Published on 22 Feb 2024 on Insider Monkey via Yahoo Finance
14 Best Canadian Stocks To Buy and Hold In 2024
In this article, we discuss 14 best Canadian stocks to buy for 2024. If you want to skip our discussion on the Canadian economy, head over to 5 Best Canadian Stocks To Buy and Hold In 2024.
Despite concerns about high inflation and rising interest rates, the Canadian economy performed better than expected in 2023, with an estimated growth of 1.1%. This growth, slightly below the economy's 2% potential, exceeded initial forecasts. Strong population growth drove demand, supporting the labor market, and creating around 430,000 jobs between January and November 2023. The Bank of Canada responded to the economy's resilience by raising its key rate by 75 basis points to 5.0%. However, growth was uneven in 2023, particularly in interest rate-sensitive sectors like housing, which experienced notable slowdowns. Inflation in Canada has remained stable around 2% annually for the past 30 years, contrasting with the 8% and 13% levels seen in the 1970s and 1980s. Although experts anticipate a decrease in inflation, reaching a stable 2% inflation rate is not projected until the end of 2024. Despite an overall decline in inflation, food price inflation is expected to hover around 4-5% due to factors such as the Canadian dollar's weakness affecting world market trading. Similarly, housing-related expenses are also predicted to rise, surpassing the Bank of Canada's 2% inflation target, particularly in the first half of the year.
On the other hand, Deloitte predicts that inflation will return to the target level by mid-2025. The Bank of Canada is anticipated to commence rate cuts once the path to achieving a 2% target becomes evident, likely in the spring of 2024, leading to a rebound in the latter part of the year. Subsequently, there is an expectation of an acceleration in real economic growth, projecting an average growth rate of 0.4% for 2024. The robust momentum is foreseen to persist into 2025, with the economy experiencing a 3% growth as consumer spending increases and exports benefit from the opening of the LNG Canada export terminal in British Columbia.