Interests rates inched up and, consequently, bonds fell back a little. Stocks continue to move ahead. The TSX 60 has hit a new high compared to any week since September 12, 2014. That means we’re back at the same level we were exactly seven months ago.
Remember what I said last week about Chinese stocks having the best momentum? And that I would ignore it, because it seemed to be a blip from a few months ago that was still working its way through the model? Well Chinese stocks (FXI) has a mind-bogglingly good week.
Chinese stocks (not surprisingly) continue to dominate the momentum. The funny thing about stock markets is that performance is generally asymmetrical. They rise slowly most of the time, but they fall quickly. The movements aren’t random, but fortunes are won slowly and lost quickly. It takes a lot of patience to win, but just one mistake to lose. Maybe that’s why human beings are generally terrible at investing.