February 25, 2016

On Thursday, the S&P 500 rose 1.1% to 1952. This puts it 8.5% below its all time high. That is really not that much below the peak considering the inherent volatility and nature of stock markets. Toronto was up 0.1% to 12,754 and is about 18.5% below it’s all time peak reflecting far lower commodity prices.

The Canadian dollar rose 1.3% to 73.9 cents. It’s hard to know if that trend will continue.

As I thought it might, Toll Brothers had a good day, up 3.3%.

Bombardier was down 8.5%. I read something today about how if the Federal government invests in the C-Series then Bombardier will lose voting control of that project which now has a separate “Board” with membership from the Quebec government. It’s hard to see that news as a revelation given that Quebec owns 49.5% of the C-Series project and so if the Federal Government got the same deal, then Bombardier would own 1% – which would seem to be a very odd form of “bail-out”, more like a selling the project. I don’t think the federal government will get 49.5% since that makes little sense for Bombardier which would be left with only the 1% plus perhaps some options to buy back in. Did I mention Bombardier is one of the poorest-managed large companies ever?