While the Toronto Stock Exchange has underperformed thus far in 2023, at least one analyst believes the third quarter could be the turnaround.

Sid Mokhtari, chief market technician at CIBC Capital Markets, believes the TSX could outperform the S&P 500 this quarter.

“We are noticing the relative performance of value proposition of the stocks are beginning to turn positive on a one month and one quarter basis,” he told BNN Bloomberg.

“We think there’s a trend that’s evolving and we think it’s a telling story for TSX.”

Mokhtari said the TSX generally outperforms the S&P 500 during the month of August at a 70 per cent hit ratio, meaning the ratio of stocks that made money.

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