Image source: Getty Images
Predicting what Canadian stocks will do in 2025 is about as easy as predicting the final score and outcome of the Super Bowl. You can weigh various factors and determine the odds. Yet, the final result could be completely different to what you could even imagine is possible.
Predicting what stocks will do in the near term is very tough
Thousands of factors and variables can affect the stock market. In the short term (like weeks and months), the performance of the stock market is largely out of an investor’s control. The broader market can swing up and down for seemingly irrelevant or uncorrelated reasons.
Fortunately, in the long run, stocks can be a little more predictable. On average, the Canadian index delivers a 6–7% return. U.S. indices average higher at 8–9%.
Over the long term, Canadian stocks tend to follow the trajectory of their per share earnings/cash flow. It is an investor’s job to…
