TORONTO (Reuters) – Investors in Canada are shunning interest-rate sensitive stocks, seeking inflation protection and betting on a steeper yield curve as the Bank of Canada leads global central banks in shifting to a more hawkish stance.
Canada’s central bank on Wednesday signaled it could hike interest rates as soon as next year and cut the pace of bond purchases, becoming one of the first major central banks to reduce stimulus.
Investors say they have been adjusting portfolios for some time to prepare for a higher rates outlook, but the BoC’s move has reinforced the focus on such an outcome. Read more…..
Chart of the Day
“If you can’t imagine the economy getting much, much stronger than this, the problem is all in your imagination,” the “Mad Money” host said.