March 22, 2018

On Thursday, the S&P 500 fell a hefty 2.5% while Toronto was down 1.8%.

The spark was Trump’s moves to impose new tariffs on Chinese imports. I don’t think investors can claim to be shocked by this. Certainly Trump’s anti-trade views have been a risk to the market. And the fact that the U.S. market has risen so much since Trump’s election meant that it certainly had room to fall.

Some of the bigger decliners were companies heavily involved in trade. This included Fed Ex – down 5.1%. BHP Billiton down 4.0% and Linamar down 4.4%.¬† I’ve been trying to hold onto some cash in order to take advantage of lower prices if and when they occur. Today, I added modestly to my Linamar position. My approach in deploying available cash would be to go slow.

AutoCanada was up modestly for most of the day on news of a major acquisition. But it ultimately was swept into  the downdraft and closed down 0.7%.

AutoCanada is buying a group of eight dealers in a d around Chicago. This transaction is another indication that AutoCanada intends to continue with its growth by acquisition plans. At some point this could lead to more interest in the stock but given a current lack of enthusiasm for the auto industry, I don’t think we will see AutoCanda’s really stock take off. I had last rated the company a Buy in January. Since then it came in with strong Q4 earnings and now this announcement. I continue to hold AutoCanada and may add to my position.