There has obviously been a lot of volatility the past two weeks in all capital markets so I thought I might take just a moment to look at the stock market returns around the world (in C$, although it looks pretty much the same in U$) on a year-to-date (YTD) basis.
I have shown this page (taken from Bloomberg) before in a blog back in Sept/17: highrockcapital.ca/pauls-blog/things-i-wonder-about-my-shortest-blog-ever and today will be the same...short.
Without delay, here are some major stock market indices around the world with their return (excluding dividends so not Total Return) for the YTD and in C$ in the last column on the right side:
Notice anything here? You don't need a CFA to find the outlier. That's right, the Canadian stock market is fairly deep in the red after only 6 weeks. The question of "why" is one I will answer with very little detail:
Here at High Rock, we have continued to limit our exposure to Canadian oil and gas stocks even in the face of what look like cheap/tempting valuations. Disciplined Investing. We are also being extremely selective with our Canadian equity investing in other industry sectors as well for fear that overall economic damage is being done that could lead to real economic weakness, which will continue to lead to further economic pain in Canadian stocks.
More red, less green is not what we are looking for.