RBC predicts big stock gains in 2021 - but it comes with a catch
RBC Capital Markets’ equity team has issued a 2021 target for the S&P 500 of 4,100, Darcy Keith writes. That would represent a healthy full-year gain of 9 per cent, and no doubt help propel other global market indexes, including Canada’s TSX, to extend their recent record highs. Still, it would translate into a more moderate return than 2020′s 16-per-cent gain, and RBC cautions that there’s likely to be a pullback in equity values before seeing those types of levels - and it may happen soon.
Sector-wise for the S&P 500, RBC is most bullish on financials, materials and energy - stocks which Canada’s stock market is full of. It believes investors should underweight REITs, consumer staples, and communication services.
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