Canada’s main stock index is limping behind the S&P 500’s blistering performance so far in 2024. BMO Capital Markets chief investment strategist Brian Belski says that could change in the second half of the year.
The S&P 500 (^GSPC) and the S&P/TSX Composite index (^GSPTSE) hit all-time highs in May as investors anticipated more dovish policy moves from central banks. Now, Belski says the TSX is “poised to reverse course and begin to overtake its neighbour to the south for the remainder of 2024.”
“We believe that a significant catchup trade will eventually transpire in Canada,” he wrote in a note to clients this week. “To be more specific, we believe the upside in Canadian equities will be driven by the strong relative value position, improving fundamental sentiment, returning foreign flows, and the overall broadening of equity performance from the U.S. mega-caps.”
BMO Capital Markets…
