May 27, 2018

On Friday, the S&P 500 and Toronto were each down 0.2%.

Oil (West Texas) has declined about 5% to $67.14. Apparently this was due to rumors of OPEC volume increases.

Those holding various stocks are always waiting for positive news. Mostly we wait for quarterly earnings releases. But there are sometimes other announcements such as major contracts or even a corporate take-over announcement. Given my particular portfolio, the next news I am looking forward to is the earnings report for Canadian Western Bank which should be out on June 7th. I believe it should have good results based on its focus on commercial lending and the improved activity in Alberta. What really matters to the stock price is whether it beats expectations (more correctly whether expectations prove to have been too low) and what it has to say about the outlook.

The Canadian dollar is trading right around 77 U.S. cents even. It had gotten to about 76 cents for a about a week in March. But other than that one week this 77 cents is the lowest in almost one year. Over that year it has averaged somewhere around 79.5 cents and did briefly hit 83 cents last September and 82 cents in February. Based on this range and knowing that the future direction is always uncertain, it might be a good time to repatriate some America cash. In particular, if someone has U.S. cash and was waiting for a good price to convert, 77 cents (about $1.30 Canadian per U.S. dollar) might be reasonably attractive to convert at least some around 77 cents.