The Bottom Line
Excluding the possibility of another “out of the blue” negative shock, equity markets are poised to move significantly higher between now and May next year. Recent weakness in equity markets has provided an opportunity to accumulate favoured equities and ETFs. Stocks market equity indices with favourable seasonality at this time of year include Canada, U.S.A., China, Germany and Japan. Sectors with favourable seasonality at this time of year include technology, consumer discretionary, materials, industrials, lumber, metals & mining and Canadian Financial Services.