Daily Commentary

MarketMinder’s View: The 43-day government shutdown that sidelined numerous government agencies last fall is affecting some prominent economic datasets, with the Bureau of Labor Statistics’ (BLS) December CPI the latest example. Without BLS agents conducting their typical data collection last October and throughout much of November, the agency is opting to “carry forward” their last known price on several goods and services to December, which some experts interviewed here warn will lead to a “muddy” report. We can debate the merits of the BLS’s decision, but for markets, this is a benign issue. Markets price the economic factors most likely to sway corporate profits 3 – 30 months ahead, so the components baked into December’s CPI report—however accurate, come Thursday—are probably priced in already (outside of potential sentiment-based short-term wiggles). As comprehensive as the BLS’s measure may be, it isn’t the only source of price data, so markets were never flying blind on the inflation front.

MarketMinder’s View: There are several publicly traded companies mentioned here, so please note MarketMinder doesn’t make individual security recommendations. We are here solely for the broader theme: building up sensible investing habits. The article follows three young investors who learned about the stock market amid the postpandemic “meme stock” era, when some hit it big and others crashed out—a “wild west” environment that drew in some speculative types and spooked others. However, new data seems to suggest that more young folks have warmed up and/or begun investing with an eye on the long term. “And while observers worried that the meme stock craze would lead a generation of investors to double down on risky, short-term bets, more than 60 percent of investors with less than five years of experience say they are more patient investors now than when they began, according to Charles Schwab’s 2025 Modern Wealth survey.” We love to hear this. From the jump, we saw meme stocks as a short-lived moment of froth that drove some fear and greed among investors, regardless of age. But with experience, it appears some newer investors are internalizing some critical lessons that will serve them well (e.g., maxing out retirement plans and diversifying). Perhaps the kids will be all right indeed.

MarketMinder’s View: Here is a sobering lesson about liquidity and the importance of understanding what exactly you’re buying. “Across Canada, investors who poured billions into private real estate funds suddenly can’t touch their money. Stung by a deep downturn in the country’s housing market, many of the funds have restricted cash distributions, client withdrawals or both, in a process the industry calls ‘gating.’ Often, the companies don’t say when access will resume.” We highlight this story not to pick on any investor or fund, but because it sheds light on the issue of illiquidity, a major factor worth considering. Because the underlying assets (real estate, in this case) are much harder to sell, the funds discussed here have gate provisions allowing fund managers or other admins to block sales or withdrawals indefinitely. The aim is to prevent forced selling of portfolio properties at firesale prices to meet redemption requests, and it is pretty standard. But it can present a considerable problem if fundholders need to sell and access their cash quickly, say, for a big purchase or emergency use. Mind you, private Canadian real estate funds are a small, niche corner of the market, so we doubt there are broader investor implications here. But it is a useful refresher on a commonly overlooked risk.