The S&P/TSX Composite Index is trading at recessionary valuation levels and that, combined with the extreme breadth of weakness and the dramatic underperformance of cyclical stocks, has BMO chief strategist Brian Belski expecting a strong rally in Canadian stocks.
Mr. Belski also emphasizes that the extreme breadth of the recent sell-off – the sheer number of companies hitting new 52-week lows – implies that a bounceback is probable. Economically-sensitive, cyclical market sectors have significantly underperformed defensive sectors, providing another sign the market is in oversold territory, according to BMO. Mr. Belski noted that the performance spread between cyclical sectors like consumer discretionary, industrials and technology and defensive industries like consumer staples and utilities is at extreme highs.
Australia Australia Latest News, Australia Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: globeandmail - 🏆 5. / 92 Read more »