The Big Story A snip to rates and a surge on the markets: an economic check-up!
Oct 31, 2025
Join Barry Schwartz, President and Chief Investment Officer at Baskin Wealth, as he dives into the latest shifts in the Canadian economy. He discusses the Bank of Canada’s recent rate cuts and the implications of fluctuating inflation rates. Barry sheds light on the anticipated federal budget and its potential impacts. He also tackles the AI market rally, questioning whether it's sustainable or just a bubble, while emphasizing the strength of big tech profits amidst trade tensions. Insightful and thought-provoking!
AI Snips
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Transcript
Episode notes
Rate Cuts Signal Economic Weakness
- The Bank of Canada is cutting rates because inflation is tame but the economy is weakening due to tariffs and structural issues.
- Low- and middle-income consumers face debt stress and job worries, limiting near-term growth.
Use Fiscal Stimulus To Complement Rate Cuts
- Use fiscal policy alongside monetary easing to stimulate the economy, with targeted infrastructure spending creating jobs.
- Prioritize projects like LNG, data centres, and pipelines to attract investment and restore growth.
Earnings, Not Politics, Drive Markets
- Markets are rallying despite political noise because corporate earnings, especially among big tech, are exceptionally strong.
- Interest rate relief and tame inflation are additional tailwinds supporting the rally.