Ouch, ouch, ouch. That was not a nice week, the third negative week in a row for the Canadian stock market. Bonds rose over the past week, but it’s not enough to outshine stocks. Even if the outlook for stocks isn’t very appealing, it’s still better than bonds and cash.
Remember last week when I suggested buying FXI? That didn’t work very well. Just about everything lost value over the past week, which is going to be my excuse for why Chinese stocks didn’t do well. They don’t look likely to outperform, but nothing appears any more attractive right now. I’d stick with them for the time being.
It’s my expectation, having yet to see any suggestion to the contrary, that this is a temporary setback. It’s one of those quick corrections (so far) that can’t be avoided and must be ridden out. Last week, I switched from MFC to GIL and so far, while I haven’t made any money, I lost less than I otherwise might have.