‘About time’: Money manager says TSX could post 10% gain
After the TSX posted its ninth straight winning session on Wednesday, one money manager says he’s “not shocked” to see the index recover. And “if things calm down in the markets,” TSX investors could see a return of at least 10 per cent, said Barry Schwartz, chief investment officer and portfolio manager at Baskin Wealth Management.
“About time,” Schwartz said in an interview with BNN Bloomberg on Thursday. “The TSX has been lingering and a disaster – embarrassing.”
Schwartz credits rising oil prices for the recent gains in the TSX, which is now within striking distance of its record intraday high of 16,421 points, despite lingering uncertainty over the Trans Mountain expansion project and NAFTA renegotiations.
He also noted Canadian banks have improved and that housing concerns haven’t had an impact on balance sheets yet.
“Money tends to chase what’s done well in the past,” Schwartz said. “U.S. did well in 2017, we’re going to put money into the U.S until there’s a tipping point. I think we’re at this tipping point.”
“The TSX, I think [is] significantly undervalued, [Canadian] banks significantly undervalued,” Schwartz said. “So I’m not shocked to see the TSX recover.”