Searching for Strength in Canada

Igor Manukhov - Jan 24, 2025

Only Technology and Financial Services (beyond banks) are winning in Canada right now.

After a brief pullback early this year, markets are surging to new highs. I expect 2025 to be a strong year overall. To further fine-tune portfolios, I like to review individual sectors. This process helps me identify what sectors are outperforming and which are lagging.

 

The colour coding on the chart below is as follows:

 

  • Blue and aqua bars: Indicate outperformance relative to the TSX
  • Light purple and purple bars: Indicate underperformance relative to the TSX
  • Orange bars: Indicate neutral performance relative to the TSX

 

Sector symbols are:

 

  • XIT – Technology
  • SPTCD – Consumer Discretionary
  • XEG – Energy
  • XFN – Financial
  • ZIN – Industrial
  • XMA – Material
  • SPTHC – Health Care
  • XST – Consumer Staples
  • XUT – Utilities
  • XRE – Real Estate

 

This table allows me to quickly assess the relative performance of all sectors to determine areas of opportunity. As you can see, all sectors other than Technology and Financials are currently underperforming TSX.

 

Besides Canadian sectors, I track a variety of areas — countries, asset classes, investment styles, and more — in a similar format to quickly identify emerging opportunities.