The market responds (Apolitical Staples)

The market responds

I don't wish to downplay the negative effects of the changes to Income Trust taxation but has anyone else noticed that the TSX has bounced back pretty nicely in the last couple of days. It still stands 100 points lower than it was pre-announcement but that is a lot better than 325 points down. I guess investors are reallocating their portfolios which is causing other sectors to rise. Well that and the fact the unemployment is down, again.
Since I invest mainly in index matching funds I can easily ride this out and paper loses should be taken care of early next week.

Posted on November 3, 2006 | Permalink

Comments (3)

'expert' tom:

That with the Dow, Nasdaq, and S&P all down in the last few days. Looks like the Canadian economy is in pretty good shape.

Posted by 'expert' tom | November 3, 2006 4:19 PM

Posted on November 3, 2006 16:19

Robert McClelland:

The whole TSX wasn’t affected. Just the income trusts. And that slight rebound today was most likely just a dead cat bounce.

Posted by Robert McClelland | November 3, 2006 4:38 PM

Posted on November 3, 2006 16:38

Erik Sorenson:

Robert, the “slight” TSX bounce you allude to was just under 200 points, of the 290 or so lost on the day after the announcement. Friday’s increase was 108.31 points. It will come back, not to the “glory” days of ICs, but well enough so that all the people (including me) screaming “I lost (really?) $15,000” will have to say, well, it might be a few thousand when they do sell, and probably at a profit from when they originally bought the IC.

Some people did get hurt; it’s impossible not to ffest someone. But the Iggy-wailing “$24 billion lost” is a crock, as usual.

Posted by Erik Sorenson | November 4, 2006 3:16 PM

Posted on November 4, 2006 15:16

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