Canadian Stocks Not Looking Good: Strategist

Canadian stocks are not a good bet according to the Chief Canada Strategist for BlackRock Inc.

BlackRock is the largest money manager on earth.

The negative perception of Canadian stocks is based primarily on the low price of oil – and the expectation the price will remain low.

Canada’s housing market is also considered a problem. As strategist Kurt Reiman told Bloomberg, “the S&P/TSX Composite Index is too dependent on banks exposed to an ‘”overheated housing market.”‘

Reiman also pointed out that the global stock rally has been based heavily upon healthcare and technology companies, which have “virtually no representation,” on the Toronto Stock Exchange.

Bloomberg asked Reiman if there were any Canadian sectors he would invest in. His response?

“No, there’s nothing.”

While the negative outlook is not shared by all, it should be noted that the TSX is up only 2.4% in 2017, while the S&P 500 in the United States has risen 6.6% so far this year.

Spencer Fernando

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