BMO chief investment strategist Brian Belski interprets recent market action as a “buy Canada trade,”
“While there has been some concern that recent market activity signals a more cautious and defensive rotation, we believe this is a misinterpretation of the recent outperformance of these more traditionally defensive sectors. Yes, Real Estate, Communication Services, and Utilities have been the top three performing sectors quarter to date.
Citi’s global economics team thinks the world economy is weak enough for a wholesale central bank easing cycle, “The global economy looks likely to register annual growth of 2.4% in 2024, only a modest slowdown from last year’s pace as H1 data have broadly surprised to the upside. In recent weeks, however, downside risks have intensified as data for the United States, euro area, and China have all fallen short of expectations. Further adding to these challenges are headwinds from ongoing geopolitical tensions.