On Monday stock markets were strong. The S&P 500 was up 1.4% and Toronto was up 0.4%. It was another good day to be an owner of stocks.
I sold some Toll Brothers today. As mentioned yesterday, its earnings are basically certain to be lower in 2023. But then its P/E is so low that it may still look pretty cheap even with lower earnings. So it’s hard to say if the stock will head down or not. The outlook for 2023 will be more clear when it reports its latest earnings next week. Meanwhile I hedged my bets buy selling some Toll Brothers to raise cash but am also keeping for now more than half of my shares in the company.
The markets are now eagerly awaiting the release of January U.S. inflation numbers tomorrow morning. Analysts will be trying to guess if the FED will need to go higher than currently anticipated with interest rates or no. It could be a volatile day. (Never a dull moment.)