(Bloomberg) — The wild journey of Canada’s stock market in 2020 exhibits no indicators of abating quickly.That’s the message from strategists who’re anticipating uneven months forward as traders fear a couple of second coronavirus wave and plunging company income amid a worldwide recession, commerce tensions and U.S. elections.“Now that we’re coming into the summer, it’s going to be more of a second guess of really what’s going on because we’ve still got a ton of volatility ahead of us,” mentioned Greg Taylor, chief funding officer at Objective Investments. “We’re not out of the woods of volatility. It’s already been a volatile year for markets, but I don’t think it’s going to end anytime soon.”As rapidly because the Canadian market plunged into bear-market territory in March, it surged much more quickly right into a bull zone. Because the March 23 backside, the S&P/TSX Composite Index has climbed 35% — with loads of bumps alongside the way in which. It’s nonetheless down 11% for the yr.Market swings paint an image of a risky first half. The TSX has moved 1% or extra in both route 54 days to date in 2020, probably the most since 2011, in keeping with knowledge compiled by Bloomberg. There have been eight such days in June, although the positive factors and losses have largely canceled one another out: the index is flat this month.That doesn’t imply that shares gained’t go increased.“While the largest laggards during the bear market have been among the best performing names since the trough, only 20% have seen a percentage recovery greater than the overall market, suggesting to us that these names still likely have plenty of room for recovery,” Brian Belski, chief market strategist at BMO Capital Markets, mentioned in a report.He famous that a few of the sectors with the largest affect on the benchmark, comparable to power and financials, haven’t recovered even half of their bear-market declines. Traders are reluctant to price in a restoration within the price of crude, and so they would possibly nonetheless be ready for the “mortgage deferral cliff.”“We believe that as investors gain clarity and facts, these sectors stand a very good chance to be key drivers of TSX performance over the next few quarters,” he mentioned.There may additionally be extra room for gold miners to rise as traders proceed to hunt haven property, with the price of the valuable metallic rallying greater than 16% this yr.“This raises the question for portfolio managers and asset allocators: Is it too late for gold or are things just getting started?” strategists led by Richardson GMP’s Craig Basinger mentioned in a June 22 report. “Over the past couple of years, we have been, and remain, fans of gold exposure for investors.”U.S. elections could possibly be a giant supply of stress for markets, which in flip could possibly be optimistic for the price of gold and mining corporations, Taylor mentioned. “Gold stocks have had a really good year, and could see some consolidation over the summer. But I think they’re set up for a really good run into the end of the year.”Right here’s what occurred in Canada this week.Markets — Simply the NumbersChart of the WeekEconomyCanada’s sturdy credit standing took a blow as Fitch Rankings stripped the nation of its AAA standing amid a spike in emergency spending for Covid-19, making it the primary top-rated nation to be downgraded by the rankings firm throughout the pandemic.S&P International Rankings nonetheless saved its score at AAA, making Canada solely one among two nations left within the Group of Seven to carry that standing; Germany is the opposite. Moody’s Traders Service additionally provides Canada its highest score.In Tiff Macklem’s first speech as Bank of Canada governor, he mentioned Canada’s economic system will take a very long time to completely recuperate from the coronavirus lockdowns, requiring the central bank to proceed purchases of presidency bonds to maintain rates of interest at historic lows indefinitely.Subsequent week, economists and market watchers will get a gauge of how deep the recession has gone: April gross home product numbers will look grim as a nationwide lockdown despatched the economic system spiraling.PoliticsUnder mounting strain to free a Huawei Applied sciences Co. government, Justin Trudeau made it clear on Thursday he gained’t give method — even when which means two Canadians stay in jail in China.The prime minister rebuffed calls from a gaggle of outstanding Canadians, together with a former Supreme Court docket justice, to finish the extradition case towards Meng Wanzhou in exchange for China’s launch of its two residents.#TrendingInCanadaAfter twenty years within the NBA, former Toronto Raptors star Vince Carter mentioned he’s formally completed enjoying basketball professionally.For extra articles like this, please go to us at bloomberg.comSubscribe now to remain forward with probably the most trusted enterprise information supply.©2020 Bloomberg L.P.