TD's Kelvin: Canada Hiking Bias Not Justified

The video discusses Canada's economic outlook, focusing on interest rates, investment opportunities, and the impact of US policies. It highlights challenges like reliance on household spending and explores market reactions to economic forecasts. The discussion also covers the effects of currency changes on Canadian exports.

What is the current stance of the Canadian central bank regarding interest rates compared to the Federal Reserve?

• Canada has matched the Fed's rates.

• Canada is trailing the Fed for the first time since 2007.

• Canada is leading with higher rates.

• Canada has no interest rate policy.

What is a significant challenge facing the Canadian economy as discussed in the video?

• Over-reliance on technology exports

• High levels of government debt

• Dependence on household spending and residential investment

• Lack of natural resources

How does the video describe the potential investment opportunity in Canadian bonds?

• Bonds are expected to sell off at the same pace as US Treasuries.

• There is no significant investment opportunity in Canadian bonds.

• Bonds are not expected to sell off as much as US Treasuries due to different growth and inflation pressures.

• Bonds are expected to move lower and lower.

What is a potential effect of US fiscal policies under President-elect Trump as discussed in the video?

• Inflation requiring a robust interest rate response

• No impact on the economy

• Immediate economic growth

• Deflationary pressures

What challenge does Canada face in implementing fiscal stimulus, according to the video?

• High inflation rates

• Excessive government spending

• Lack of political will

• Difficulty in finding shovel-ready projects

How might changes in interest rates affect equities, as discussed in the video?

• Interest rate changes have no effect on equities.

• Equities will remain stable regardless of interest rate changes.

• Equities will rise sharply.

• Equities may sell off if interest rates rise significantly.

What is the potential impact of a weaker Canadian dollar on exports, according to the video?

• Decrease in exports

• Significant increase in exports

• No significant change in exports

• Exports will become the main economic driver