By all means, buy Canadian stocks – but don’t force it
The article discusses the current trend of investing in Canadian stocks, highlighting the recent strong performance of the S&P/TSX Composite Index. It cautions against an all-in approach, emphasizing the importance of diversification and careful analysis of individual stocks. The author suggests a balanced strategy that includes Canadian stocks while also considering global alternatives.
- ▪The S&P/TSX Composite Index has increased by more than 30 percent in the last year.
- ▪The Canadian market has lagged behind the world index over the past 10 and 20 years despite recent gains.
- ▪The TSX is heavily weighted towards banks, energy, and gold, lacking exposure to technology and healthcare sectors.
Opening excerpt (first ~120 words) tap to expand
Open this photo in gallery:Favour Canadian stocks, but don’t fill a sector with a weak player, or one that’s trading at an extreme P/E ratio, when there’s so many alternatives outside our borders, writes Tom Bradley.CHRIS HELGREN/ReutersShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountA friend was telling me that his adviser is making a big shift out of U.S. stocks and into Canada. He couldn’t articulate the reasoning but knew the S&P/TSX Composite Index was up more than 30 per cent in the last year and was doing far better than the S&P 500, the most popular U.S. equity index. The conversation lined up with reports I’ve seen recommending that now is the time to invest at home.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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