Bank of America Says Buy Canadian Stocks Amid Commodity Boom
- TSX is at its steepest discount to S&P 500 since tech bubble
- Canadian market earnings set to grow faster than the S&P 500
The commodity boom is pushing Canada’s stock market to the forefront as investors seek safe havens amid escalating geopolitical risks, according to strategists at Bank of America Corp.
Photographer: Pawel Dwulit/Bloomberg
The commodity boom is pushing Canada’s stock market to the forefront as investors seek safe havens amid escalating geopolitical risks, according to strategists at Bank of America Corp.
The war in Ukraine has put a premium on resources that Canada’s stock market has in abundance, analysts led by Savita Subramanian said, recommending investors buy into the market. “LatAm and other emerging markets are seen as key beneficiaries of the commodity cycle, but Canada offers political stability on top of commodity exposure,” the analysts said in a report Friday entitled “A New Regime: Buy Canada.”