News Formal

Canadians Ride Stock Market Rally to Offset Real Estate Slump

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 29 sec. here
  • 10 min. at publisher
  • 📊 Quality Score:
  • News: 43%
  • Publisher: 92%

Finance News

Canadians,Stock Market Rally,Real Estate

Canadians are benefiting from the recent stock market rally, which has helped to offset a decline in real estate. Household net worth increased by $290 billion in the fourth quarter, driven by a rise in financial assets and a drop in residential real estate value. However, Canadians remain cautious about taking on debt. While many are benefiting from asset diversification, not everyone is reaping the benefits.

Canadians are riding the recent stock market rally to bolster their wealth, more than offsetting a slump in real estate. In the fourth quarter, households saw their net worth – the value of all assets minus all liabilities – rise by $290-billion or 1.8 per cent to roughly $16.4-trillion, Statistics Canada said Wednesday in a report. Financial assets, such as stocks and bonds, jumped by 5 per cent as investors bid up prices in anticipation of lower interest rates. This increase outweighed a 1.

9-per-cent drop in the value of residential real estate, a second consecutive quarterly decline. On the other side of the ledger, Canadians were cautious about taking on debt. Financial liabilities rose by 3.4 per cent in 2023, the weakest accumulation of household debt in a calendar year since 1990. The numbers suggest that many Canadians are benefiting from asset diversification at a fraught time for personal finances, given the threats posed by higher interest rates and more onerous debt payments. Still, Statscan cautioned that not everyone is reaping the benefit

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: S&P 500 poised for new record with Powell back in spotlightInvestors are looking for further clues on the path of interest rates in Jerome Powell's second day of testimony.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: US stocks fall as tech, rate-cut doubts creep inUncertainty over Fed interest rate cuts and the continued strength of tech stocks has brought caution to the market.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Stocks rise after February jobs reportAll eyes are on the crucial monthly jobs report that could shift the needle on the timing of interest rate cuts.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Wall Street pulls back from its record after a shaky dayNEW YORK (AP) — Wall Street pulled back from its record heights following a shaky day of trading, putting at least a temporary halt to its huge rally since Halloween. The S&P 500 slipped 0.7% Friday from its all-time high.
Source: SooToday - 🏆 8. / 85 Read more »

Stock market today: Stocks little changed following record-setting weekStocks are stacking up gains again after Nvidia results sparked a global rally that has the chipmaker eyeing a $2 trillion valuation.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: US stocks mixed as Wall Street watches and waitsStocks have lost momentum as investors regroup after the tumultuous run-up last week and as focus sharpens on the health of the US economy.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »