January 5, 2014 Comments

Monday was a negative day in the markets.

The S&P 500 was down 1.8% and Toronto was down 2.5%

Canadian Western Bank was down 5.0%.

Among the few gainers was RioCan REIT up 1.6% and Toll Brothers up 1.6%.

Is it time to scoop up bargains? Well that is never easy to know. To me, a policy of adding to positions on lower prices makes sense.

It’s my understanding that oil is like any other product or service in that the supply offered will rise at higher prices and fall at lower prices. Demand will do the opposite. The forces of demand and supply will tend to push oil prices to a logical place. I believe in economics in the absence of market power the price is supposed to reflect the marginal cost of the incremental supplier.