Forecasts of improving global economic growth, moderating inflation, lower interest rates, and positive year-over-year earnings growth all provide a positive backdrop for the stock market. But are these positive expectations already priced into equities?
To break down where the economy may be headed, what type of returns investors may see, earnings expectations, and how investors may want to position their portfolios, The Globe and Mail recently spoke with Stu Morrow, chief investment strategist at Morgan Stanley Wealth Management Canada.
Before we discuss your portfolio recommendations, I want to set the stage for our readers with your base case view on the Canadian economy.
Our base case for Canada is a soft landing, so averting a recession, but we have noted the risks are skewed to the downside for the Canadian economy in terms of inflation staying higher than expected, therefore, not giving the Bank of Canada the ability to lower…
