Vox canum

Just in time for the federal election the stock market laid an egg. Well, a little one. But nonetheless fowl.

Why did equities give up 2% in the biggest daily slump since July? No, it was not just anticipation of the GreaterFool poll results (more on that below). Also (a) worry about China’s sick property conglomerate Evergrande, (b) expectation the US Fed will lay the groundwork this week for turning off the stimulus tap, (c) a looming American debt ceiling deadline with the potential for a government shutdown, (d) higher inflation and lower housing sentiment (e) too much Covid, too many unvaxed and (f) concern Biden’s massive $4-trillon stimulus package won’t progress.

So it’s the September sell-off a lot of analysts were expecting. Markets have broken below key support levels, suggesting this will go further than 2%. Let’s hope so. Ten per cent would be nice – blowing off some of the excess exuberance, punting the crowdfunding Reddit manipulators out on their artfully-tattooed backsides, and reminding the all-equity cowboys in the steerage section there’s a reason smart investors have balance and a nice collection of differing assets.

Corrections are normal. They’re healthy. We haven’t had a decent one since the reopening trade started well over a year ago. From the virus-low of March, 2020, markets have about doubled. The longer we go without modest pullbacks, the greater the risk of a more serious retreat. The current bundle of worries is triggering a wave of selling and taking risk off the table. Do not be deterred. With less than 30% of the global population vaccinated, there is a helluva reopening trade still to come.

Now, about Canada.

Might be a late night but there’s no need to wait up. According to 4,906 blog dogs who voted here in the last few hours, the Tories have it in the bag. Massively. You gave O’Toole 60% of the ballots, with the Libs a distant second, forming an opposition coalition with some party called ‘None of the Above.’ Trailing badly were the Dippers, barely beating out Mad Max while the Greens turned into compost. Most of you voted in advance, believe the economy (duh) is the major issue and concluding the campaign sucked.

Finally, who are you?

The bulk are Mills and GenX, with a fifth being wrinklies. Ontario and BC residents dominated the poll. Half have a household income north of $150,000 and more than 50% have net worth (including real estate) of a million to five mill. Dozens and dozens of you possess more than $10 million, and we have just sold your data to some dude named J.Singh. Expect a call.

Well, there she be. Now let’s see what the rabble does.

The GreaterFool 2021 Election poll

CLICK IMAGE BELOW TO SEE SURVEY RESULTS (a new browser window will open, then click on the reduced image to view full-size)

About the picture: “Hey Garth, I read your column everyday and appreciate all your free financial advice, B & D always,” writes Randy.  “This is my sister’s dog, named Trudeau. She is a millennial who has given permission to use this picture after Sept. 20th when his namesake is top dog again.” Do you have a pooch to share with the pack? Send a picture to me – [email protected]