Written by Christopher Liew, CFA at The Motley Fool Canada
Economists and market observers expect a second rate cut this month and probably a few more until the end of 2024. Easing, if not moderating, inflation is the cue for the Bank of Canada to lower interest rates. The TSX hardly moved during the first cut in early June, although the index has risen 5.45% from a month ago.
Canada’s primary stock market is up 8.26% year to date, including a record high of 22,995.40 on July 16. While a rotation from tech stocks is currently happening, the sector’s growth prospects remain high due to the AI hype and the rate-cutting cycle.
One stock that should benefit from the central bank’s rate reduction campaign is Evertz Technologies (TSX:ET). The $974.9 million global technology operating in the communication equipment industry is in a strong position with potential upside in the near future.
Industry leader
Evertz…
