On Wednesday it seems that the markets accepted a doze of reality regarding the pandemic and the S&P 500 fell 3.5% while Toronto fell 2.7%.
FedEx was one of the bigger decliners – down 5.25%. I have been working on an update for FedEx. It’s latest quarter was very strong but the stock price (even with this dip) seems quite expensive and is basically assuming that FedEx will continue to benefit greatly from the pandemic.
VISA Inc. was down 4.8% but then rose slightly after-hours when it released lower but better-than-expected results. I am inclined to nibble on this high quality company especially on further dips. I added a little to my position today. Cross-border revenues (and lucrative currency exchange fees) have declined sharply but they are still benefiting from the move away from physical cash.
It’s never easy to guess the direction of the market. But I view the next week or more as a time for volatility (code for risk to the downside, since no one minds volatility to the upside).