BMO chief investment strategist Brian Belski continues to argue that Canada is the best contrarian investment call for global investors,
“Given the strong value position of the TSX relative to other global markets, we continue to believe Canada is well positioned for an extended period of NORMALIZATION that we expect to unfold over the coming years … While our initial target was not reached in 2023, we believe the rebound we expected for the Canadian stock market was only just delayed as investors digested the impact of higher rates on the Canadian consumer.
Mr. Belski is overweight domestic communications services, consumer discretionary, financials and information technology stocks.Goldman Sachs chief U.S. equity strategist David Kostin warned clients that markets are under-estimating the risk that the U.S. presidential election will not be decisive, “Election day this year will take place in 186 days . Our economists believe that ‘the polling margin in the ‘tipping point’ state that provides the potential 270th electoral vote is one of the most important election metrics to watch.’ They note that while Biden has drawn nearly even in national polling, he trails by 2 percentage points in the tipping-point state and by 4 pp when averaging all 7 swing states.
“The Global Wave strengthened for the fourth month in a row, partly driven by rising Industrial Confidence and Consumer Confidence in more than 50 per cent of countries around the world, as manufacturing PMIs set sail on a new cycle. In North America, the U.S. Regime Indicator progressed further within the ‘Recovery’ phase with the strongest MoM improvement in more than two years, while the Canada Cycle Indicator stepped into an upturn.