TORONTO – Canada’s main stock market is expected to recover in 2019 from its worst performance in a decade that saw the exchange lose 15 per cent amid extreme volatility, plunging oil prices and geopolitical uncertainty, say markets experts. “Our outlook for 2019 is one of cautious optimism,” says Candice Bangsund, portfolio manager for Fiera Capital. She expects equities will outperform bonds as global growth remains relatively healthy with a recession unlikely before late 2020. Markets are in the later stages of the economic cycle marked by the longest bull run in history. That’s typically a time when investors move from growth-oriented stocks to defensive names in sectors such as financials, materials, industrials and energy. “This will be inherently positive for the TSX,” Bangsund said, predicting low double-digit returns and an even stronger performance for emerging markets. Bangsund doesn’t see much upside for U.S. markets. “This is where we see an opportunity to catch up but it’s not going to be a long-term trade. By the back half of 2019 we’re going to have to be taking profits and positioning for 2020 a little bit more of a cautious outlook.” The S&P/TSX composite index was down 15 per cent […]
