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iShares Core S&P 500 Index ETF (CAD-Hedged) (XSP)
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iShares Core S&P/TSX Capped Composite Index ETF (XIC)
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iShares MSCI EAFE Index ETF (CAD-Hedged) (XIN)
Q: I'm split at 20% ETF and 80% stock. Going into 2024 where do you see the canadian market vs the S&P or MSCI EAFE ? The US has outperformed the other 2 in 2023 as usual but do you believe that this continues into 2024? Could you comment on the 3 and what are the chances for the Canadian and International markets to perform better than they have in the coming years?
5i Research Answer:
Such predictions are always tough, but we would side with the US winning again in 2024. Simply put, its GDP is far stronger (4.9%) than the others and this gives it a wide cushion in a slowdown. Employment remains high and the corporate recession is over (corporate profits are growing again). Politics could throw a wrench in this plan, though. In Canada, with inflation abating and oil weak, it is hard to see it surging. Europe is essentially in a recession, and the wars are not going to help. Asia will be impacted by much slower than expected China growth. Thus, the US kind of wins by default here.