Value Hunting in Canada

For those value hunting out there, there is better breadth up here in Canada as according to Frances Horodeslki, 118 of the 226 components (52 per cent) are beating the TSX this year compared to only 25 per cent in the U.S. High interest rates have also hit certain segments like the banks, utilities and telcos that dominate the S&P TSX at a time that we believe rates will be coming down faster than the U.S.

For example, equal weight Canadian banks (as represented by the ZEB ETF) are up only 9.4 per cent over the past 12-months (to the end of June), the Utilities sector (as represented by the XUT ETF) is down 6.2 per cent while telecommunication stocks such as Rogers, Telus and Bell have been hammered selling down 15.6 per cent, 17.9 per cent and 23.3 per cent, respectively.