordable for all Indonesian citizens.

Sander Parawira, founder and CEO of MAKMUR, pointed out, “Many people think that investing in mutual funds is difficult, in which they have to go through a complicated account opening process and prepare a large amount of capital. Supported by OCR (Optical Character Recognition) and face recognition technology, we offer an exceptional account opening experience that is simple and swift. It only takes five minutes to complete the account opening process, with an initial capital starting from IDR 10,000 (USD 0.70) and no transaction fee.”

Faiz Rahman, BEENEXT’s partner, added “We are witnessing a new revolution in Indonesia where mass market come to realize the importance of investing. MAKMUR enables retail investors to do prudent long-term investing to build wealth sustainably. We are very excited about MAKMUR and we look forward to having a long-term partnership with MAKMUR as we believe in their mission to make investing easier, cheaper, and more sustainable for Indonesians.”

MAKMUR App to help build a robust inclusive financial ecosystem in Indonesia

MAKMUR app is the brainchild of Sander Parawira, a Stanford University’s graduate, formerly the Head of Quantitative Strategies of Wall Street’ leading quantitative trading firm, Virtu Financial. Prior to Virtu, Sander was a Software Engineer at Facebook.

Sander built the app with the aim to improve financial literacy and inclusions among Indonesian citizens. “Indonesia’s capital market investor has experienced a significant growth, however, the number of investors today in Indonesia is still fewer than 2% of the population. Following the seed funding round, we are hoping to bridge the financial inclusion gap while improving financial literacy across the country.”

Ever since the company obtained official license from Otoritas Jasa Keuangan (OJK) in February 2021, it has partnered with ten leading investment managers. They include Avrist Asset Management, Bahana TCW Investment Management, BNI Asset Management, Capital Asset Management, Eastspring Investment, FWD Asset Management, Principal Asset Management, RHB Asset Management, Syailendra Capital, and Trimegah Asset Management.

MAKMUR app is available on both Play Store and App Store for Android users and iOS users respectively. For further information, please visit https://www.makmur.id

About MAKMUR

MAKMUR is a start-up that provides technology-based investment app to help Indonesians plan their financial goals and invest for the long term easily, safely, and sustainably. All investment plans are designed by experienced investment professionals based on quantitative research and big data. MAKMUR is established by a former Head of Quantitative Strategies at Virtu Financial, a leading quantitative trading firm in Wall Street and an ex Facebook Software Engineer. The team has a cumulative 30 years experience in the investment and technology space in reputable companies such as IndoPremier, Traveloka, and IBM and are graduates from the best universities in the world such as Stanford University, UC Berkeley, Columbia University, and Purdue University.

About BEENEXT

BEENEXT is a Venture Capital fund managed by serial entrepreneurs that focuses on assisting founders with its operational experience, network, trust, unique perspectives, and the capital. The team invests in early-stage tech start-ups that are focused on building the new digital platforms driven by the data network. BEENEXT aims to establish a platform of founders, by the founders and for the founders across the globe, primarily in South East Asia, India and Japan. Since its establishment in 2015, the team has invested in over 200 companies globally.

SOURCE PT Inovasi Finansial Teknologi (MAKMUR)

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Big Pot wants millions in corporate investment — some lawmakers are happy to help – New York Post

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Last year, we saw pro-pot lawmakers attempt to load up any and every COVID-19 aid bill with marijuana industry wish list items. Though none of those attempts proved successful, they are back at it again.

Last week, Rep. Ed Perlmutter (D-Colo.) offered the SAFE Banking Act as an amendment to the annual military spending bill known as the National Defense Authorization Act, or NDAA. The NDAA is a must-enact defense spending bill that Congress has passed into law each year for 60 years in a row. Which renders Perlmutter’s move especially shady.

Outside of full, federal legalization, passing the SAFE Banking Act into law is the top priority of the marijuana industry. The bill would allow the industry access to the federal financial system, opening it up to take out loans, have FDIC-insured bank accounts and accept all major credit cards without having to resort to loopholes. But the real reason why this bill is so critically important to Big Pot is that it would finally allow pot companies access to institutional investment.

You see, there are currently billions of dollars sitting on the sidelines, waiting to be invested into the pot industry by major investment firms, hedge funds, pension systems and other major corporate interests. These interests, according to former House Speaker and pot advocate John Boehner, want to “dive head-first into cannabis.”

As it stands, the giants of Big Tobacco and Big Alcohol are deeply invested in the marijuana industry across our northern border in Canada. Altria, the maker of Marlboro cigarettes, invested $2 billion into Cronos, a Canadian weed company, while Constellation Brands, one of the largest alcohol conglomerates, pumped $245 million into another Canadian marijuana company, Canopy Growth.

But while these two giants of the addiction industry are unable to fully invest in American marijuana companies, their well-heeled lobbyists are working the halls of Congress, pushing for the SAFE Banking Act.

Rep. Ed Perlmutter offered the SAFE Banking Act as an amendment to the annual military spending bill.
AP Photo/David Zalubowski, File

The most direct, immediate result of this bill would be billions of dollars in investment flowing into pot companies that can then be spent on research and development of new, highly potent products and new marketing campaigns that will further normalize marijuana use and result in more youths using the drug.

As an aside, don’t be fooled into thinking the pot industry is marketing the 5-percent-THC pot smoked in the 1960s and ’70s. Today’s marijuana regularly contains upwards of 30 percent THC — the main, psychoactive compound — in flower and 99 percent THC in concentrates such as dabs and vaping oils. This new, high-potency pot has been linked to a litany of serious mental-health issues, such as anxiety, depression, schizophrenia and psychosis.

The pot lobby has promulgated lie after lie to convince lawmakers to support this bill. They say they are forced to operate as a “cash-only” industry due to the lack of conventional banking access. This has repeatedly been shown to be false, as many marijuana dispensaries readily accept card payment. Furthermore, the pot lobby claims that its (false) status as “cash-only” makes dispensaries a prime target for robberies. While it’s true marijuana dispensaries are oftentimes robbed, many such robberies are not after cash that is locked away in a backroom safe, but the marijuana products on the shelves.

Chemdawg marijuana plants grow at a facility in Smiths Falls, Ontario, Canada October 29, 2019.
The giants of Big Tobacco and Big Alcohol are deeply invested in the marijuana industry in Canada.
REUTERS/Blair Gable/File Photo

In short, the SAFE Banking Act is nothing more than the federal government signing off on corporate investment in the marijuana industry. And what’s worse, it could set the precedent for banking access to other industries that traffic in federally illegal substances. Former officials from the Carter, Reagan, Bush, Clinton and Obama administrations have even warned this bill could grant cover for criminal cartels to engage in money laundering.

To the point at hand, marijuana-industry banking access has absolutely nothing to do with the funding of our military and other national-security operations; the inclusion of this amendment is just another example of the desperation of the marijuana industry. The American people should reject these shady tactics and put kids before the pot industry.

Kevin Sabet, a former three-time White House senior drug-policy adviser, is president of Smart Approaches to Marijuana and author of “Smokescreen: What the Marijuana Industry Doesn’t Want You to Know.”

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