The TSX dropped yesterday and I’m not really surprised. The last few days are historically significant.
The Canadian political landscape changed very drastically over night. Bin Laden is gone.
Since September 9, 2001 when the towers fell there was great uncertainty regarding the security of our country and the price of oil. With Bin Laden gone, there will be some sense of stability in oil prices going forward because the market will feel that the supply is not as much a risk. As a result, take some money off the table because there will likely be some reduction in pricing and there will be better opportunities for profit in other sectors.
With the change in Canadian goverment there is a likelihood of more stability in policy and security for our country. This again means there is a greater chance for profit in areas other than natural resources. I believe it’s likely the market will take some assets out of the natural resources and assume a little more risk in equities. Remember, this is just an opinion. You need to have your own!
I think the market is doing what it always does. Just adjusting to the new reality and moving on.
I have to say, the Canadian political and business landscape is more interesting than it has been for years!
Go Canada Go!
What am I thankful for today? I’m thankful to be Canadian. I’m thankful I have a great son and two wonderful daughters! I’m thankful for all of the terrific people I have been blessed to meet in my life.