On Thursday … stocks got cheaper.
The S&P 500 was down 2.1% and Toronto was down 1.4%.
One of the few gainers was Canadian Tire up an impressive 3.1% as its new or incoming CEO predicted profit growth an at investor day conference. Those holding a a large position in it may wish to reduce their holdings or even sell entirely.
This stock is up over 100% in three years since the Summer and Fall of 2011. Back then it got ridiculously cheap on worries that Target coming to Canada would give it a pounding. Turned out, not so much.
With stocks down today I figured I should do a little buying. I added to my small position in Canadian Western Bank and opened a new position in Visa.
I can’t predict where the markets will head in the short-term. I do know that most (but not all) of the time it turns out to be a mistake to sell heavily into a decline because it is the rare investor who ever managed to get back in before the market has already recovered most or all of the lost ground.
We are just entering into the third quarter earnings season. Those reports could determine where the market heads next.