TSX:AX.PR.E - Post by User
Post by
Torontojayon Dec 17, 2024 2:30pm
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Post# 36366707
Canadian dollar plunging below 70 cents
Canadian dollar plunging below 70 cents Not looking good for Canada.
This is classic stagflation. A lower dollar will make our productivity efforts all the more challenging in the new year. Less population growth and higher food prices on imports coming from the US will be the story line for next year. GDP will remain below trend and unemployment is rising as the Sahm rule predicted. Remember the yield curve that Google boy said is no longer relevant? Well, it has precisely predicted Canada's recession and the 10 year/3 month spread is still inverted!!! The media is gaslighting you if you think otherwise.
Unemployment is already 1.9% higher than its trough and a recession will typically increase the Ui rate to about 2.5%. In other words, we are already there but with no end in sight.
The Canadian dollar will continue to weaken and the stock market performance relative to the $ US will be abysmal.
That's my prediction.