Bloodbath on Bay Street

(Monday  January 21, 2008) After losing nearly 1,000 points last week, most analysts expected the Canadian market to take a breather today, with markets south of the border closed for Martin Luther King Day. Instead, Canadian stocks on the TSX plummeted more than 600 points on Monday, following steep declines on both the Asian & European markets.

All sectors of the market were hit today, including resource, financial, consumer and tech stocks. For those currently invested in the market, the short-term outlook is grim: Tuesday morning when the US markets re-open, there will likely be another huge sell-off.

At market close, the S&P/TSX Composite index was down 605 points at 12,132, a drop of nearly 5% and a level not seen since November 1997. While not officially a "Bear Market", that might change before the week is done.

The Canadian dollar closed at $0.9665 US, while the price of oil fell to $88.63/bbl, a drop of nearly $2/bbl.

For those who aren't clear on why the markets are moving, please view the video How The Markets Really Work

Jim Sparrow sells Calgary Real Estate with Keller Williams Platinum Realty & specializes in South Calgary estate and luxury homes. Visit our website at Calgary Luxury Real Estate or contact me directly at 403.703.2404

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