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FP says Ind Alliance's Thib placing bets on Canada

2017-08-28 08:00 ET - In the News

The Financial Post reports in its Saturday, Aug. 26, edition that the disparity between underperforming Canadian stocks and their shining U.S. peers never stays this wide for long, which is why the manager of more than $600-million at IA Clarington Investments' Industrial Alliance Insurance & Financial Services is significantly overweight Canada. The Post's Kristine Owram writes that manager Terry Thib says: "You're just seeing such a huge divergence in both performance and valuation, and I do feel there's an opportunity to close that gap a little bit. I think it's overdone. This environment is a layup for Canada." Canada's S&P/TSX Composite Index is down 1.2 per cent year-to-date, while the S&P 500 Index is up 9 per cent, leading to the widest valuation gap since 2008. Mr. Thib says less than 15 per cent of his investments are in U.S. securities, with the rest in Canada. His U.S. investment allocation has trended lower this year as he believes equities are in a "classic later stage," where cyclicals rally and investors reallocate capital from growth to value stocks -- moves that tend to be good for Canada. Mr. Thib believes Canadian stocks are "extremely cheap."

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