On Wednesday, the S&P 500 was down a hefty 3.3% and Toronto was down 2.1%.
I don’t think investors can complain much about the S&P 500 giving back a little of the big gains it has recently made but complaints about the TSX being down 2.1% are fair enough given that it is not much above the level it was at in 2008 before the financial crisis.
Similarly, some stocks like TFI International which was down 5.6% are still up strongly in the past year. But even stocks that already seemed quite cheap like Linamar (down 3.3%) were also pushed down although in most cases not as much as the market average.
Among the rare gainers today was… actually upon checking there were none on our list that were spared today with the exception of the Enbridge rate reset preferred share on our list that managed a 0.15% gain.
Most of the time a sharp dip like this is followed by some recovery but that is certainly not always the case. The U.S. economy remains very strong but to some degree the U.S. stock market was priced for something close to perfection… so a stiff correction is certainly possible.
Higher interest rates are starting to bite.
Conveniently, Trump can blame the market decline on the FED.