May 31, 2018

Thursday was mostly a negative day on the markets.

The S&P 500 was down 0.7%. Toronto managed a 0.1% gain.

Most of the stocks on our list were down. I started a small position in Canadian Tire today.

The trade war between Canada and the U.S. is bad news and I think will harden attitudes in Canada toward the U.S.

I would not want to be a Canadian company that relies largely on exports (of anything) to the U.S. Many companies on our list have U.S. operations but none are primarily in the business of manufacturing things in Canada for export to the U.S. Still, this whole mess could slow the economy and also instills fear in investors which tends to push stock prices down.

In more positive news, Petronas of Malaysian is going to take a 25% stake in Canada LNG. I have been skeptical that any LNG plant with a cost in the range of $40 billion will be built. But perhaps the economics are there. It would certainly be a positive development if one or more large LNG plants actually go ahead.

Statistics Canada reported on Q1 GDP growth which was weak.

They report by production of GDP category:

http://www.statcan.gc.ca/daily-quotidien/180531/dq180531b-eng.htm?CMP=mstatcan

and by consumption of GDP category:

http://www.statcan.gc.ca/daily-quotidien/180531/dq180531a-eng.htm?CMP=mstatcan