RE:If you like analyst John Zechner than you will like Doman A ‘buy Canada trade’ has begun, says BMO’S chief investment strategist Scott BarlowMarket Strategist
Published 5 hours ago
For Subscribers “While there has been some concern that recent market activity signals a more cautious and defensive rotation, we believe this is a misinterpretation of the recent outperformance of these more traditionally defensive sectors. Yes,
Real Estate, Communication Services, and Utilities have been
the top three performing sectors quarter to date.
However, our view remains resolute, this is a catch-up trade for these “oversold” higher-yielding sectors, which are rebounding in tandem with moderating longer-term interest rates. Furthermore, market strength has been relatively broad, with almost all sectors posting positive returns quarter to date. Our factor profile models have also exhibited broad-based gains in July. …
From our perspective, this is a ‘Buy Canada’ trade that is exhibiting improvement in overall equity market flows with a tilt toward oversold and interest sensitive areas, NOT a defensive rebalance https://www.theglobeandmail.com/investing/markets/inside-the-market/article-a-buy-canada-trade-has-begun-says-bmos-chief-investment-strategist/