On Monday the S&P 500 was up 0.6% and Toronto was up 0.95%. So it was another good day to be an investor holding a diversified portfolio.
AutoCanada was strong with a 5.0% gain.
This morning we had two banks reporting earnings. Bank of Nova Scotia and Bank of Montreal both increased their allowances for expected loan losses. But Bank of Nova Scotia’s share price is up moderately on the news and Bank of Montreal is down only very slightly.
The yield on the government of Canada five year bond has dipped to just below 4.0%.
These are signs that the economy is weakening. If we are near the end of the interest rate increases then bonds and preferred shares should begin to show some capital gains. We may have now seen the peak of GIC rates. In any case locking in some portion of a portfolio at higher interest rates is prudent although the future is never certain.
Stocks are off to a strong start this morning.