Geopolitical Conflicts Boost Canadian Energy and Small-Cap Stocks
What happened
Geopolitical conflicts in Ukraine and Iran have boosted the energy sector in Canada. As of October 16, the S&P/TSX Small Cap Index showed a year-to-date gain of 17.7 per cent, which is about 25 per cent better than the Composite Index. The wars have made energy the top performing sector in Canada this year, benefiting both small- and large-cap stocks.
From theglobeandmail.com
Why it matters
The conflicts are affecting global energy markets and driving cost increases. The strong performance of Canadian small-cap stocks, which are concentrated in the mining and energy sectors, indicates a shift in investor sentiment toward these historically volatile companies.
Conflict in Iran and the ongoing war in Ukraine are affecting global energy markets and driving cost increases.
From theglobeandmail.com