The governments inability to contain capital market issues, accentuated the spiral in September, sending share prices tumbling worldwide for the quarter. Government Treasury offices, as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion, as evidence mounted quickly of its spread into the “real” economy. Falling prices for energy, metal and grains led commodity share prices to sharp corrections during September. On the energy front, WTI crude dropped from $145/bbl in July to close just above $100 at the end of September.
During the third quarter of 2008, the Canadian equity market slid into bear-market territory, declining 18.76%, while the S&P 500 fell 8.88%. Over the first half of the quarter, some of the negative forces faced by Canadian equities included weaker commodity prices, a stronger U.S. Dollar, slowing global growth (particularly in China), and a collapse in inflation expectations.
This September was among the worst for Canadian equities in the last ten years. The S&P/TSX Composite Index fell 14.6%, as energy and materials stocks came under pressure as the U.S. credit crisis became global and companies outside of financial services began to face the reality of a significant slowdown in the global economy. As we wrote in our second quarter report, the discrepancy between the Canadian equity market and those of other developed markets had to close: as it turned out, our market dropped to fall in line with others.
Over the past couple of months we have outlined some of the negative forces faced by Canadian equities, including weaker commodity prices, a stronger U.S. Dollar, slowing global growth (particularly in China), and a collapse in inflation expectations. These forces had sent the TSX index lower, but they paled in comparison to the havoc unleashed this past month as the financial system itself came under severe strain, resulting in the demise/forced sale of Lehman Brothers, Merrill Lynch, Fannie Mae, Freddie Mac, AIG, Washington Mutual and Wachovia.
Falling prices for energy, metal and grains led commodity share prices tumbling for the month. The governments’ inabilities to contain their capital market issues, accentuated the spiral in September and into October. Government Treasury offices as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion as evidence mounted quickly of its spread into the real economy. On the energy front, WTI crude dropped $15/bbl to close above $100 at the end of September. Nat Gas dropped 6.3% to close at $7.44/Gj.
Falling prices for energy, metal and grains led commodity share prices tumbling for the month. The governments’ inabilities to contain their capital market issues, accentuated the spiral in September and into October. Government Treasury offices as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion as evidence mounted quickly of its spread into the real economy. On the energy front, WTI crude dropped $15/bbl to close above $100 at the end of September. Nat Gas dropped 6.3% to close at $7.44/Gj.
NORM LAMARCHE - Q3 2008 COMMENTARY
The governments inability to contain capital market issues, accentuated the spiral in September, sending share prices tumbling worldwide for the quarter. Government Treasury offices, as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion, as evidence mounted quickly of its spread into the “real” economy. Falling prices for energy, metal and grains led commodity share prices to sharp corrections during September. On the energy front, WTI crude dropped from $145/bbl in July to close just above $100 at the end of September.
FRANK MERSCH - Q3 2008 COMMENTARY
During the third quarter of 2008, the Canadian equity market slid into bear-market territory, declining 18.76%, while the S&P 500 fell 8.88%. Over the first half of the quarter, some of the negative forces faced by Canadian equities included weaker commodity prices, a stronger U.S. Dollar, slowing global growth (particularly in China), and a collapse in inflation expectations.
ERIC DZUBA Q3 2008 COMMENTARY
This September was among the worst for Canadian equities in the last ten years. The S&P/TSX Composite Index fell 14.6%, as energy and materials stocks came under pressure as the U.S. credit crisis became global and companies outside of financial services began to face the reality of a significant slowdown in the global economy. As we wrote in our second quarter report, the discrepancy between the Canadian equity market and those of other developed markets had to close: as it turned out, our market dropped to fall in line with others.
Front Street Canadian Hedge Monthly Commentary
Over the past couple of months we have outlined some of the negative forces faced by Canadian equities, including weaker commodity prices, a stronger U.S. Dollar, slowing global growth (particularly in China), and a collapse in inflation expectations. These forces had sent the TSX index lower, but they paled in comparison to the havoc unleashed this past month as the financial system itself came under severe strain, resulting in the demise/forced sale of Lehman Brothers, Merrill Lynch, Fannie Mae, Freddie Mac, AIG, Washington Mutual and Wachovia.
Front Street Resource Hedge Fund - Monthly Commentary
Falling prices for energy, metal and grains led commodity share prices tumbling for the month. The governments’ inabilities to contain their capital market issues, accentuated the spiral in September and into October. Government Treasury offices as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion as evidence mounted quickly of its spread into the real economy. On the energy front, WTI crude dropped $15/bbl to close above $100 at the end of September. Nat Gas dropped 6.3% to close at $7.44/Gj.
Front Street Energy Venture Fund Ltd. - Monthly Commentary
Falling prices for energy, metal and grains led commodity share prices tumbling for the month. The governments’ inabilities to contain their capital market issues, accentuated the spiral in September and into October. Government Treasury offices as well as Central Banks worldwide, were forced to take greater remedial action to stem the contagion as evidence mounted quickly of its spread into the real economy. On the energy front, WTI crude dropped $15/bbl to close above $100 at the end of September. Nat Gas dropped 6.3% to close at $7.44/Gj.