HALISTER1: ’Big Bounce’ Coming for Canadian Equities, BMO Says

’Big Bounce’ Coming for Canadian Equities, BMO Says

(Bloomberg) -- A "big bounce" is coming for Canadian stocks once calmer heads prevail, BMO chief investment strategist Brian Belski writes in a note.
  • Says the "negative-first" mantra of Canadian-focused investors means a higher loonie and rising bond yields are scaring investors when they should be boosting confidence in the economy
    • In years when the CAD has appreciated from Dec. 31 to the end of August, the TSX rallies on average over the next six months; the same is true of rising 10-year government bond yields
  • Upside should be led by banks and perhaps energy
  • NOTE: Sept. 13, RBC Pushes Back 16,300 S&P/TSX Target to Year-End 2018 from 2017
To contact the reporter on this story: Kristine Owram in Toronto at kowram@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Morwenna Coniam

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Brian Belski (Bank of Montreal)

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