I’m not surprised that markets are down today (S&P 500 down 1.6% and Toronto 1.0%).
I believe I have mentioned that stocks markets have been slow to react the the very recent increases in longer term interest rates which has occurred becasue the FED is now expected to ultimately push rates higher than previous thought/hoped. During January, the U.S. ten year yield fell sharply from 4.14% down to 3.39% which pushed stocks higher. Now in February the ten yield yield has risen fairly sharply to 4.01%. So it’s no surprise that stocks are down and they may not have fully priced in these higher rates yet.
Today I had planned to add to my Enbridge rate reset preferred share position ENB.PF.A and to Visa Inc. But I did not like the idea of reducing my cash position which is still not that large. And I did not find anything to sell so I will do nothing today.
My fingers are crossed for the Toll Brothers earnings release after the close. It could certainly include a poor outlook. As posted here, I did reduce my Toll Brothers position recently to hedge my bets and raise cash.