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AI Ambitions And Trade Frictions, What's Next For Canadian Stocks?

Seeking Alpha
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⚡ Quantum Brief
Canadian equities outperformed U.S. markets in 2025, driven by their lower exposure to AI-driven tech volatility and stronger traditional sectors like energy and financials. Trade tensions between Canada and the U.S. remain a critical risk factor for the TSX in 2026, with unresolved disputes potentially disrupting cross-border supply chains and investor confidence. The TSX’s heavy weighting in commodities—particularly oil, gas, and minerals—positions it to benefit from global demand shifts, offsetting weaker tech sector growth compared to AI-heavy U.S. indices. Analysts project the TSX may sustain its relative outperformance over the S&P 500 through 2026, citing resilient earnings in banking, utilities, and materials as key drivers. AI’s limited disruption in Canada’s market reflects its smaller tech footprint, but long-term growth depends on adapting to automation and trade policy stability.
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TD Wealth5.11K FollowersFollow5ShareSavePlay(9min)CommentsSummaryCanada's market has not been hit as hard by AI disruption due to smaller tech component.Canada-U.S. trade remains a major unknown for the TSX.Still a case for the TSX to continue its outperform against the S&P 500 through 2026. TexBr/iStock via Getty Images Canadian stocks outperformed their U. S. peers last year, but could that continue as investors re-assess the potential impact of AI and continued trade tensions? Michael O’Brien, Co-Head of Canadian Equity Portfolio Management, TD Asset Management, joins MoneyTalk to discuss opportunities andThis article was written byTD Wealth5.11K FollowersFollowTD Wealth is an integral part of the TD Bank Group, which has approximately 24 million customers worldwide, 85,000 employees and CDN $1 trillion in assets on April 30, 2015. In Canada, TD Wealth services customers through: · TD Direct Investing which provides clients access to the information, tools and support that empower them to invest for themselves with confidence. · TD Wealth Private Client Group, which provides discretionary wealth management for high net worth clients and businesses. · TD Wealth Private Investment Advice provides full service brokerage for investors who want a high level of tailored advice and solutions. · TD Wealth Financial Planning develops and implements a financial plan for individual clients. At TD Wealth, whether you invest yourself or benefit from the knowledge provided by your advisor, you gain access to some of the industry's most highly regarded investment analysts, economists and market strategists.

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