Canadian stocks have been upgraded to an overweight position by Ned Davis Research due to a significant 22% rally in the market.

The chief global investment strategist at the firm, Tim Hayes, has highlighted that Canadian equities have performed strongly alongside U.S. markets, making them decisive outperformers.

Despite the recent surge, Hayes has emphasized that Canadian stock valuations remain attractive and are less dependent on the performance of large-cap sectors. This upgrade indicates a positive outlook for investors seeking to increase their exposure to the Canadian market.