Canada is not headed for a recession

Jobs, wages, inflation – carefully selected trends - are blending into a fundamentally bright future for investors in 2019

Andrew Willis 11 February, 2019 | 6:00PM

Canada may be headed into a maturing market cycle, but it’s not headed for a recession.

“People are looking for a recession because we haven’t had one yet,” says Brian Belski, Chief Investment Strategist at BMO Capital Markets. But Belski says the fears may be baseless. “This is the most emotion-driven market I’ve seen in my career,” says Belski, adding that attention, due diligence and patience in the market are at an all-time low.

Volatility has returned, trade concerns with China are still lingering and corporate earnings will have a hard time keeping up with last year. But these trends didn’t result in a deterioration in underlying fundamentals, which remain quite healthy, and should drive stocks higher in 2019.

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Andrew Willis

Andrew Willis  Andrew Willis is a content editor for Morningstar.ca.

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