TD Wealth Asset Allocation Committee (WAAC) Perspectives

The Bank of Canada has cut rates significantly since the spring as inflation has subsided and the economy showed signs of slowing. The TD Wealth Asset Allocation Committee believes that these cuts are supportive of consumers and businesses, which should allow economic growth to reaccelerate. This contributes to the expected S&P TSX Index ("TSX") 2025 earnings growth of ~11%, which creates a supportive backdrop for returns. Within the TSX, banks could benefit from the stabilization of credit and resource companies generally have low leverage and attractive free cash flow.