Telus Corp T.T

90,000 jobs created in December won't stop a rate cut.

[Bigbear7405]

This is the reason for the market drop today.  The market wants rate cuts and this report might take that off the table.  I feel there is still a good chance for a rate cut this month as the unemployment rate is 6.7% which is quite high compared to the states which is 4.1.  It also takes 18 months for a cut to work through the system.   Rate cuts prop up stocks and helps Telus renegotiate debts levels at lesser rates.  I have seen GICS paying less already which tends to move people into stocks if they keep dropping. 

I feel a rate cut will happen.

[Dibah420]

You are right, rate cuts should be on order but mainly because the much talked about inflation rate has been hovering around 2% for some time.  Our unemployment rates  are high, period, despite the job creating numbers.  The unemployed number for the US is always several points lower than ours because they claim generous benefits only encourage the lazy no-gooders to exploit the

[Bigbear7405]

I also think its more likely they will cut because the last inflation reading was 1.9% which is below the target inflation rate and they also don't meet in February.  

[maplak]

BOC said that latest inflation reading came at 1.9%  LOL  . Only thing we are missing from BOC is fairytale  story  Little Red Riding Hood. Don't believe for one minute that inflation is running below 2 %. Starting this year taxes went up again ; CPP contribution,carbon tax , weak $ resulting spike in gasoline prices etc. Not mentioning US upcoming tariffs which will bump

[Bigbear7405]

1.2 million mortgages come due this year with most of them being at rock bottom interest rates at around 2 percent back in 2021.   Now they will be over 2 percent higher in the 4.5% percent range.   This is HEAVILY deflationary for the Canadian economy as families will have a lot less to spend.  Cuts will continue.   

[okgonow]

i  dont get it since when i it up to the government and the bank of Canada to save people who have not planed ahead properly??? all those who bought homes, cottages, investment property at higher prices but at low interest with the mantra:   its all good we can service our debt the rates are soooo low?? was the only plan that interest rates would never go up and house prices keep

[Bigbear7405]

Alot just bought homes in to live in.  if COVID didn't happen I could easily provide a strong debate interest rates would stay low for a long time.  At this point they are already down 25 percent.  The fact is people can renegotiate lower rates in the 4 percent range as opposed to In the 5 percent range which was killing alot.  They should be able to maintain their homes

[maplak]

Absolutely. I came to Canada  in late fall 1989 right into big real estate recession. Living in St. Catharines with unemployment  around 22% .People losing jobs and houses. After 6 months of ESL got kicked out of Government program for having a K car  in order to keep my 2 cleaning jobs trying to add the cost of the car plus insurance on the top of my government loan. Did not sign

[SargeX]

Very well said. As someone born in the early 50s, we were brought up to be responsible and accountable. We were taught to minimize/avoid debt (other than for a house) and to not spend beyond our means. I doubt young peope nowa days even knwo what a rainy day fund is.   Amazing how times have changed and proper financial values have been thrown out the window. Very sad to see.

[Red_Deer]

TOTALLY AGREE !!!! Gave BOTH of You a Thumbs UP  

[Red_Deer]

""As someone born in the early 50s, we were brought up to be responsible and accountable. We were taught to minimize/avoid debt (other than for a house) and to not spend beyond our means. I doubt young peope nowa days even knwo what a rainy day fund is.     Amazing how times have changed and proper financial values have been thrown out the window."" Hey

[okgonow]

  yes I taught them the value of a $ and NOT to take on unnecessary debt. they work hard for their money. And participation trophies don't count in life. what I will say is that that is the problem is the indoctrination of the kids born in the 80 and early 90's received at school. As mentioned above the overriding sentiment was that as long as you tried and participated you are

[rixpix]

A few things I disagree with here. You're using the lowest mtg rate which was 4 years ago to strengthen your point of families having less to spend. The most popular fixed mtg term is 5 years, followed by 3 years, so the  chances of 1.2 million renewing this year having had the lowest rate possible doesn't add up because the lowest rate was 4 years ago. Only a very small percentage

[Bigbear7405]

Fair enough. I can agree that 5 year mortgage are the most prevalent.  But we still have 1.2 million morgages renegotiating in 2025.   Blow is a quote of where interest rates where in 2020.  So my take is that households who are renewing could easily pay another 2k a month with rates that are up to 3 percent or so more. This is strongly deflationary. That is a lot of money

[okgonow]

the other thing i did not mention in my post was that at the height of the market people were buying houses and cottages for rediculous money. The market was basicaly outpricing itself, but with the help of real-estate agents and who knows who people were outbidding eachother. everyone was real estate drunk prices increasing 20% and more year over year some areas of Canada saw prices more than