Markets are down this morning (S&P 500 down 1.7% and Toronto down 1.3%)
This is not exactly a shock given Omicron and probable higher interest rates and also given the fact that President Biden’s planned fiscal stimulus bill has apparently died when a Democratic Senator refused to support it and also given the huge gains in the market this year.
It may be a time to pick up bargains but that should be done quite cautiously.
Seeing CN Rail down over 6%, I bought back a small amount of CN Rail shares that I had sold about two months ago at a higher price.
Despite projections of central bank interest rate increases, government bond yields are down. The Canada five year bond is down to 1.15%. This could lead to some bargains in the rate reset preferred shares. Convertible debt issues may also decline and could be attractive if bought below par if we are confident that they will ultimately mature at par. A convertible bond ETF is CVD on Toronto. With any of these ideas it seems wise to proceed cautiously in small steps. The market down draft could certainly get much lower.