info@learn-to-trade.com
Call us: 416-510-5560
Blog

The TSX Is in Record Territory

When the economy is booming, it’s not uncommon, or always newsworthy, if the stock market hits a new record high. In fact, there are times when the S&P 500 seems to hit a new record high every few weeks.

But in this economic climate, one plagued by stubbornly high inflation, interest rates at decade highs, and an economy that has been straddling a recession for the past year, the performance of Canada’s main index, the TSX in 2024 should have even the biggest bears taking notice.

After hitting a record high in January 2022, the TSX wandered in the wilderness, looking for direction for the rest of 2022 and 2023. It’s been a different story in 2024 with the TSX reaching a number of new record highs.

Most recently, on May 9, the TSX hit a record intra-day high of 22,426.97, topping the previous record high of 22,380.16 from April 9. As of this writing, the TSX is up 14% over the last six months and 8.6% year-over-year.

Will the TSX Hit Additional Fresh Highs?

While record highs are a bullish technical indicator, they can also lead investors to ask if stocks have risen too high and are overvalued. Investors may be reluctant to jump into stocks when the broader index is at record levels, but when it’s supported by underlying fundamental strength, record highs can result in a cluster of record highs.

The TSX was expected to perform well in 2024 but not this well. In February, analysts thought the TSX would rise slightly in 2024 before hitting fresh highs in 2025. So far this year, the big run on the TSX is being fuelled by strong performance with telecommunication stocks and resource shares.

The TSX is made up of 11 sectors, the energy and materials sector account for 32% of the index with the financial market representing 29% of the TSX’s weight. With the three top sectors—which represent 61% of the total market weight—performing well, there’s going to be solid momentum.

And this trend is expected to continue throughout the typically slow summer months. That optimism is being buoyed by strong commodity prices and earnings from some major Canadian companies, including record production and sales from Suncor Energy, an earnings beat from Manulife, an “outstanding” first quarter from Linamar, and robust performance from Telus.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

The TSX hit a new record high on May 9 with investors rewarding individual companies reporting strong first-quarter earnings. How will the TSX perform in the second quarter and back half of 2024? And are new record highs on the horizon? Ask the trading professionals at Learn-To-Trade.com.

As Canada’s oldest and leading provider of stock market trading courses, the trading experts at Learn-To-Trade.com have helped tens of thousands of Canadians, of every skill level, trade more confidently and profit more consistently. We also provide a unique, Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading courses, contact us at          416-510-5560 or by e-mail at info@learn-to-trade.com.

George Karpouzis

George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members.

Recent Posts

  • Blog

Odds of Big Interest Cut Increases as September Inflation Falls to 1.6%

The odds of the Bank of Canada making an oversized, 50-basis-point interest rate cut when…

8 months ago
  • Blog

Are Falling Interest Rates Good for the Canadian Dollar?

The Canadian dollar has not exactly been having a good year against its American counterpart.…

9 months ago
  • Blog

Energy Stocks Back in the Spotlight as Tensions in the Middle East Escalate

Earlier this year Energy was one of the better-performing sectors, rising 17% from January to…

9 months ago
  • Blog

S&P 500, Dow, and TSX Surge to Record Highs After Fed’s Big Interest Rate Cut

The U.S. Federal Reserve made a big splash, announcing an oversized interest rate cut; a…

9 months ago
  • Blog

Stock Market Rebounds, But Smaller U.S. Rate Cut Expected

September is living up to its reputation as being one of the worst months for…

9 months ago
  • Blog

Bank of Canada Announces Third Straight Interest Rate Cut

The Bank of Canada cut its overnight lending rate, which impacts interest rates charged for…

10 months ago