The Financial Post reports in its Wednesday edition that Luc Vallee, chief strategist at Laurentian Bank Securities, does not see the Canadian market underperforming despite a looming trade war. A Bloomberg dispatch to the Post says that in fact, Mr. Vallee sees the S&P/TSX doing better than the S&P 500 index in 2018, forecasting a total gain of 11 per cent for the Canadian benchmark and 5 per cent for U.S. stocks. The S&P/TSX has risen less than 1 per cent this year, trailing the 3-per-cent U.S. gain. "A lot of companies on the U.S. stock market are exposed to trade as well, much more than the economy itself," Mr. Vallee said. A stronger U.S. dollar will take a bite out of those companies' earnings, and U.S. stocks are also trading at higher multiples than their Canadian counterparts. Canadian investors "are going to have to be tolerant of a lot of uncertainty, particularly as it relates to the trade negotiations," but the market still looks reasonably valued and earnings expectations continue to accelerate, said Candice Bangsund at Fiera Capital Corp. She sees the S&P/TSX hitting 17,300 by year-end as oil prices rise to $72 (U.S.) a barrel. That implies a 5.8-per-cent gain for Canadian stocks.