Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Scotiabank strategist Hugo Ste-Marie identified a junk rally in Canadian markets,
“Canadian equities – a quant ‘junk’ rally under way. In case you missed it, our latest quant note pointed out that a junk rally was under way, with low Quality/low Growth stocks easily outperforming their respective top Quality/top Growth peers over the past few months. That makes it harder for us and clients to beat the benchmark. In fact, when we look at our Canadian large cap model portfolio, the recent underperformance does not come from sector allocation but rather from stock selection almost exclusively. While the percentage of stocks outperforming the TSX this year seems healthy at 47 per cent, near the historical average of 50 per cent, it goes down fast (34 per cent) if you take out gold equities, making it much more challenging for…
