April 25, 2017

Tuesday… Another day and another 200 points plus up for the DOW…

S&P 500 up 0.6% Toronto up 0.2%.

At this rate, it starts to feel like investing is easy.

CN Rail was down 3.0% after releasing earnings. But that comes after big increases in this stock in the past 9 months or so.

Toll Brothers managed to decline 0.8% today despite reports of a surge in new home sales int eh U.S. Apparently the market fears tat higher lumber prices due to the Canadian import duties will raise home prices and hurt profits.  With U.S. home prices still very affordable I suspect that an increase in lumber prices will not dampen demand much.

Markets are apparently salivating now over Trump’s possible corporate income tax cuts. I have yet to see a single article suggesting that in a competitive market much of the tax cuts could get passed along to customers. Have we, even in the free enterprise regions of the world totally given up on the idea that competitive forces are at work? Do we think price competition is totally absent?

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