The forecast for Canadian equities is brightening so quickly that it’s making me uncomfortable. As legendary Merrill Lynch strategist Bob Farrell was fond of saying, “When all the experts and forecasts agree — something else is going to happen.” Or maybe my skepticism is just typically Canadian.
BMO chief investment strategist Brian Belski spent much of 2023 chiding domestic investors for being overly pessimistic about their equity market. His confidence that the TSX would soon play catch-up with the surging S&P 500 took another step in a Tuesday research report when he suggested that the Bank of Canada rate cut would act as a ‘catapult’ for domestic stocks.
At BofA Securities, equity and quant strategist Ohsung Kwon reported that a preliminary update of his proprietary Canada Cycle Indicator (CCI) indicated the sixth straight month of improvement. The May recovery resulted from widening bond yield differentials versus the…
