813 Points On the Good News
The TSX dropped 814 points today on the good news that the US had passed a bill to bail out the financial markets.
Makes you wonder what the market knows that we don’t.
Canadian stocks fell the most in almost eight years, led by a record drop in raw-material shares, as tighter credit, rising unemployment and lower home prices threatened to tip the U.S. into a recession.
“Commodities are getting pummeled,” said Martin Anstee, a fund manager at Stone Asset Management in Toronto, which oversees about $800 million. “People are forecasting a wall of recession, which means lower commodity prices. We had a good run on higher commodities — now we’re taking it in the neck.”
Look like we’re in for a ride… the bright side is that Kraft Dinner might come down to be affordable again.
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October 2nd, 2008 at 2:31 pm
And yesterday the TSX was up over 500 points, on bad news? Go figure.
October 2nd, 2008 at 3:16 pm
The inflationary effect on the USD is going to increase the value of the CAD in relation to the USD and put a large squeeze on our manufacturing sector, and any business that exports to the US.