(Bloomberg) — Canadian stocks are enjoying a broad-based rally this year — the exact opposite of equities in the U.S., which have been carried by just a handful of names.
For every stock that has fallen on the benchmark in Toronto, two have advanced year-to-date, revealing a strong foundation beneath a rally in the S&P/TSX Composite Index. A version of the index that strips out market-cap bias has jumped 11% this year, outperforming its cap-weighted peer at home and the equal weight S&P 500 Index in the U.S.
“In Canada, you have had more opportunity within every sector to find names that have worked,” Mike Archibald, AGF Investments vice-president and portfolio manager, said.
In contrast, Archibald said the S&P 500 currently has become so dependent on a few stocks that it…
