As I sit at my desk on this Friday afternoon heading into the long weekend, I can’t help but smile when I look at the graphic below. What you see there is the 1-year chart comparison between the S&P/TSX60 (Canada - upper blue line); and the red line - representing the S&P500 (US).
The sharp drop we saw in both indexes in early April can be directly attributed to intensified tariff threats coming out of the US. Since then, we’ve had quite the surge back up - to new highs. Throughout the spring and summer, I’ve been actively taking profit, in order to rebalance and protect capital, for all clients. This means we now have approximately 10% cash at our disposal, for possible near-term buying opportunities.
For the few months leading up to February, Canada was performing pretty much in lock-step with the US. However, since April, our market has been steadily outperforming our neighbours to the south, thanks to a whole host of reasons I won’t go into right now (stay tuned for that in September).
Below the chart, I’ve included a list of today’s top 10 Canadian companies on the S&P/TSX. Royal Bank and Shopify have been vying for the top position all of August, which has been interesting to watch.
The fall should prove to be interesting, so put on your seatbelts!
P.S. If you’re reading this and you’re not already a client – why not consider getting in touch with me, for a complimentary portfolio review?
Libby
*Source: FactSet
*Source: iShares
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