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Although Canada would be a big beneficiary of resurgence in U.S. growth, the domestic equity market – still 36 per cent materials and energy stocks – would be hurt by declining resource demand in the emerging markets, according to Goldman’s 2014 outlook .
Although Canada would be a big beneficiary of resurgence in U.S. growth, the domestic equity market – still 36 per cent materials and energy stocks – would be hurt by declining resource demand in the emerging markets, according to Goldman’s 2014 outlook .
(Frank Gunn/THE CANADIAN PRESS)

Goldman 2014 forecast doesn’t make for happy new year on TSX

Goldman Sachs’ global economic forecast for 2014 is not good news for Canadian equities and strongly suggests that investors should continue shifting portfolios to U.S.-dollar assets.

Economist Dominic Wilson’s overriding investment theme for 2014 is U.S. and developed market outperformance of emerging markets. He expects the “long-awaited shift towards above-trend growth in the U.S. to finally occur,” spurred by household consumption and corporate capital expenditure.