BMO Capital Markets is predicting North American stock markets will have a positive 2013 and the U-S will set the tone.
Deputy Chief Economist Douglas Porter says the American economy outpaced Canada in 2012 for the first time in eight years. He expects the trend to continue this year.
BMO predicts the TSX will gain 4% in 2013 and the S&P 500 will rise more than 9%.
Despite our economy lagging, the Bank of Canada is not expected to adjust its prime rate at all this year.
For investors the equity market should deliver better returns driven by continued economic growth and improving confidence.