The Bay Street sign is pictured in the heart of the financial district as people walk by in Toronto.MARK BLINCH/The Globe and Mail
Brian Belski hates Mondays almost as much as Garfield does.
The chief investment strategist at BMO Capital Markets believes markets will hit bottom on Monday, which stands out as the worst day of the week in terms of historical price performance. In fact, Monday is the only negative day of the week on average since 1928 and has the highest percentage of down days.
Mr. Belski is adamant that U.S. stocks remain in a secular bull market, but is "admittedly disappointed that calmer heads have yet to prevail." The S&P 500 Index officially entered 10 per cent correction territory on Thursday -- incidentally, the second-worst day of the week historically.
Not only that. This is also the fastest 10-per-cent correction from a price peak in the S&P 500 since 1950, he says.
So here's how Mr. Belski thinks the next couple of days will play out: there will be "additional fear and negative momentum" today, pushing investors into an even darker mood just in time for the weekend, when they have more time to sit around and worry. Monday, with its history of misery, therefore provides the best chance for a low to take shape.
His advice for investors? "Avoid timing the market and stay the course."