02:47:07 EDT Fri 17 May 2024
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FP looks through TSX's wall of worry, finds the upside

2024-01-02 08:48 ET - In the News

The Financial Post reports in its Saturday edition that a lot of the outlooks Canadians read are about stocks down south, many focused on whether the bulk of them will catch up to the Magnificent Seven megacaps that have pretty much taken over the market. The Post's Andy Holloway writes that few focus on Canadian stocks and you cannot blame them. There are no sexy Big Tech-type stocks here, and the ones the Toronto Stock Exchange has had in the past flamed out in spectacular fashion: Nortel, Valeant and BlackBerry pop to mind. However, even as the S&P/TSX Composite Index fades in importance on the global stage, much like the FTSE 100 in London, it still makes up a significant chunk of Canadian investing portfolios. FOMO, the fear of missing out, could add some spice should Toronto move up strongly. The Toronto Stock Exchange had a relatively restrained rebound in 2023 compared with other markets, so it has already factored in some potential recession risks. In addition, the TSX's attractive dividend yield also provides a performance buffer against potential challenges. Finally, conservative investors may rejoice that utilities and telcos will benefit from lower rates in 2024 since they carry a lot of debt.

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