TSX Up 74 Points, Hits 2 Month High With All Sectors Positive -- Miners, Healthcare, Lead
The TSX is up 74 points this morning with all sectors in the green. Miners and healthcare are the biggest gainers so far, up 1.32% and 1.04%, respectively.
The loonie is down to a near 4-month low after the US Govt slapped Canadian lumber with a 20% tax.
The Financial Post newspaper is citing Matthew Barasch, an equity strategist at RBC Capital Markets, who highlighted seven factors that suggest a higher exposure to Canadian stocks is warranted.
The FP said: "First up is valuation, with the TSX currently trading at a discount of roughly 1.5 multiple points to the S&P 500, based on forward earnings per share estimates. That puts Canadian stocks in the bottom quartile of relative forward P/E multiples for the past 20 years." The FP added: "Next, Barasch highlighted earnings growth, which he expects will come in above 20% in 2017." The FP noted Canadian stocks have generated a total return of more than 17% in the past 12 months.
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