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Cyclical or defensive stocks? How your strategy hinges on economic growth forecasts Add to ...

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The Canadian economy and equity markets are resource-rich and export-dependent, and this made domestic growth perfectly positioned for the increase in U.S. growth and inflation expectations that began in mid 2016. Higher growth forecasts led to rising prices for cyclical, economically sensitive stocks (such as commodity producers) that form large portions of the S&P/TSX composite index, and also for the manufacturing and industrial companies that drive economic growth.

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