🌟 Editor's Note 👋
Hello friend 👋
📉 Today was a rough one. The Nasdaq just had its worst single day since April 2025 down over 4% and chip stocks got hit the hardest.
🏦 But here is the thing: Canada's most important rate decision of the spring is happening this Wednesday, June 10. And the latest data actually looks reassuring for borrowers.
💳 Plus, a company that quietly benefits every time a consumer spends money, regardless of whether markets are up or down, is our stock pick this week.
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☕ Let's cut through the noise.
🚀 Let's go!
🌍🔭 The Global Viewpoint 🌍🔭
The Great Chip Selloff: What Triggered Today's Crash — and What It's Teaching Us 📉 💻 ⚠️
What's Happening: U.S. equities tumbled today as a violent selloff swept through chip stocks. The Nasdaq Composite lost 4.18% — its biggest decline since April 2025. The S&P 500 dropped 2.64% to 7,383. The Dow lost 695 points or 1.35%.
Two triggers hit at the same time:
🤖 Broadcom's earnings disappointment — Broadcom reported Q2 revenue of $22.19 billion (+48% YoY) and AI revenue of $10.8 billion (+143% YoY) — both records. But the stock slid 12% after-hours when its Q3 AI revenue guidance of $16 billion came in below some analyst expectations of $17.2 billion, and management did not raise the full-year AI forecast.
💼 A blowout jobs report — A much stronger-than-expected jobs report for May — 172,000 jobs added versus just 80,000 expected — pushed Treasury yields sharply higher, with the 10-year yield rising above 4.5% and the 30-year topping 5%, fuelling concerns that elevated borrowing costs could weigh on high-growth tech valuations.
The damage across chip stocks today:
🩸 Marvell Technology: -16%
🩸 Micron Technology: -13%
🩸 Intel & AMD: ~-11% each
🩸 NVIDIA: -5.93%
🩸 Broadcom: -7%+
Why it matters: 💡 This is a textbook "sell the news" moment — combined with a macro shock from rising yields. Broadcom grew AI revenue by 143% and the stock FELL. Why? Because markets had already priced in perfection. When results are great but not greater than expected, investors sell.
For anyone new to investing, today is a living classroom: even excellent companies can see their stocks fall sharply in the short term. This is why owning a diversified ETF (like XEQT.TO or VFV.TO) protects you — you own hundreds of companies, so no single selloff destroys your portfolio.
The Takeaway: 🧠 The Iran war situation is also shifting — with Brent crude now near $93-94 a barrel, down from above $100 last week, as markets price in growing optimism for a peace deal. "The market is not seeing escalation between the parties. Even though we don't have a deal, it seems the market is seeing a de-escalation," said one senior analyst. Easing energy prices help — but rising yields are the new headwind to watch.
🇨🇦📈 Top Story: Canadian Market Pulse 🇨🇦📈
Wednesday is Decision Day: What to Expect From the Bank of Canada June 10 🏦 🇨🇦 📅
What's Happening: 🏦 The Bank of Canada's next rate decision is Wednesday, June 10 — and interest rate swap markets are now pricing between two and three quarter-point rate hikes by the central bank later this year, starting in October. But for June 10 itself, the picture is much calmer.
Bond markets continue to price a high probability of no change on June 10, with only a 4% probability of a 25-basis-point hike. By July 15, markets imply a 9% chance of a hike. The more realistic scenario is a prolonged hold rather than a sharp rate increase.
📊 Here is what we know heading into Wednesday:
🔒 Rate held at 2.25% since October 2025 — four straight holds
📈 The BoC upgraded its 2026 inflation forecast to average 2.3%, with inflation expected to peak at around 3% in April, before declining to 2.5% in June and back to 2% by early 2027
✅ April CPI came in at 2.8% — below the BoC's 3% peak forecast. That is good news
🛢️ Brent crude now near $93-94/barrel — down from $99 last week as Iran peace deal optimism grows — easing the oil inflation pressure
⚠️ The BoC has noted a rate hike may be needed to steer around energy-related inflation — but this is a conditional warning, not a commitment
📋 No Monetary Policy Report on June 10 — the next MPR is July 15, making Wednesday a simpler "hold and watch" announcement
The Move: 💡 The Bank of Canada is attempting to support an economy adjusting to the effects of an ongoing trade war, while also confronting broad-based inflationary pressures that limit its flexibility. These opposing forces widen the range of plausible policy paths. For mortgage holders and prospective buyers: a hold Wednesday keeps your variable rate stable, and easing oil prices reduce the chance of a surprise hike in July. Watch for Macklem's language about the path forward — that will matter more than the rate itself.
🚀 Stocks on My Radar: Yudara's Watchlist 🕵️♀️ 📊
Curious about specific companies making waves? Here is a stock I'm keeping a close eye on this week, and why it's caught my attention
Visa Inc. (NYSE: V)
💳 The Network Behind Every Tap of Your Card
The Update 📈
Visa's most recent quarter (fiscal Q2, reported April 28, 2026) confirmed the business is firing on all cylinders: revenue of $11.2 billion — up 17% year-over-year, the strongest growth since 2013 (excluding post-pandemic effects). EPS of $3.31 beat the estimate of $3.10. Payments volume reached $3.7 trillion (+9% YoY). Processed transactions: 66 billion (+9% YoY).
