April 26, 2020

Markets were higher on Friday with the S&P 500 up 1.4% and Toronto up 1.2%.

Stimulus programs and signs of reopening have kept markets buoyant. Things that could push markets down include: continued weal economic data such as GDP and unemployment, Poor earnings reports and outlooks from many companies, oil companies shutting in production and also any perceived increased chance that the Democrats will defeat Trump in the Fall.

I still have work to do on Metro but expect to rate it somewhere in the Buy range. It’s at about a 52 week high. It’s a good company and certainly should continue to be a good long term hold.

The small business commercial rent subsidy program is good for tenants but not as good for landlords as I first thought. Landlords have to forego 25% of the rent in order that the tenant can participate. There will be pressure for landlords to participate. Overall, it’s probably not a bad thing for landlords since getting 75% of the rent beats getting nothing and trying to get it later. It may cause havoc on May 1 however as tenants might pay only the 25% and meanwhile the landlord has to apply and try to get 50% from the government sometime in May and has to coordinate with each tenant as to eligibility. There is a big administrative burden.

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