Market Outlook - November 2024

Although, the S&P 500 gained 5.9% (total return) in November, making it the strongest monthly performance result since late 2023, it wasn’t enough to top the TSX gain of 6.4% (total return), which incidentally marks the third month in a row that the TSX has outperformed the S&P 500. The depth and breadth of performance in Canadian equities is proof that “value and quality” remains a highlight for the Canadian catch-up trade that is underway. We are encouraged by this development and look for the strength in Canadian stocks to continue well into 2025, despite all the “tariff talk” that’s consuming the news headlines. The expected rate cuts from both the Fed and the BoC, coupled with the consistency in corporate earnings, as Brian Belski put it “the best we’ve seen in over thirty years” there’s no reason why stock market returns going forward shouldn’t produce 10% – 15% compound annual returns. It’s all apart of the “normalization” process that’s occurring. Is this a goldilocks scenario? Perhaps, that’s too optimistic, but one thing is for sure, the fundamentals are pointing in the right direction.

If you would like to receive a full copy of our November 2024 market commentary, please email us at msbwealth@nbpcd.com