Monday, May 19, 2008

TSX: On the Brink of 15K

Just a few months ago, there was a lot of talk about the global economic downturn and dire warnings of a major bear market. Well, if you're an investor of the TSX Composite Index, you might be wondering what all the recession talk's all about as the TSX is within a few points of reaching the 15,000 mark. Well, I didn't expect that to happen so soon!

Thanks in most part by the latest surge in oil prices (and natural gas too), the TSX is in record territory and the question is, will the party continue...

Well, I have no idea but considering I didn't really partake in this rally in any major fashion, I am currently establishing a list of stocks (including some energy-related bear ETF's) I'd like to get my hands on if a dip does occur anytime soon.

Wishful thinking?

Perhaps, but like we have seen in the last year, stranger things have happened.

1 comment:

White Eagle said...

David Berman of The Globe And Mail wrote today that

"The S&P/TSX composite index closed at 15,047.34, up 63.14 points or 0.4 per cent on Tuesday. Energy stocks, led by Suncor Energy Inc., Canadian Natural Resources Ltd. and EnCana Corp., rose 3.1 per cent. The driver here, of course, was crude oil, which sprinted to a new record on concerns that, hey, the world doesn't have enough of the stuff. It traded at $129.07 (U.S.) a barrel in the late afternoon, up $2.02 – moving steadily toward a number of forecasts that calls for oil to hit $150.

The materials sub-index edged 0.7 per cent higher, thanks to a spike in gold prices. Gold rose to $919.50 an ounce, up $14.30, on concerns about inflation and the U.S. dollar. Barrick Gold Corp. rose 4.2 per cent.

But elsewhere, the benchmark index looked vulnerable. Eight of the 10 sub-indexes fell, with financials tumbling 1.2 per cent. Worse, key go-go stocks dipped sharply, with Research In Motion Ltd. falling 2.2 per cent and Potash Corp. of Saskatchewan Inc. falling 2.7 per cent – evidence that the benchmark index is actually firing on just two cylinders: oil and gold."