World markets traded lower in several sessions. Is this quarter a wash-out?
The Toronto Stock Index is no exception: it is trading at below both the 50-day and 200-day average. In the chart, it can be seen the TSX is below 2011's starting value.
The index peaked in the March-April period, and heads lower still.
There remains no reason for the Toronto market to flatten or rise, other than cheap valuation, on a relative basis.
A word of caution: the lower valuation is in comparison to a March/April environment where American quantitative easing distorted the ease of money and credits.
Further caution is warrented when trading with high volatility sectors, notably gold, oil and gas, and other resource-based stocks on the Toronto markets.
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