CNW Group reports that 60% of managers are actually bullish toward Canadian stocks, and about 75% of them expect gains in the Canadian energy sector. The stability of the U.S. housing market is the indicator that managers are using as a clue that financial markets are recovering.
Overall, Canadian managers are speculating on energy, materials and the financial sector as the sectors with the most potential. Canadian markets had the worst-performing asset class at the end of 2008 besides emerging markets, so the renewed faith in over 60% of managers is fulfilling.
But is it really so? Not everyone is so certain: one forecaster offered a grim employment outlook for this year, saying the economy “fell off a cliff” in the first quarter, reports The Canadian Press. The forecaster predicted that unemployment would peak at 9.5% by the middle of 2010.
With all this conflicting data and opinions, what’s your best bet? Mind the trend lines and leave your emotions out of it.
- iShares MSCI Canada Index (EWC): down 2.1% year-to-date; up 21.7% for one month
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.