FP says BMO's Belski sees Boyd, AC and others outperforming 2018-03-02 09:03 ET - In the News
See In the News (C-BYD) Boyd Group Income Fund
The Financial Post reports in its Friday, March 2, edition that with inflation looking like it is starting to creep back into the market, Canadian stocks appear ready to stage a comeback. The Post's Jonathan Ratner writes that BMO analyst Brian Belski notes that the TSX typically outperforms during periods of structurally rising inflation and interest rates. Structural periods of rising rates typically see inflation rising faster than yields, and the bond market and the Fed are "behind the curve," which hampers economic growth. In this scenario, Mr. Belski sees resource equities outperforming, while consumer-related stocks underperform. In a rising rate scenario, Mr. Belski he favours more cyclical sectors and industries in the TSX, particularly technology, consumer discretionary and industrials. He notes that energy and financials usually outperform slightly, while materials underperform significantly. Outside of the Big Three sectors in Canada (energy, materials and financials), BMO highlights its favourite names. In consumer discretionary, Canadian Tire, Roots, Canada Goose Holdings and Restaurant Brands International, are rated outperform. Among industrials, the BMO's favourite names are Air Canada, Boyd Group Income Fund, CAE, Canadian National Railway and Finning International.