The Globe and Mail reports in its Wednesday, Aug. 7, edition that BMO Capital Markets chief investment strategist Brian Belski believes that Canadian stocks stand to outperform, after trailing U.S. stocks by a wide margin. The Globe's David Berman writes that the Bank of Canada's recent interest-rate cuts should help the Big Six banks, which have been underperforming the S&P/TSX Composite Index this year amid concerns about credit health. Mr. Belski believes energy stocks stand to gain ground as fears of a global recession recede. He says, "Canada is ripe to rebound because of global misconceptions" about the economy. The Canada-as-haven trade was not a popular call in the first half of the year. By mid-July, the S&P 500 was up 18.8 per cent in 2024 after setting a series of record highs, or more than nine percentage points ahead of the S&P/TSX Composite Index. The lead, however, has since narrowed to six percentage points. This week's market turbulence offers further reason to expect that the home team may be able to mount a longer-term comeback, as hot markets turn cold.