5 February 2018

According to John Zechner, chairman of investment firm J. Zechner Associates, there was certainly some panic selling today, and it was anticipated as the markets can’t grow endlessly.

“Markets go up and then they go down, and we’ve just seen some part of this pattern,” – he noted.

“There’s a lot of money flowing at the markets, and people have seen this industry as almost infallible during the previous year, buy everyone knows there should be a turnaround at some moment.”

Growing bond yields also keep affecting shares as investors worry about higher inflation, which could make the U.S. Federal Reserve raise its interest rate sooner than expected. In case the rates go up, the value of existing bonds will go down, and loans for investments will become more expensive.

This time, the Canadian market showed the largest decline in 17 months, closing down at the lowest mark since the middle of September.

In case of Toronto, the S&P/TSX Composite fell by 1.7% to 15,334.81 points, marking the sixth daily drop in a row.