The TSX Composite's pullback began the session after the Bank of Canada's September 2 rate hold and has continued as the tanker war between the US and Iran escalates. The decline is unrelated to energy, yet clients watching oil surge are increasingly asking to add energy exposure now, repeating a pattern Terrance Odean's research on frequent traders has documented as a loser. The tanker war's next turn cannot be forecast, which is exactly the condition under which that instinct does the most damage.
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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The Bank of Canada held its policy rate at 2.25% for a seventh straight time, yet Canadian yields rose as United States yields surged.
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Canadian yields drifted higher through August even though the Bank of Canada held its policy rate at 2.25% and had no decision to make during the month.
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Gold rallied and gold miner shares carried the TSX higher, while Brent ended the month close to where it began.
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