Ouch, Thursday ended with the S&P 500 down 1.6% and Toronto down 2.1%.
Most stocks were down. Shopify was down 5.6%, Toll Brothers was down 3.9%.
Markets have concluded that the interest rates will be going higher and staying higher for longer. This is a gravitational downward force on future cashflows values and therefore on both stocks and bonds. The interest rate available on cash and GICs continues to rise.
The interest rate on the 5 year government of Canada bond surged again and is at 4.31% according to trading economics. Mortgage rates have increased once again.
This is a time when investors will benefit from having cash available for both short term interest and probably for picking up lower prices on stocks in the months ahead. As always, diversification is wise.