Canadian Equities Still Cheap: BlackRock's Reiman

The video discusses the relative valuation of Canadian equities compared to U.S. stocks, noting that Canadian equities are cheaper on a price-to-book basis. It highlights the potential for value if oil prices stabilize and the Canadian economy improves. The speaker advises a selective investment approach, focusing on dividends and dividend growth due to expected modest returns and elevated volatility. Recommended sectors include healthcare, technology, and consumer discretionary, with a suggestion to look overseas for exposure due to underrepresentation in the Canadian market.

What is one reason Canadian equities might be considered attractive compared to U.S. stocks?

• Stronger economic growth

• Lower price-to-book ratio

• Greater market volatility

• Higher price-to-earnings ratio

What factor could improve the outlook for Canadian equities in the first quarter?

• Decline in the U.S. economy

• Increase in interest rates

• Stabilization of oil prices

• Decrease in oil prices

In a market with modest returns and elevated volatility, where should investors focus to gain returns?

• High-risk stocks

• Dividend growth

• Short-term bonds

• Real estate

Which sector is NOT mentioned as a potential area for investment?

• Healthcare

• Real estate

• Technology

• Consumer discretionary

Why might investors consider looking overseas for investment opportunities?

• Stronger currency

• Underrepresentation in Canadian sectors

• Higher interest rates

• Better weather conditions