Even though some stock markets have hit new highs recently, there is still some upside potential.
National Bank Financial’s chief economist and strategist Stéfane Marion expects the S&P/TSX Composite Index to reach 14,400 and the S&P 500 to hit 1,890 next year. The indexes closed at 13,349.77 and 1,802.75 on Tuesday, respectively.
He made the forecast at the Portfolio Management Association of Canada’s 2013 annual conference in Toronto on Tuesday.
And economic growth should be higher globally, rising 3.7% in 2014, up from this year’s level of 3%. China’s economy is continuing to grow, and the United States will experience additional job growth.
“If they can create jobs with a government shutdown, they’ll certainly be able to create two million jobs next year,” he added.
Marion predicts that interest rates in Canada will remain unchanged throughout 2014 and doesn’t expect a rate hike until 2015 at the earliest.
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