Q: Dear 5i
I have not seen so many down days for the TSX as i have lately . What's going on and why is the TSX so noticeably worse lately relative to the nasdaq and S&P 500 ?
Thanks
Bill
I have not seen so many down days for the TSX as i have lately . What's going on and why is the TSX so noticeably worse lately relative to the nasdaq and S&P 500 ?
Thanks
Bill
5i Research Answer:
Energy stocks, which are 18% of the TSX, have had a horrible month, down 7% in June so far. Bank stocks, with a big BMO miss and TD having its money laundering issues, are also faltering, down 3.4% in June. Financials are 30% of the TSX. With 48% of the index weak, the TSX is going to struggle. Biggeer-picture wise, our dollar is weak which detracts international investors, and our GDP and productivity are very low versus the US. The increase in capital gains taxes surely hasn't helped sentiment, either.