Daily roundup of research and analysis from The Globe and Mail\u2019s market strategist Scott Barlow<\/p>\n
Scotiabank strategist Jean-Michel Gauthier thinks \u201cThe world will be buying Canada\u201d,<\/p>\n
\u201cThe World Will Be Buying Canada \u2013 FTSE Reform Boosting Canada Accepted \u2026 OUR TAKE: Positive. FTSE announced last Friday that Canada will now be separate from the U.S. when it calculates market cap cut-off points. However, liquidity concerns will see September additions to the All Cap Canada made in three tranches (35 per cent in Sep, 30 per cent in Dec 2025, and 35 per cent in Mar 2026). As a result, initial international inflows in Canada will be lower at $1.7-billion in September vs. our earlier estimate of $2.6-billion, but with a residual tailwind of $622-million in Dec 2025 and $708-million in Mar 2026\u201d<\/p>\n
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BMO senior economist Robert Kavcic continues to favour stocks over real estate,<\/p>\n
\u201cWe\u2019re now in a well-established bear market for Toronto condos, but an ongoing bull market for TSX stocks. The playing field isn\u2019t as massively tilted as it was two years ago, but this trade likely hasn\u2019t run its course yet. In a mid-2023 piece, we argued that stocks carried higher yield (better valuations), tax advantages, better liquidity, lower payment risk (dividends vs. rent), better payout growth and lower transaction costs. At the same time, we noted that cash flow dynamics, building supply and a likely downturn in rents were going to weigh on investment real estate. Clearly those trends are still playing out. While cash flow dynamics in real estate are \u2018less bad\u2019 now with mortgage rates and prices both down, they\u2019re still not compelling enough to draw investment in from other asset classes like equities and GoCs\u2014 real estate requires a risk premium (though many forgot that). Meantime, Canadian equity valuations are still relatively favourable, and earnings\/dividends should continue to expand if we indeed settle on a trade deal, and economic growth is allowed to perk back up later this year and through 2026\u201d<\/p>\n
\u201cBMO: equity bulls versus condo bears\u201d \u2013 (excerpt, chart) Bluesky<\/a><\/p>\n ***<\/p>\n CIBC analyst Stephanie Price sees value in domestic telecom stocks,<\/p>\n \u201cThe Canadian telecom sector is trading below U.S. peers, near trough levels. This report compares the Canadian telecom environment to the U.S. and Europe. We conclude that while the traditional premium to U.S. peers is not warranted in the current environment, we believe that Canadian telecoms should be trading roughly in line with U.S. peers. With the pricing environment stabilizing, we see valuation upside at current levels, although we expect it will take several years for the Canadian telecom customer base to completely reprice. Our top picks include Rogers, Quebecor and TELUS\u201d<\/p>\n ***<\/p>\n Bluesky post of the day: <\/b><\/p>\n Look imma be straight up with you, I think we are past Taylor Swift being able to step in here.<\/p>\n \u2014 SwiftOnSecurity (@swiftonsecurity.com<\/a>) July 3, 2025 at 7:22 PM<\/a><\/p><\/blockquote>\n\n