Bank predicts strong 2011 market
STOCKS • Laurentian Bank of Canada is anticipating 2011 will be kind to investors, largely because the U.S. economy is getting its mojo back.
Laurentian chief economist Carlos Leitao said the American economy is likely to grow between three and 3.5 per cent this year.
Some of the key factors setting the stage for this growth are the Federal Reserve’s move last year to inject $600 billion US of money supply into the economy, and a deal between President Barack Obama and Congress to extend Bush-era tax cuts.
“The stock market, which posted a strong finish in 2010, should be a major beneficiary of these measures in 2011,” said Leitao.
Leitao said U.S. stocks, in particular, could be a lucrative investment for Canadian investors, given the current buying power of the loonie.