Canada's Economy Falters, But TSX Keeps Climbing

The global economy is in good shape due to tech spending, fiscal stimulus, and an upturn in manufacturing.

However, there are signs of trouble for the wealthy consumer, who has been driving economic growth. According to data from earnings reports, higher-end consumer spending remains decent, but this is a slow metric.

The Canadian economy is also struggling, with two consecutive quarters of negative GDP. While the market doesn't seem to care, attributing its rise to sectors like energy and technology, the Financials sector, led by the 'big six' banks, has contributed 7.5% to the S&P/TSX's overall advance.

Craig Basinger, Chief Market Strategist at Purpose Investments Inc., notes that while the data is troubling, the market doesn't seem to be paying attention yet. He advises investors not to count on a recession being triggered by two consecutive quarters of negative GDP.