On Wednesday, markets were initially up. They then initially rose even more when the Fed increased rates as expected but then fell when the Fed indicated it still planned probably two rate increases in 2019 (down from three but not down to one or none as hoped).
At the end of the day, the S&P 500 was down 1.5% and Toronto was down 1.1%.
It seems that investors are in a nervous mood, scared of further losses and so almost all news is interpreted more negatively than normal which pushes stock prices down.
I am seeing P/E ratios on stocks that I have followed for years that before this I only saw during the depths of the 2008/2009 financial crisis.
FedEx was down 12.2% after it released its fiscal 2019 Q2 earnings and sharply reduced its earnings forecast for fiscal 2019.
Amazon was down 3.6%, TFI International was down 3.2%. The Boston Pizza untis were down 2.9%.
Melcor Developments bounced up 4.4% but that just offset a decline yesterday…
Linamar was up 2.1%.
Regarding insider trading, Tim Melton bought 3,285 shares of Melcr Developments through his Cavell holdings at $12.45 on Thursday last week and this was reported yesterday. This brought Cavell’s share total up to 1,867,994 shares. That is a tiny addition especially considering he is also one of the largest owners of the family holding company that owns 15.7 million shares. But this purchase is at least a small show of confidence and is probably designed to show confidence.
At Boston Pizza Royalties a director (trustee) bought 1250 shares in his spousal RRSP today at $14.89. I believe he is a newer trustee and may have been required to buy shares over time. But I believe this purchase in a spousal RRSP would indicate a belief that the units are a good investment.
In my own trading I reluctantly sold some of my Couche-Tard shares today. I wanted to have some cash in case even better bargains continue to emerge.