Canadian Insider Trading Allegations & the IPO Mania Continues

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The Canadian Investor 52 min 2 speakers 7 chapters transcribed 3 months ago
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What is the main topic discussed in this episode?

Simon Belanger 0:01
Investing is simple, but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day, you have to remember that it's a business.
Dan Kent 0:12
Just my reminder to people who own cyclicals, don't be surprised when there's a cycle.
Simon Belanger 0:17
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
This has to be one of the biggest quarters I've seen from this company in quite some time.
Simon Belanger 0:32
Welcome back to the Canadian Investor Podcast. I'm Simon Beranger. I'm back with Dan Kent. That Dan who's back from a nasty virus. We don't quite know what it is, but definitely had no voice last week. And now you have a voice a bit off, but you'll be able to power through and record this episode.
Yeah, that was, it was ugly last week. I couldn't have even came on here if I wanted to because I couldn't talk, but went through the whole family. I'm probably 80% now, so good enough to record.
Simon Belanger 1:03
Well, I'm sure people are glad that you're back. And today we've got a packed episode in both news and earnings. We'll start off with the Bank of Canada that announced just earlier this morning that they held rates at 2.25%. And the big takeaways from that and why they decided not to cut or hike rates. Then we'll touch on US CPI, which came in at 4.2%. The first time inflation has been above 4% in more than three years in the U.S., with, of course, gas and energy playing a major role here. After that, we'll get into the TerraVest insider tipping allegations, but the details being reported are pretty serious, and the stock reaction shows investors are taking the government risks pretty seriously. We'll also finish here by talking about Wealthsimple's new IPO access products, OpenAI...
Simon Belanger 1:56
Reportedly filing confidentially for an IPO. Another update on the SpaceX IPO that is supposed to happen later this week. And finally, Lululemon's tough quarter. So jam-packed episode. Should be a fun one. And just so that people know, we are recording this on June 10th at noon. So just in case information changes, because of course it changes so quickly. So let's start off with the Bank of Canada holding the rates at 2.25%. Were you able to watch the press conference or didn't have time this morning?
No, I didn't watch it this morning. No.
Simon Belanger 2:31
That's okay. It's always thrilling, as you can see, to hear Tiff Macklin and Carolyn Rogers take some questions. I always find it pretty entertaining. And they decided to hold rates, like I mentioned, to 2.25%. No cut, even with a weak Canadian economy, because inflation is moving back towards 3%. They're really stuck between a rock and a hard place. And it was clear during the press conference either they cut too soon and they risk fueling inflation hike and then they risk slowing the economy even more. The inflation language was pretty interesting and became more cautious. And in April, they had a clearer timeline. So in the statement that they release, they were saying... Essentially verbatim, inflation would be peaking around 3% and returning to 2% in early 2027.
Simon Belanger 3:21
Now they mention that the inflation will hover around 3% in the near term and ease gradually towards 2%. So that warning change matters. It may not sound like a lot, but the takeaway for me is pretty clear from that warning is... there's more uncertainty. They're seeing the data is changing and they don't want to panic people, businesses, institutions, investors, but they also don't want to outright lie and say that things are not changing. So what they do and what they typically do, they just change to an even more vague language, which is exactly what it is and essentially what it means. And you can interpret that however you want and that's the beauty of with using that kind of language is gradually i mean gradually can go on for a very very long time and i think it's very calculated that they use that language
I mean, look at the situation in the Middle East right now. They thought it would be over with, well, that was back in March. They said it would last a few weeks, and then it's just a few weeks more, a few weeks more, a few weeks more.

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