TORONTO (Reuters) - Canadian fund managers are revamping their portfolios, picking cyclical stocks that could benefit from a return to a more typical economy in the coming year, as COVID-19 vaccines roll out and central banks provide a historic level of stimulus.
Supportive of economic recovery, major central banks, including the Bank of Canada, have pledged to keep interest rates at record lows over the coming years and continue with quantitative easing.
That has bolstered investor interest in digital currencies such as Bitcoin. The Bitcoin Fund has soared 65% since it began trading in Canadian dollars in October.
“It’s a hedge against all the money printing that is going on,” said Arthur Salzer, chief executive officer of Northland Wealth Management, noting “institutional investors are embracing” the asset class.