Tea Nicola

Why do Canadians still flock to high-fee mutual funds despite low-fee index funds or ETF alternatives? In today's podcast we trace the mutual fund journey over the past 100 years, from niche product to investment mainstay, and offer a glimpse into the future with more low-fee options and demand for unbiased financial advice. #InvestmentInsights #MutualFunds #mutualfund #financialadvice #investmentadvice

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Bank of Canada - The Role of Beliefs in Entering and Exiting the Bitcoin Market Source: https://lnkd.in/g45VVxy4 #role #beliefs #enter #exit #bitcoin #market #cryptoassets #digitalassets Credits: Daniela Balutel Christopher H. Jorge Vasquez Marcel Voia Highlights: We develop a model to study the dynamics of Bitcoin entry and exit. Agents make decisions based on their beliefs of Bitcoin’s future viability and alternatives. We classify individuals into owners, past owners, and never owners, with varying learning rates, determining how their beliefs compare with each other across time and also how they evolve over time. Our empirical analysis unveils significant variations in the impact of beliefs on ownership across time and by ownership status. A decrease in beliefs predicts a higher likelihood of exiting the Bitcoin market, aligning with our theoretical predictions. Beliefs about Bitcoin’s survival has become more optimistic for past owners, suggesting there may be re-entry as time goes on. Also, individuals’ combined financial literacy and cryptocurrency knowledge play an important role shaping the Bitcoin market. We also examine the impact of demographic factors and cryptocurrency knowledge on the the respective beliefs of owners, past owners, and never owners. Age, education, Bitcoin knowledge, incidents, and price negatively influence the beliefs of individuals who have never owned Bitcoin. In contrast, income, relationship status, and incidents play a negative role in shaping the beliefs of past owners, while for current owners, incidents have a stronger negative impact. Our work has implications for understanding the introduction of a CBDC and how its adoption and use might evolve over time. New products that gain widespread adoption typically do so by following an s-curve process (Rogers, 2010). Henry et al. (2024) study whether the introduction of a CBDC may help address unmet payment needs in Canada, finding that the majority of consumers—who would be needed to drive the s-curve—have weak incentives to adopt, being well-served by existing payment methods. Real world implementations of CBDC, such as in China, bear out these predictions: the digital yuan has struggled to find a role in the Chinese payments market. Furthermore, attempting to overcome such barriers by offering financial incentives to on-board consumers can also be ineffective, as demonstrated by El Salvador’s efforts to promote use of Bitcoin as a national currency Our work suggests that the role of beliefs may be a missing element from the discussion about CBDC introduction. Incentivizing the use of a CBDC could help facilitate learning but may not sufficiently change underlying core beliefs of consumers. Addressing such beliefs should, therefore, be of first-order concern.

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𝗖𝗮𝗻𝗮𝗱𝗶𝗮𝗻 𝗵𝗼𝘂𝘀𝗲𝗵𝗼𝗹𝗱 𝗱𝗲𝗯𝘁 𝘁𝗼 𝗚𝗗𝗣 was lower than that of the U.S. until 2010, but their trends have diverged significantly since then. Now, Canada has the 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 debt to GDP ratio 𝗮𝗺𝗼𝗻𝗴 𝗚𝟳 𝗻𝗮𝘁𝗶𝗼𝗻𝘀. Since Q4 2015, Canadian household debt has surpassed its GDP, primarily due to the rapid increase in mortgage debt, which has 𝗼𝘂𝘁𝗽𝗮𝗰𝗲𝗱 𝗚𝗗𝗣 𝗴𝗿𝗼𝘄𝘁𝗵. Note: 74% of the household debt consists of mortgages🏠. Relying heavily on debt, particularly the swift rise in mortgage debt, has raised 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗰𝗼𝗻𝗰𝗲𝗿𝗻𝘀 for the Canadian economy ⚠. ------------------------- Provided by WOWA.ca Simply Know Your Options 🔍

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Many Canadians are misled by US Dollar accounts offered in Canada, thinking they’re getting a true USD account with full payment functionality. In reality, these accounts lack crucial features. No access to local payment transfers such as ACH or Fedwire means higher fees and delayed payments since they're processed as cross-border transactions. With Vault, you get a US Dollar account in the US, empowering your business to operate globally as if it were local. It’s time to gain access to the essential features you need.

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the Open Sept 17, 2024 🌟 Exciting times in the markets! Canadian equities hit new all-time highs, with health care leading the charge. 📈 Meanwhile, Microsoft announces a $60B share repurchase program and Intel makes strides in AI. Stay tuned for more updates! #MarketTrends #Investing #Finance”

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