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Smart Celebrations: How to Stretch Your Holiday Budget Without Sacrificing Joy

  The holiday season often brings cheer, but it can also strain wallets. With rising costs and endless temptations, keeping spending under control requires a thoughtful approach. Here are some practical strategies to help you celebrate without financial stress: Set a clear budget : Decide how much you can afford before shopping, and stick to it. Prioritize experiences over things : Shared activities like baking, movie nights, or volunteering can be more memorable than expensive gifts. Shop smart : Compare prices online, take advantage of seasonal sales, and avoid last-minute splurges. Give creatively : Handmade gifts, personalized notes, or “time vouchers” (like babysitting or cooking a meal) often mean more than store-bought items. Limit impulse buys : Make a list before hitting the stores—or browsing online—and resist adding extras. Plan ahead for next year : Start a small savings fund in January to ease the burden when the holidays roll around again. By focusing on tho...

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Why the U.S. economy outperforms Canada's: A guide for investors

 

If you are looking for a stable and prosperous market to invest in, you might want to consider the U.S. economy over Canada's. Despite the challenges posed by the covid-19 pandemic, the U.S. economy has shown remarkable resilience and growth, while Canada's economy has lagged behind and faced several headwinds. Here are some of the key factors that explain why the U.S. economy is in much better shape than Canada's.

1. GDP growth: The U.S. economy grew by 6.5% in the second quarter of 2023, surpassing expectations and marking the fastest pace since 2003. In contrast, Canada's economy contracted by 0.3% in the same period, the second consecutive quarter of negative growth, indicating a technical recession. The U.S. economy has recovered all the output lost during the pandemic, while Canada's economy is still 2% below its pre-pandemic level.

2. Fiscal stimulus: The U.S. government has enacted several rounds of fiscal stimulus to support the economy during the crisis, totaling about 25% of GDP. These measures have boosted consumer spending, business investment, and job creation. On the other hand, Canada's fiscal stimulus has been more modest, at about 17% of GDP, and has been less effective in stimulating demand and growth.

3. Monetary policy: The U.S. Federal Reserve has maintained an accommodative monetary policy stance, keeping interest rates near zero and buying $120 billion of bonds per month. This has helped lower borrowing costs and support credit markets. The Fed has also signaled that it will not raise rates until inflation is moderately above 2% for some time and the labor market is fully recovered. Meanwhile, the Bank of Canada has been more hawkish, tapering its bond purchases from $4 billion to $2 billion per week and hinting at a possible rate hike in late 2023 or early 2024. This has put upward pressure on the Canadian dollar and made Canadian exports less competitive.

4. Trade relations: The U.S. has improved its trade relations with its allies and partners under the Biden administration, rejoining the Paris climate agreement, the World Health Organization, and the Trans-Pacific Partnership. This has enhanced the U.S.'s global leadership and influence, as well as opened new opportunities for trade and investment. On the other hand, Canada has faced some trade disputes with its major trading partners, such as China, Saudi Arabia, and India, over issues such as human rights, security, and agriculture. This has reduced Canada's access to some lucrative markets and increased its reliance on the U.S.

These are some of the reasons why investors should take note of the U.S. economy's superior performance over Canada's. The U.S. economy offers more stability, growth potential, and diversification than Canada's economy, which is more vulnerable to external shocks and domestic challenges.

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