The end of easy money? 3 stocks for Canadians to watch as credit tightens

a close up of a light© Provided by Fool

Statistics Canada released data on March 15 that revealed debt to income fell in the fourth quarter of 2017. For some analysts, this is an encouraging sign that Canadian households and consumers at large have started to adjust to the new reality of higher interest rates. The total-household-debt service ratio was static at 13.8% and household-credit market debt rose 1.1% to $2.13 trillion.

Popular Searches





The Bank of Canada elected to hold the benchmark interest rate at 1.25% at its most recent meeting, citing trade and housing concerns. However, for the long term, the central bank intends to bring Canada closer to its “neutral” rate, which is now between 2.5% and 3.5%. Some analysts have predicted as little as one more rate hike in 2018, and at the rate the central bank is moving, it could be a while before we see the benchmark move to this target.

In any case, barring a sluggish economic turn, the central bank will proceed with tightening in the coming months and years. Today, we will look at three stocks that could be affected by this policy.

Goeasy Ltd. (TSX:GSY)

Goeasy is a Mississauga-based company that provides alternative financial services, such as the merchandise leasing of household furnishings and other products. The company is specifically geared

Article source:

These provinces will be most (and least) hurt if NAFTA is terminated: report

FILE - Justin Trudeau shakes hands with U.S. President Donald Trump on Nov. 13, 2017.© Adrian Wyld/CP
FILE – Justin Trudeau shakes hands with U.S. President Donald Trump on Nov. 13, 2017.

With growing fears that the North American Free Trade Agreement (NAFTA) may be terminated, Moody’s Investors Service took a look at where Canada would hurt the most if the deal is killed.

A report released Thursday highlights that provincial economies are bound to suffer more than the national one.

READ MORE: What happens if NAFTA is killed? RBC looks at Canada’s possible future

Popular Searches





And in Canada, Ontario and New Brunswick would feel negative effects the most.

WATCH: Trudeau discusses time concerns on NAFTA negotiations

Moody’s analyst Michael Yake explained to Global News that the projected impact was measured by the size of export to the U.S. relative to the province’s gross domestic product (GDP). The second factor considered is which industries the province has — certain sectors, such as manufacturing, are more vulnerable.

“It’s not as if after NAFTA is removed that suddenly every export will go up. Each industry, each sector has different tariffs,” Yake said.

Here’s a closer look how provinces will be affected:

Most likely to be hurt if NAFTA is terminated:

New Brunswick

Moody’s reports that exports to the U.S. accounted for 28.5 per cent of New Brunswick’s

Article source:

How many chickens is too many? Victoria property will have 100 as of Saturday

a person standing in front of a fence: Neighbour Chantal Meagher says the chicken coops and the compost bins are located very near the border of her property.

© Liz McArthur
Neighbour Chantal Meagher says the chicken coops and the compost bins are located very near the border of her property.

Residents of an upscale Victoria neighbourhood are bracing for the arrival of approximately 100 chickens on Saturday. 

Wei Tu is the landlord of a 35-room heritage home in Rockland and says she is bringing in the chickens to help feed her tenants. 

She says the building has 45 tenants, with many people sharing a room. 

“About one quarter are on social assistance, and living cheque by cheque is a way of living,” Tu said. 

“It’s my core value to share the responsibility as a whole society, to help those who are in need. 

“So late in January I discussed with my tenants about the possibility to improve our gardens and also set up chicken coops.”

Tu admits it’s a lot of chickens, but says that 100 birds is not an inappropriate number for the 2.2 acres of land. 

Although Tu is not violating any bylaw, the City of Victoria did pass a motion this week to limit the number of hens to 12. However, the motion still needs to be adopted to take effect. 

Tu says no one from the city has contacted her, but maintains that the issue is a legal one. 


Article source: