Materials Stocks Set to Shine With Poloz Preparing Rate Hikes
- Materials stocks tend to outperform following rate increases
- Financials and energy have been laggards in tightening cycles
Materials to Shine as Poloz Eyes Rate Hikes
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If Governor Stephen Poloz does the expected and raises Canadian interest rates on Wednesday, it may be time to load up on potash, copper and gold stocks.
A review of equity performances following Bank of Canada tightening cycles over the past dozen years shows that materials stocks including Lundin Mining Corp. and Potash Corp. of Saskatchewan Inc. significantly outperform all other sectors of the Canadian market.