On Wednesday, the S&P 500 was up 0.95% and Toronto was up 0.8%.
AutoCanada was up 6.3%. For the last six months it has had a number of dips and then recoveries.
Melcor Developments was up 3.1%. But as is virtually always the case that was on a tiny volume and so may be a meaningless move.
Aurora Cannabis is closing one of its facilities in Edmonton. I have not had a rating on it for a long time but my past comments have been negative. This company over-expanded some years ago and has been in poor shape for quite a while.
Oil is strong at over $72 U.S. dollars for West Texas.
FedEx was down 9.2% after releasing disappointing earnings. This company has had far more volatile earnings than would be expected. It had gotten a big boost from all the COVID-related home shopping.
The FED today signaled that its bond buying would soon start to taper off. This was as expected. But they also signaled they might taper it down to nothing by mid-2022 which is a bit sooner than had been expected. They also signaled no interest rate hikes for now. But there are indications that the FED rate will go up from about 0% now to about 2% in a couple years. The market seems to be ignoring that. It’s well accepted that ultra-low interest rates are responsible for high P/E ratios (and therefore high level) of the market. Investors should be aware that a P/E contraction could certainly occur over the next couple of years. That is, it might be wise to have some cash and certainly to not be 100% in equities especially for older investors. Such caution has NOT been rewarded since the market bounced off its lows around late March 2020. But at some point caution (perhaps a better word is prudence) will likely be rewarded.
I was at Costco from about 5:15 pm to 6:15 tonight. It was of course busy. Not jammed by any means but reasonably busy. I marvel at their success and the prices on products. Not everything in there is cheap of course. I saw $1000 dollar speakers for example. I like owning shares even if the stock always does seem expensive.