(Bloomberg) — Canada’s main stock index has surged almost 8% since its central bank began cutting interest rates in June, outperforming the S&P 500. Some strategists say that’s an opportunity — they’re urging investors to sell down or even get out of Canadian stocks altogether.
The world’s 10th largest economy is flashing some warning signs. Unemployment is rising and private sector output is flagging. The Bank of Canada has lowered rates three times so far, and economists increasingly view economic growth as so weak that the central bank will have to start cutting faster.
“We’ve crossed the Rubicon and we’re in for a hard landing,” James Thorne, chief market strategist at Wellington Altus, said in an interview.
The unemployment rate is 6.6% nationally and…