Why I'm Interested 🤔
🤔 Here is what makes Visa uniquely powerful for a new investor to understand:
💡 Visa does not lend money. It simply owns the infrastructure that trillions of dollars travel through — and collects a small toll on every transaction
📊 ~98% gross margin — for every $1 of revenue, Visa keeps 98 cents after direct costs. One of the highest margins of any company on earth
🌍 200+ countries. More than most governments
🛡️ Recession resilient — spending slows in downturns, but it never stops entirely. People still need to buy groceries, pay bills, and travel
💰 $20 billion share buyback authorized and quarterly dividend raised to $0.67 per share
Morningstar Rating: ★ ★ ★
52-Week Low/High (NYSE): $293.00 — $375.00
Recent Catalyst: 🔥 Strongest revenue growth since 2013, EPS beat, $20B buyback, and today's blowout May jobs report — 172,000 jobs added means more consumer spending flowing through Visa's network next quarter.
Disclaimer: This is for informational purposes only and not investment advice. Always do your own research or consult a professional before making investment decisions.
💡 Newcomer Financial Fundamentals 💡
This week's focus: Asset Allocation — How to Divide Your Money Like a Pro 🥧 📊 💡
😮 On a day when the Nasdaq falls 4%, this section is more relevant than ever. Because the investors who are NOT panicking today all have one thing in common: they know their allocation.
What is asset allocation? 🥧
💡 Asset allocation means deciding how to divide your investment money between different types of assets — most commonly stocks, bonds, and cash. Each behaves differently in a crisis:
Asset | Risk Level | Potential Return | What it does in a selloff |
|---|---|---|---|
📈 Stocks/Equities | Higher | ~10%/yr long-term | Falls — but recovers |
🏦 Bonds/GICs | Lower | 3–5%/yr | Holds steady or rises |
💵 Cash/HISA | Very low | 2–5% right now | Unchanged |
The rule of thumb that actually works 🎯
📊 A simple starting formula: subtract your age from 110 — that's roughly the percentage to hold in stocks.
🧑 Age 30? → ~80% stocks, 20% bonds/cash
🧑 Age 45? → ~65% stocks, 35% bonds/cash
🧓 Age 60? → ~50% stocks, 50% bonds/cash
Why today's selloff proves this matters 💡
🔥 If your TFSA or RRSP is 100% in chip stocks, today stings badly. If it is 70% in a broad ETF like XEQT.TO (which holds thousands of stocks across the world) and 30% in a GIC or bond ETF, today barely moves the needle. That cushion is your allocation at work.
The Move ✅
📱 Open your investing account TFSA, RRSP, FHSA or RESP at Questrade (use referral Key 426019605447668 to get a $50 bonus) or Wealthsimple. (Use code, OFZZHW to receive $25 bonus) commission-free. Start with as little as $50/month on a pre-authorized contribution plan and let it grow automatically. You don't need to watch the market. You don't need to pick stocks. You just need to start.
🔥 Community Corner: Connect & Grow! 🤝🌱
"The Nasdaq just dropped 4% today — should I sell before it gets worse?" 😰 This is flooding the inbox right now on June 5.
😤 The question arrives after every single significant down day. And the honest answer is always the same — backed by data.
🧠 Here is the framework for today specifically:
📊 What caused it? A strong jobs report (good for the economy, bad for yield-sensitive tech) and one earnings report (Broadcom) that was great but not great enough. This is not a recession signal. It is a repricing of high-growth stocks in a rising yield environment
📈 Context: The S&P 500 is still up significantly year-to-date even after today's drop. The Dow set a new all-time record on Thursday — yesterday. One bad day does not erase a trend
🛡️ What happens if you sell today? You lock in today's losses permanently. Then you face the impossible question: when do you buy back in? Most people who sell on big down days miss the recovery entirely
🎯 The three things that actually matter right now:
🟢 Your time horizon — if you don't need this money for 5+ years, today is irrelevant
🟢 Your allocation — if you're properly diversified (see Fundamentals above 👆), today's chip crash barely touches you
🟢 Your monthly contributions — if you're contributing $200 or $500/month to your TFSA, today you just bought everything at a discount. That is a good thing
💡 The investors who build real wealth over time are not the ones who predicted today's selloff. They are the ones who stayed invested through it.
💬 Need Personalized Guidance? For those deeper, one-on-one questions about your specific situation (Setting up TFSAs, RRSPs, FHSA, RESP, credit cards, stocks/ETFs picking or anything else!), I offer personalized coaching sessions. Learn more and book your spot! 💬
See you next week!
Warmly,
Yudara Bernard
Founder, Newcomer Wealth
Disclaimer: The information provided in this newsletter is for educational and informational purposes only and does not constitute financial, investment, or other professional advice. Always consult a qualified financial advisor for personalized advice tailored to your specific circumstances. Investing involves risk.