TORONTO - Canada's main stock index is set to edge higher in 2024 and then notch a record high next year as the expected start of interest rate cuts by central banks bolsters the high-dividend paying stocks that make up much of the market, a Reuters poll found.
The Canadian economy could particularly benefit from lower interest rates after households borrowed heavily during the COVID-19 pandemic. Economists in a separate Reuters poll expected the Bank of Canada to begin cutting rates from a 22-year high of 5.00% in June or later and to reduce borrowing costs by 100 basis points in total by the end of 2024.
"The growth and inflation backdrops remain favourable, but of course that won't preclude periods of volatility and corrections, which are common after strong market rallies like the one we had over the past three months," said Angelo Kourkafas, a senior investment strategist at Edward Jones.Seven of 12 analysts who answered a separate question said a correction is likely or highly likely over the coming three months.
Given their solid performances and healthy growth prospects, I am bullish on these two TSX stocks. The post After Earnings, I’m Bullish on These 2 TSX Stocks appeared first on The Motley Fool Canada.
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