The Toronto Stock Exchange (TSX) recently experienced a record drop of 30% below its record peak less than two weeks ago. Furthermore, the Canadian dollar weakened to a four-year low – all while a targeted stimulus and details on a public health response to the coronavirus outbreak remained unclear.
Is the coronavirus outbreak the sole reason for TSX’s record plunge? While investors’ concerns about policymakers’ ability to contain the economic impact of the virus is a major factor in the drop, it is not its sole reason. Nasdaq recently spoke with Sightline Wealth Management’s Senior Vice President and Investment Advisor Paul de Sousa for further insight.
“The conditions were ripe for something like this to occur,” de Sousa explained to the publication. “It was almost a perfect storm of overvaluation, plus this is now officially a pandemic.”
To read the entire Nasdaq article featuring Paul de Sousa, click here.
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