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Globe says Belski remains a TSX bull

2018-10-23 08:08 ET - In the News

The Globe and Mail reports in its Tuesday edition that it has been a volatile year for Canadian equity investors. The Globe's Jennifer Dowty writes that the index lost further ground Monday and has now nearly made a return trip back to the lows set in February. Brian Belski, the chief investment strategist at BMO Nesbitt Burns, expects more volatility in the weeks ahead, but the next major move, he thinks, will be higher, driven in part by strong corporate earnings. Despite concerns surrounding trade tensions and rising interest rates, Mr. Belski says Canadian fundamentals are the strongest they have been in several years. He highlights that seasonal trends also provide encouragement: When the S&P/TSX Composite, now 15,412, has reported muted returns of between negative 5 per cent and positive 5 per cent during the first three quarters of the year. The S&P/TSX remains in negative territory year-to-date, remaining well below Mr. Belski's base case year-end prediction of 17,600. "I think we are going to see earnings come out in Canada that are going to be very good," he says. "I think you are going to have a rush of assets, from an equity perspective, coming back into Canada over the next three to six months."

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