Find answers to your questions | Demystify the economy

Recently, online brokerage firms have offered to carry out transactions for the sale or purchase of securities free of charge. These companies are certainly not operating at a loss. It would be interesting to know where they get their income from when they offer this service free of charge.

Hello. From what I understand, low interest rates and monetary easing by central banks have fueled the rise in stock markets and real estate. Interest rates are going up. What about monetary easing? What is the effect of monetary tightening on the market decline?

My grandson turned 2 recently. Since he was born, on his birthdays and at Christmas, we put money in an RESP for him. For several years, we have heard that it was one of the best investments with the contribution of the government. But is this still the case? Given the economic situation, should we favor another investment for its future?

Financial advisors tell us to stay calm and consider the medium and long term for our actions. Why are the markets so nervous and volatile then?

When it is announced that inflation is x % for the month of May, how is it calculated?

Gasoline is almost $2.22 a litre. I say almost, because in fact it is $2,219. I think it’s time to get rid of the insignificant tenth of a cent. I would be very curious to know how specialists in the field can explain to us how pumps can manage to calculate a measurement that does not even represent a drop.

Where are the huge profits of seafood wholesalers going? Or the difference between the price paid to fishermen and the price demanded from consumers, for example for crab and lobster?

Are Hydro-Québec surpluses transferred to government coffers? If so, by what mechanism?

How to explain that the daily variations of the S&P/TSX index are very often similar to those of the S&P 500, while their composition is different?

How can there be unemployment when there is a labor shortage?

It is usually said that the price of gold rises during inflationary periods. It is also said to increase when there is a lot of uncertainty. However, despite the fact that these two factors come together, the price of gold has been fairly stable for two years and has even fallen recently. Is the above statement wrong or are there other factors?

I would like to know why the ruble returned to its pre-war value despite the measures taken by NATO.

How is the economy’s GDP calculated? Where does the data come from?

Would it be possible to have a fairly detailed article on the role of gold in the stability of Canadian, American or other currencies?

The performance of the Caisse de depot et placement du Québec is often praised. Why does it not offer the public an equivalent mutual fund, whose investments would reproduce as automatically as possible the Caisse’s current investments? As a small private investor, I would love such a fund! Just a single fund sold without advice on the internet, intended mainly for retirees. It seems so obvious to me that there must be regulatory constraints that prevent it, but are they justified for the common good?

Questions concerning the construction of housing, in particular social housing. How are they financed, ie how much money does the government put in and how much do the tenants pay? Moreover, is it true that the construction of this type of housing helps to slow down inflation? Or on the contrary, does it not contribute to inflation, with the demand for materials, land and workers to build these dwellings ?

I would like someone to explain to me the concept of the price/earnings multiple, which is frequently cited in various forms by analysts and managers of equity portfolios on the stock market. How is this price/earnings multiple calculated? Also, can the comparison of multiple prices/earnings between companies in the same sector be used to compare their level of high price or not on the stock market?

Hello, I would like to know if there are other products than oil whose price is fixed on the international market and why.

Hello, I can understand that an oil importing country has no choice but to suffer the current market increases. But for a country like Canada, which is an oil exporter, why should the Canadian consumer pay such increases in the price per litre? The price at the pump should be related to Canadian production costs, plus a reasonable profit margin. How come the price at the pump increases so quickly with market speculation?

If we want to put money aside in a TFSA, can we add amounts regularly? Can we put in $1,000 a month instead of a single payment of $12,000 a year?

My question stems from the context of anticipation of future interest rate hikes by central banks in order to calm inflation in the economy. In the stock market, why do we say that higher interest rates can reduce the value of stocks?

Could you explain the ins and outs of corporate stock buybacks? What are the benefits, for the company, for the remaining shareholders, for the sellers, etc. ?

Could you explain the link between inflation, the key rate and bank interest rates?

Although I actively follow Canadian economic activity, I must admit that I do not quite understand how the application of the tax on softwood lumber crossing the border into the United States works. I would like to read an article that clearly explains the whole process, the application of the special taxes resulting from the American requirements, clearly showing the price differences. Why is it not only US customers (product buyers) who bear the additional costs of products that cross borders?