Energy and oil prices | Falling loonie | Psychology of investing
Oil experienced some volatility this week with the TSX enjoying a couple of big advances at the beginning of the week due to a surge in oil prices. However, it gave back some of its gains mid-week and was down again by Thursday morning.
We've no doubt seen how oil prices have affected our loonie and economy in the past couple of years. The Visual Capitalist has some great informative visuals on energy including the evolution of America's energy supply, the impact plunging oil prices have on currencies, and where peak oil is in China.
While we still rely heavily on oil, it's also good to see some gains in the renewable energy sector to offset this dependence. In 2014, more than $270 billion was invested in global renewable energy projects. Canada kept pace with the global trend and invested $8 billion, putting it sixth in global rankings.
Source: The Visual Capitalist
The latest Statistics Canada report showed the country's trade deficit narrowed in September with imports falling for the first time in five months and exports of energy and consumer goods increasing. This brought the deficit to $1.73 billion from $2.66 billion in August. Following the shock of oil prices earlier this year, this report gives hope that the economy is stabilizing.
Given these figures, the Bank of Canada is counting on stronger exports to counteract the effects of a sinking loonie, as it plans to focus on trade and business investment. This comes as the Bank of Nova Scotia forecasts the loonie to sink further to 72 cents with little recovery over the next year.
But despite the ups and downs of the economy, it's important to stay on track of your own personal investments and continue to develop your investment strategy. If you've ever wondered why you make certain decisions and investments, check out my video on the psychology behind investing.
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