In recent months, Canadian stock markets have seen a downturn due to COVID-19 related market volatility. According to Richard Carleton, CEO of Canadian Securities Exchanges (CSE), this trend may be reversed if retail investors return to the markets in 2024.
Carleton’s summation of the current state of the markets is that while it has been a challenge for investors to remain optimistic in the wake of the pandemic, the Canadian market has actually been relatively resilient compared to other global markets. As investors begin to feel more certain about the future, Carleton believes that 2021 could be a time of recovery and growth in the markets.
He predicts that a wave of investors—particularly retail investors—will likely return to the markets in 2024, when more stable economic conditions are likely to be established. This will be fueled by the introduction of new investment opportunities such as the launch of the ‘Digital Canadian Securities Exchange’ (DCSX) in 2021, which will enable investors to purchase and trade a variety of assets electronically.
Carleton is also confident that Canada’s government and central bank have the right policies in place to ensure that the recovery continues. In particular, he believes that the low interest rates and expansionary fiscal policies implemented by the Bank of Canada may provide an attractive environment for investors in the coming years.
It remains to be seen whether Carleton’s prediction will materialize, or what other trends may surface in the Canadian stock market before 2024. However, it’s clear that Canadian markets are beginning to make a comeback, and that the creative actions of the Canadian government may prove to be a major factor in attracting investors in the long run.
“Can 2024 Reawaken the Canadian Equity Market? Richard Carleton Investigates.
