February 16, 2022

It seems that markets remain nervous about the impact of higher interest rates and other risk factors.

Markets were down modestly most of the day but then rallied somewhat after the FED minutes contained no surprises.

The S&P 500 was up 0.1% and Toronto was down 0.55%. Oil is down from he recent high but remains above $90 for West Texas Intermediate.

Shopify was notable with a 17% decline after apparently beating earnings estimates but forecasting lower growth ahead. This again shows the risk of certain high flyer stocks with trading at huge multiples to earnings and even sales and pricing in massive growth. Shopify remains a great company and will grow. It remains hard to say if we have reached a bottom. My strategy would be to nibble only cautiously if at all. It remains expensive. If I owned it (I did recently buy just 10 shares) I would not sell but then again I have never been one to sell becasue a stock is down. Those with a huge position in this stock will have to make their own decision about selling any or holding on for the long term. High flyers can feature “easy-come-easy go”.

Scroll to Top