January 30, 2017

On Monday, the S&P 500 was down 0.6% and Toronto was down 1.1%.

The rate reset preferred shares have continued to recover.

I sold my small remaining position in the Canadian Western Bank preferred share today at $20.61. I had bought this in an RRSP account at a discount and was up over 20% in addition to having received dividends. In theory, the price I paid is not relevant to the decision to sell but in practice we can’t help considering the price paid. The five year government of Canada bond has been bouncing around and the rate reset preferred in recent weeks were up even as the five year Canada yield was down somewhat. I decided to cash out this small position. ┬áIt helps to build my cash position in case there are bargains ahead.

As of Monday night futures are forecasting another modest decline in U.S. markets on Tuesday.

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