Worst may be over for Canadian equity returns: CIBC World Markets

But recovery hopes rest on credible fiscal stimulus packages

CIBC (CM: TSX; NYSE) - The worst period in generations for Canadian equity returns may already be over if credible fiscal stimulus packages are launched in North America in the coming weeks, notes a new report from CIBC World Markets.

"The bad news is that we are in a recession, and a fairly deep one at that. The good news is that the stock market has already discounted a depression," says Jeff Rubin, CIBC World Markets chief economist and chief strategist, in his latest Canadian Portfolio Strategy Outlook Report. "That's why no matter how severe the recent non-farm payroll losses are" or how dismal the manufacturing index numbers get, "the stock market soon shrugs it off."

Standard & Poor's will make the following changes to the S&P 500 and S&P SmallCap 600 indices:

-- Iron Mountain Inc. (NYSE: IRM) will replace UST Inc. (NYSE: UST) in the S&P 500 after the close of trading on a date to be announced. UST is in the process of being acquired by S&P 100 and 500 constituent Altria Group Inc. (NYSE: MO) in a deal that is anticipated to close in the first full week of 2009.

-- ALPHARMA Inc. (NYSE: ALO) will be removed from the S&P SmallCap 600 after the close of trading on Tuesday, December 30. The company has been acquired by S&P 500 constituent King Pharmaceuticals Inc. (NYSE: KG) in a tender offer that expired today.

BMO Financial Group's Market Strategists Unveil Their Predictions for 2009

BMO Financial Group's economists, market and commodity strategists in Canada and the United States give their predictions for 2009. Media can arrange interviews with our BMO strategists by calling 416-867-3996 or 312-461-6625.

Jack Ablin, Chief Investment Officer, Harris Private Bank
- Deflation forces could give way to monetary and fiscal stimulus sooner than expected.
- High quality bonds offer a relatively attractive yield as a conservative play, but investors should stay in shorter maturities.
- Stocks are cheap on a multi-year basis, but investors need to focus on price-to-sales, not price-to-earnings.

Toronto Stock Exchange and TSX Venture Exchange are being halted due to technical issues

December 17, 2008 (TORONTO) – Toronto Stock Exchange and TSX Venture Exchange are being halted due to technical issues. Updates will be provided.

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