Friday was a relatively quiet day for the markets with the S&P 500 unchanged and Toronto up 0.2%.
And there were no noteworthy movements in any of the stocks on our list.
A possible headwind for the markets is the political situation. Friday there was a new revelation that the FBI had opened an investigation in 2017 into whether Trump’s actions were a benefit to Russia. Apparently this investigation was later folded into the Mueller inquiry and the outcome is unknown. Trump’s former long-time lawyer is going to testifying publicly in front of Congress. And at some point the Mueller report will be released. All of this will lead to more turmoil for the President and could certainly send the markets lower.
Then there is the partial government shutdown. That is creating turmoil. So far it has had zero impact on the reports for initial claims of jobless benefits or the unemployment rate. But could it directly and indirectly lead to a surge in jobless claims and the unemployment rate? I would think so. And the partial government shutdown will likely lead to various delays that could lower corporate revenues and earnings. I saw a report where sales of existing homes were delayed because federal flood insurance could not be accessed. I don’t know if this will affect Toll Brothers’ ability to close and deliver homes. Any number of companies could be affected in unexpected ways. On top of that there is the potential for more turmoil if Trump declares a national emergency to get his Wall funding.
It would seem wise for investors to have some cash available in the event that the market offers up bargains due to the turmoil.