2023
Why Canadian Stocks are Due for a Catch-Up & Other 2023 Market Musings
Better days are ahead for Canadian stocks.
So far in 2023, Canadian stocks are up, but they are lagging behind both US and International equities.
That should change soon, according to Kevin McSweeney, Senior VP and Portfolio Manager at CI Global Asset Management.
“I think Canada is absolutely undervalued, and is very much due for a catch up versus other markets,” Kevin said on the podcast.
Giddy up.
On the latest episode of the Wealth Wisdom Podcast, Kevin provides insight on a number of topics including why Canadian stocks are undervalued, what sectors he and his team are bullish on, the outlook for inflation, interest rates and more.
This podcast provides some fantastic insight into what Kevin, and other portfolio managers who are working behind the scenes on your investments, are seeing in terms of value within your portfolio right now.
You can listen to the podcast through your preferred streaming platform.
You can also watch the video podcast in full on YouTube.
Here are some highlights from the episode.
Bullish about Canada
We’re often asked by clients, where are the best investing opportunities right now.
Well, according to Kevin, some of the best investing opportunities that he and his teams are currently seeing are right in our own backyard.
In this clip, Kevin talks about why Canadian companies are undervalued, and compares us to our counterparts down in the United States.
Why Canadian banks are undervalued
To say that Canadian companies are undervalued is a blanket statement. After all, there are many different sectors with varying outlooks.
One sector that is heavily undervalued right now, according to Kevin, is Canadian banks.
Kevin touches on why Canadian banks are trading at such great valuations in this clip here.
Crypto, weed and your brother-in-law
Have you ever received questionable advice from your in-laws?
In this clip, Kevin breaks down what he means by the “Brother In-Law Syndrome.” In fairness, that phrase could take on a multitude of meanings…
What’s next for interest rates?
Just six months ago, a prevalent prediction from analysts was that interest rates may drop by the middle of 2023.
So much for that.
We saw both the Bank of Canada and the Federal Reserve raise interest rates again in July, and more could still potentially be on the way.
So, what is the current outlook for interest rates, and why is the United States more likely to raise rates than Canada? Kevin touches on that here.
The issue of extrapolation
Have you fallen for the extrapolation trap?
In this clip, I talk about the issue of twisting long-term narratives based on short-term events.
Next Guest
Many thanks for Kevin for taking some time out of his vacation to hop on the podcast.
This was a little longer than our usual episodes because Kevin covered a ton of noteworthy topics. If you have any questions or comments about anything we discussed, please feel free to reach out.
On our next episode will dive into some of the highlights of an emerging framework for ultra-productive business owners, called the Entrepreneurial Operating System.
We’ll have an EOS coach come on the program to tell you what exactly EOS is, why it has grown in popularity, and how it helps business owners reach their peak productivity.
Until Next Time,
Assante Sana
John Lawson (CFP®, CIM, FEA), Senior Wealth Advisor
Sana Family Office | Assante Capital Management Ltd.
Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. This material is provided for general information only and is subject to change without notice. Every effort has been made to compile this information from reliable sources, however no warranty can be made as to its accuracy or completeness. Before acting on the above, please be sure to see a professional advisor for individual financial advice, based on your personal circumstances. The opinions expressed here are not necessarily those of Assante Capital Management.
