RE:RE:My Call is for S/P of $57 by September 26thThe markets are spooked because the Central Banks fight against inflation is the number one concern, and they have said that further interest rate hikes are still on the table in inflation isn't brought down to 2%.
Well, once more data surfaces, as long as rates are kept at these levels, inflation will come down without causing too much damage to the economy.
I'm close with builders and developers in Ottawa, and things have slowed down. Not enough information has been disseminated throuh the media yet, but it will. People are backing out of new home purchases and losing their downpayment.
No need for further rate hikes, but as long as it is still on the table, the markets will not pour money into banks, but the banks, at least here in Canada, will do just fine. That is why they've placed so much into provisions.
Canadian banks are safe, and so are their dividends. Short term turbulence, but a great long term hold which will always pay the dividend, and eventually move back up.