November 7, 2022

The market seems to want to sort of forget about last week’s bad news that interest rates will go even higher than recently expected by next Spring. On Monday, the S&P 500 was up 1.0% and Toronto was up 0.5%.

Companies are still taking over other companies at what looks like high prices.

Summit Industrial REIT is being taken over and jumped 25%. It’s yield at the new price is just 3.2%. I don’t know anything about it but that looks like a high valuation. The market cap is listed on Yahoo at $3.4 billion, so this is a big take-over.

Richie Brothers auction company is buying IAA a Chicago based auto auction business for some $6 billion and at a big premium to its recent price. Ritchie Brothers fell on the news as it seems the market does not like this deal. 

The point is that big corporate players are seeing value in the market.

Tomorrow is the big mid-terms election in the U.S. The market may react to the result on Wednesday morning especially if the results are different than expected.

 

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