Investors Bet Canadian Stocks Have Room to Rally on Value Play
- Financials, energy companies comprise half of benchmark index
- S&P TSX index trading near the lowest level ever to S&P 500
Canadian stocks are below their five-year average valuation.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Canada’s stock market rallied 22% in 2021, but investors are betting on more gains as they shift from volatile growth stocks.
The S&P/TSX Composite Index is trading near its cheapest level on record relative to the S&P 500 Index after getting caught up in the global stock rout. That’s emerging as a catalyst for gains, especially since looming interest-rate hikes and surging commodity prices benefit the value-heavy national equity benchmark.