Spark Global Limited reports:
Canada’s stock market also offers diversity that the U.S. lacks, and its natural resources sector makes it vulnerable to the frequent swings in commodity prices. Here are the benefits of investing in Canada:
Low budget deficit — In 2018, Canada had a budget surplus of 0.8% in the first half of the year. Over the same period, the US deficit remained at about 4 per cent of gross domestic product. Moreover, it is better than many Asian and European countries. This means more manageable fiscal stability and long-term prospects.
Stable inflation – Unlike many emerging markets, Canada’s inflation rate is fairly stable. This is due to a more conservative bailout policy and partly tighter monetary policy, with a target rate of 2%.
Strong Natural resources – Canada has a huge natural resource base, from crude oil to precious metals. This has helped China avoid the problems faced by other net energy importers.
How to buy Canadian stocks
Search for a US listing
The easiest way for investors to buy Canadian stocks is through a listing on the New York Stock Exchange (NYSE). Many Canadian companies, particularly those with offices overseas or dealing in foreign exchange, have received approval to trade on the NYSE, including the five largest banks operating outside Canada.
The benefits of trading on the NYSE include:
Traders need not worry about switching their currencies
They can buy shares through any domestic brokerage
They had access to SECURITIES and Exchange Commission filings, which provided an opportunity to assess the company’s health
Persons wishing to invest directly in the Canadian market (rather than a specific industry or company) can do so through the following channels:
Bank of Montreal (BMO)
Royal Bank of Canada (RY)
Canadian Imperial Bank of Commerce (CM)