Investors should buy Canadian banks and insurers as companies such as Manulife Financial Corp. benefit from beefed up wealth-management activity and a switch from bonds to other assets, according to BMO Capital Markets.
Oppenheimer & Co. Chief Investment Strategist Brian Belski cut his 2010 and 2011 estimates for the Standard & Poor’s 500 Index, becoming at least the third strategist in two weeks to reduce his outlook on U.S. stocks.
Stocks would suffer after an initial jump should the Federal Reserve decide to extend economic stimulus beyond the June expiration of its current quantitative easing program, Oppenheimer & Co.’s Brian Belski said.
Valuations in the Standard & Poor’s 500 Index increased by the most since the financial crisis last year as 460 stocks rose, more than any year since at least 1990. Neither are reasons to bet against equities now.
The U.S. stock market probably hit bottom yesterday and will rebound as investors refocus on fundamentals and earnings after weeks of distraction from the European debt crisis, Oppenheimer & Co.’s Brian Belski said.