Anchoring bias, not disappointment, explains this week's mismatch between Canadian bank earnings and stock reactions. Toronto-Dominion posted the week's strongest profit growth, up 38 per cent, yet its stock barely moved. Scotiabank's smaller 18 per cent profit gain still drove a 7 per cent share surge, its best trading day in more than six years, because investors judge results against what markets had already priced in rather than against the number itself.
This chart is presented for general informational purposes only and does not constitute financial, investment, tax, or legal advice. Figures reflect the source and period indicated and may no longer be current.
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