The Dow ended the day down 250 points or 2.0%. Toronto was down 351 points or 3.0%.
The market had reacted positively this week to news of the Greek election outcome and to the Fed’s operation twist. But the positive reaction has been short-lived. Today the market focused on the weak economy.
I am neither surprised nor particularly worried by today’s market decline. No doubt markets will continue to be volatile. But markets seem attractively priced. I am comfortable holding. However I would like to have some cash ready for bargains.
Canadian Tire was one of the few stocks that was up today. I sold a small portion of my holding in Canadian Tire today just to raise some cash.
Moodys down-graded some 15 large international banks today. They had telegraphed some time ago that they would do so. It seems like a non-event. Credit rating agencies have little credibility these days.