July 19, 2021 10:20 am eastern

Markets are down due to the virus (especially Delta variant) now spreading fast including in the U.S. Obviously the pullback could deepen but overall there is little indication that a big sell-off is underway. In any case it would be an opportunity for those holding ample cash.

I notice this morning that the North American Construction Group 5.5% debenture was down to $103.50. It declined because the stock declined and it is convertible. It’s now back down or close to a point where it is a reasonable fixed income investment even if it never converts. I put in a order for some at $102.50 but I may not get it at that price. One interesting thing: You don’t have to worry whether a bond has just paid its six month interest or is close to its next payment. Instead, if buying you must pay the accrued interest since the last payment since you will get that but have not earned it. It just means you don’t have to worry about that aspect of the timing.

Oil is down 4,4% due to the OPEC agreement that I mentioned yesterday.

Canadian Tire is down a bit more to $186 and I am adding a little to my position.

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