BofA Favors Canada Stocks With Big Discount to ‘Frothy’ S&P 500
- Canadian index hasn’t been this cheap since tech bubble: Kwon
- Recovery in oil, financial shares have led TSX to 16% gain
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Investors seeking to capitalize on economic reopening should look north of the border for a cheaper alternative to the “frothy” S&P 500, according to strategists at Bank of America Corp.
Canada’s S&P/TSX Composite Index has plenty of exposure to commodities and cyclical companies, while also trading at its steepest discount to the U.S. benchmark since the tech bubble more than 20 years ago, equity strategists led by Ohsung Kwon told clients in a note.