October 3, 2023

On Tuesday, the S&P 500 was down 1.4% and Toronto was down 0.8%. A lot of the stocks on our list were down more like 3%. The Melcor REIT got clobbered.

The BIG news was government bond yields jumping up again. The 5 year Canada bond yield spiked to 4.5% before retreating very slightly. This is likely to read to even higher mortgage rates immediately.

Investors are bailing on some stocks.

In my view it is never a good idea to panic. If you have a reasonably balanced and diversified portfolio you could certainly see some declines but history suggests you will come out the other side in good shape. And those with cash can nibble on bargains but not get in a hurry.

Certain illiquid thinly traded stocks can really tank but this can be a buying opportunity.

There are times when it seem the market will try to shake you lose from holding certain good stocks. This may be one of those times.

CN Rail is suffering a big computer system outage that has suspended operations of commuter trains in Toronto.

I’m traveling home from Spain on Wednesday so my next comment will be Thursday morning.

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