Thursday morning news drop
Bank of Canada increases policy interest rate by 50 basis points, begins quantitative tightening The Bank of Canada today increased its target for the overnight rate to 1%, with the Bank Rate at 1¼% and the deposit rate at 1%. The Bank is also ending reinvestment and will begin quantitative tightening (QT), effective April 25. Maturing Government of Canada bonds on the Bank’s balance sheet will no longer be replaced and, as a result, the size of the balance sheet will decline over time. (Bank of Canada)
U.S. inflation rate keeps heading higher, now up to 8.5% March figure even higher than anticipated due to energy price spike during the month (CBC)
Amid push for more housing, construction costs remain 'stratospheric' Residential construction costs in Ottawa jumped 24 per cent from late 2020 to late 2021 (CBC)
Don’t Fall for This Real Estate Myth REITs have gotten a bad rap in rising-rate environments, but historical data tells a different story (Institutional Investor)
Is The Fed Making a Mistake? This group more or less complains about higher prices but then keeps right on paying them because they can. The problem is it’s probably going to be the bottom 50% that don’t own financial assets that gets hurt the most if we do go into a recession. But the idea is if you can put a dent in the wealth effect and make borrowing more expensive it should slow demand. (A Wealth of Common Sense)
Stock Splits Actually Work—Just Not for the Reason Everyone Thinks There have been about 20 splits a year by U.S. issuers over the past decade, says Dow Jones Market Data. “By itself, a stock split should neither create nor destroy any value.” The real heyday of the split was during the late 1990s tech bubble. From 1997 to 2000, an average of 65 U.S. companies divided their shares each year as markets melted up. Split frequency picked up again in the years before the global financial crisis, at the tail end of another long market rally. (Barron’s)
‘We’re a Cult’: Inside Bitcoin’s Shameless Hypefest. Evangelists—and a couple of guys selling bitcoin panties—flocked to a Miami Beach convention center last week. (Daily Beast)
Guns, Gains And God: Four Days In Miami With Crypto’s Most Faithful Fans. The forum is also an occasion for the crypto rich to flaunt the sudden, enormous wealth cryptocurrencies have generated. (Bitcoin’s value alone has soared approximately 1,100% since the conference’s 2019 start.) They get the chance to do so in a city offering bountiful opportunities to strut and spend, a place that has deliberately pitched itself as a Mecca for crypto enthusiasts and techno nonconformists. (Forbes)
You’re Still Being Tracked on the Internet, Just in a Different Way Apple and Google are pushing privacy changes, but a shift in digital tracking is giving some platforms a bigger advertising advantage. (New York Times)
The Guy Who Collected Every Gap Store Playlist Ever Made ‘I’m still obsessed with ‘Cotton Wool (Fila Brazilia Mix)’ by Lamb from the August 1998 playlist. It really captures the feel of the Gap store that year’ (Mel Magazine) and here is his Spotify links to all the Gap Music (Spotify)