Markets. YOMO (Year of Missing Out) is a great description of the Toronto housing market, but we are also starting to get this in equity markets. Stocks are moving, but simply because everyone is afraid to Sell as you don’t want to miss out, and valuations are starting to get stretched, and no one wants to get out of equities because Donald Trump is going to solve all the world’s problems. We have seen this great interest rate increase, which is usually a sign of good times, but investors are already paying for the tax that is going to get cut, and we are already paying for the regulations that are going to get cut. If people’s expectations are not filled, they tend to get disappointed, and the next response is to Sell.
Sr. Portfolio & Managing Director, Vestcap Investment Management