Rate cuts a ‘catapult’ for Canadian stocks, says BMO chief investment strategist

BMO chief investment strategist Brian Belski is even more bullish on Canadian equities after the first rate cut,

“Mid-Year Cuts Portend to a Catapult. With inflationary trends easing over the last several quarters, the Bank of Canada “proactively” entered the easing cycle on June 5. From our perspective, these more proactive easing cycles can be a strong positive catalyst for TSX performance, especially given the more tepid Canadian performance we have seen so far this year.

“OUR TAKE: Positive. We revisit renewable valuations following a series of positive news announcements in the sector, which has shifted sentiment for the group more positive and resulted in recent strong share price returns. Overall, the sector is seeing tailwinds from a more visible growth outlook driven by increasing power demand, the stabilization of interest rates, and improving supply chains.

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