Canadian Stocks Are a Bargain Compared to U.S. Shares Right Now

The gap in valuations between the S&P/TSX Composite Index and the S&P 500 Index is the biggest it’s been since 2008. The forward price-to-earnings ratio for the S&P 500 is 19.1 compared to just 17.2 for Canada’s lagging benchmark, according to Bloomberg data. The S&P/TSX may be gearing up for a better second half, with prices for gold, copper and oil on a roll this month. "There’s a good case to be made for the bout of serious underperformance in Canada to subside," says Robert Kavcic, senior economist at BMO Capital Markets.

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