Acceleware Ltd V.AXE

Central Bank Going To Cut The Rates???

[ScarletSpider]

Yesterday, my family and I were working on trying to find the best GIC rates and have been shopping around. To our surprise the 1 year GIC rates have come down from 4.9 percent to 4.75 percent. Some financial institutions stated 4.6 but with bonus rate 4.75. 

The banks in all the time we had been looking have not done this their rates were quite fixed. They also would let people take their money out and i am not talking on the cashable 30 days 100 days terms with just simply losing the interest now it is rigid once you lock the rate in you cant take it out. 

We were told by one financial institution that the rates changed as of early yesterday morning we called early afternoon and regardless of amount of money those old rates were gone!!!

I have been going on about the rate cuts not coming earlier than September but i find what the banks have done as quite interesting and see it as a possible priming/precursor to both the Bank of Canada and the US Central Bank finally doing what should have been done ages ago. Nevertheless, that being said i am not saying when the rate cuts will come for sure but this move for as long as we have been looking at rates has not been done throughout these high inflationary days. Folks the time many of us have been waiting for may be on the horizon finally. Lets see if we see rates cut between June to August the sooner the better as the markets have been a shiate show it is time to get the economy going and product and services through the supply channel. The rate cuts when they come i read will not largely be felt at the everyday level but more primarily the business however it needs to start to be able to finally be felt and give the broader community respite over stupidly ridiculously high food prices and hopefully housing two of the crippling places people are badly struggling. Like i said super idiotic to have raised and kept doing so when the supply chain was not in full gear. Anyways lets see when the rate cuts start to roll through and if they will drop by whole 1 percent or more measured as they were raised quarter points i am hoping the first cut will shave 1 percent off and then if the banks are still trying to assess the effects perhaps quarter to half or another percent. Maybe the will do 1 percent Summer more earlier assess to see the quarter and then target another Fall/Winter which typically money exits the market so i think to keep money and pump up production it will be stronger to definitely cut asap and again Fall Winter. I cant see a 2 percent cut though to get to 3 from 5 that would seem too fast but who knows? 

In any case i thought this may be of interest for people. Yesterday there seemes to be heavier volume in all the stocks i hold it may not be a good time to dump shares if the cuts are coming soon as i now suspect like i said not once through the whole inflation period have Canadian banks financial institutions drop the rates by a percent or more to what we seen or be sticky in saying if you get a year or longer GIC you cant take it out so that seems quite odd to me. That did however consistently say we cant guarantee the rates and we have been slow like over 2 plus months getting things done thats another story altogether. I would be careful in shedding shares there may be a rates cut announcement coming.  Lets see if indeed what the banks are doing in fact are coinciding and signaling it.

This will have to get some great news to drive the share value back up. I am holding to the fact that once the rates start dropping we will see money come in like Areshawk is thinking potentially in new partners or existing ones putting it in. High interest rates have killed a lot of the market but the end is coming we made it nearly to the half way point best case scenario June cuts worst case still another 4 or so months September on but the banks need to move things are lagging and all the false robustness of people spending miney to avoid depression on non essentials is drying up as now they are cutting and struggling to pay for groceries. Lot of people like myself were buying comics and collectibles like the stocks last year prices were ridiculously high. I will put it this way i have a Dr. Strange first appearance Strange Tales 110 in a grade of 4.0 the ask price was between 7000 to 8000 for it people most likely would get between $6500 and $7200 someone had an ask of $5000 for a 4.5 but that wasnt moving so everything got nailed extremely badly. The shopping data and jobs data were inflated false indicators to have gone by. The shopping had everything to do with lockdown and people wanting to spend to avoid going crazy and is typically the case jobs created i am sure were all mostly part time jobs and employment numbers being skewd on part time hours versus where it really counts on full time jobs. While helpful for people to get at least some earnings it inflated really the true purchasing power and in my opinion be assessed only on full time employment during downturns. The numbers further get skewd by things like participation rate people actively looking who can also possibly show up. Governments can really manipulate numbers but the BOC and US Central Banks make their decisions independent of them. Regardless we sure can use some rate cuts asap. Why prolong this overall shiate show. I wont be surprised to see an overall uprise in the market maybe sustained up to August fingers crossed and doubly that it does ride the anticipation wave that finally pays off not like before at least there could be stability and proper upward growth and share prices to do raises on. These rate cuts mean that much time for these geniuses to finally do something right for a change.