What’s pushing markets down? Since October, and especially this past week, fight between earnings and interest rates and the consequent uncertainty. Optimism on earnings side from analysts, giving way to pessimism that earnings will slow down plus rising interest rates. Earnings expectations too rosy going into 2019. Yields are down from their highs, but Fed is conveying rising rates both in US and Canada, affecting equity prices. All this is taking the bloom off equity markets.

Nobody likes a prolonged sell-off. Money managers, in reaction to clients calling them during this correction, are selling the baby with the bathwater. Today, oil went down 7%--uncommon--and there was a lot of negativity about Boeing, which is a barometer about China/US trade tariffs. Boeing called off a conference call, and investors want information about their companies. This selling stampede will continue and it's indiscriminate, then a rotation in the value names. The next few weeks will be telling. He has sold off and now holds up to 45-70% cash in some accounts. Investors are running to defence stocks. If the S&P can bounce off its 2018 lows from January and October, then that's positive.

Oil and Natural Gas – An ETF for gas and light oil. There is a split between traditional oil production and natural gas. ZJN-T covers this in Canada. XEG-T is the broad Canadian energy market. ZEO-T is equal weight. There is no split between heavy and light oil via ETF.

Bonds. You have fixed coupon bonds and floating rate notes where the coupon adjusts so the price does not. Floating Rate and Reset Preferred bonds are better in a rising rate environment.