TSX Joins Global Liquidation, But Here’s Where BMO’s Belski Thinks You Should Park Your Funds

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Meanwhile, financial stocks have been hit by reports that several major banks have helped launder allegedly illegal funds since 2000, even though supervisory concerns had been filed about the transactions.

The S&P banking sub-index lost 4.5% at one point before resuming losses.

“We’ve had a lot of negative news feeds, investors are pretty nervous, it’s part electoral, part COVID, part banking business that hit this weekend,” said Brian Belski, director of investments at BMO Capital Markets, by phone from Minneapolis. “It’s a reactionary market and it’s a market full of guesswork and negativity, so I’m not surprised that we see these types of moves back and forth, especially in a momentum driven market.

Nikola Corp., an electric truck maker, sank 18.2% after founder Trevor Milton stepped down as executive chairman over allegations of nepotism and fraud. General Motors Co, which said it would take an 11% stake in Nikola, lost 5.7% at one point before recovering.

Investors in the larger market are expected to hang on despite the volatility, Belski said.

“The market momentum for technology and communications and consumer discretionary services should be bought off. Financial and communications services are the best places in Canada. ”

A European travel and leisure stock index recorded its worst two-day drop since April, as holders of airline, travel and hotel shares reacted to the threat of a second cycle of lockdown in the region .

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