Update1) Fed holds the interest again as expected the FED finally guided towards lower rates next year
2) rates down = stox up, particularly for interest rate sensitive yield plays like ENB/ENS
3) Premium to Live NAV is now under 10%
4) I lowered the "multiplier" in my NAV calculation from 0.44 down to 0.37
5) I expect the multiplier will rise back up once Middlefield deploys the $38 million from the Raise
Gauging the market has been tricky since the world shut down with Covid in March 2020. I think JPOW's talk and Q&A today represents a pivot point.
Will we see a recession in Canada in the first half of 2024?
I doubt if but if we do see a recession, I expect it to be mild. I may be more optimistic that some others. Time will be the judge.
I expect Canada will cut rates earlier and faster than the US as our penchant for variable rate mortgages and short terms HAS to be putting a ton of pressure on the Bank of Canada. The housing market plays a huge role in the financial well being in Canada and is a key factor in the velocity of money (a topic for another day).
My target price for ENS remains at $15+ so I'm still picking away. I now have 75% of my target number of shares for ENS. If we get a dip, I intend to be more aggressive.