ZCAN - Defense Is Still A Viable Offense
By Kurt Reiman, Daniel Donato
Canadian stocks have made an impressive recovery off the late March lows, leaving the market susceptible to a slower reopening and earnings recovery than is currently reflected in estimates. We therefore favor defensive factor attributes, such as minimum volatility and quality, for their resilience during periods of heightened uncertainty.
Canadian equities have partially recovered from their late March lows. As of May 22, the S&P/TSX Composite Index (TSX) had risen 34% since the March 23 trough, rising for eight of the past nine weeks. Extraordinary policy measures, the reopening of