September 13, 2016

Tuesday was a down day in the markets with the S&P 500 falling 1.5% and Toronto down 1.7%.

A drop in oil prices was identified as part of the reason for the market drop.

Some of the bigger moves down were:

Bombardier down 4.1%
Agrium down 3.6%
Wells Fargo down 3.3%
Element Financial down 2.9%

Wells Fargo has paid a large fine and admitted that its employees opened someĀ  2 million accounts that customers had not asked for. They did this to meet sales targets.

Wells Fargo is a sales and goal driven company. And there is a saying: “What gets measured gets done”. Unfortunately there are also other sayings such as “What gets measured gets manipulated” And what gets measured and rewarded or punished is most certainly at risk for manipulation.

This is a big deal for Wells Fargo. But they will fix the problem and move on.

The Canadian dollar fell almost 1% to 75.9 U.S. centsĀ This cushioned the losses (as measured in Canadian dollars) for those holding U.S. investments.

I am not inclined to move money into U.S. investments at 75.9 U.S. cents. If I had U.S. cash I might move some of that back to Canada especially if I could get a good exchange rate.

For the most part I am holding my investments and not trading that much. I will look to put the small amount of Canadian cash I have into investments if the market continues to decline.