The Toronto Stock Exchange’s (TSX) composite index has trailed U.S. stock indices for several years now, but that could change in 2025, according to BMO.
In the bank’s 13th annual forecast published this week, strategists at BMO predicted that the TSX is set to outperform the S&P 500, in Canadian dollar terms, by as much as 200 basis points next year.
“We think Canada offers value and cyclicality and increase in stock picking, especially relative to the U.S,” said Brian Belski, chief investment strategist at BMO, in an interview with BNN Bloomberg this week.
Belski and his team say the TSX is likely to finish 2025 at 28,500. That’s more than 3,500 points higher than where it is right now, which would represent a return of almost 15 per cent, not including dividends.
Belski is advising clients…
