Market Factors: A shrinking ‘wall of worry’ should have investors concerned. Plus, how TSX forecasts for 2024 fared

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Plus, we track how accurate market forecasters were for the TSX this year

In this edition of Market Factors, we tackle a plausible argument that investor sentiment is overheated to the bullish side and the rally is overdone. It’s Outlook 2025 forecast season and Darcy Keith reviews the accuracy of prognostications last year . There’s more bad news as an expert opinion disproves the geological validity of cartoons. We also look ahead to data releases on the calendar this week.

“I … prefer a bull market that climbs a wall of worry. Once everybody is in the pool I get a little nervous.” What actually transpired? The Canadian benchmark far surpassed those forecasts, reaching a record high so far in 2024 of 25,706.50. Few saw those types of gains coming until 2025.And many of those strategists did presciently call for a series of rate cuts by the Bank of Canada and highlighted dividend stocks as an area of the market that would benefit.

 

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