Market declines continue today with the S&P 500 down 0.6%. But Toronto is up 0.2%.
AutoCanada is down 4.0%. This could be related to the auto strikes. AutoCanada has been volatile but is a well managed company. It’s management is always focused on profitability.
West Texas Oil is down $82.50. It had recently spiked to $95. This dip is a negative for Alberta but in general oil is still relatively high and the oil industry is doing very well. Calgary home sales were at a record high in September as the population of Alberta continues to increase.
Lower stock prices are not a surprise. Ever since interest rates started to increase I have mentioned many times that higher rates are a gravitational force on stock prices. But I also think that for most people a balanced and diversified portfolio approach is best. It’s a nice time to have a reasonable allocation to cash and near cash. A strategy of “getting out” of equities when they are forecast to decline (or certainly after a decline) is generally unrealistic.
What could be more realistic is to get out of certain companies that might be headed for bankruptcy. I’ll be looking closely at debt levels and the interest rates being paid as I update companies.