Why the Canadian Market is More Lucrative Than the US Market for Investors?

Millions of people dream of moving to Canada each year. It is one of the most peaceful and wealthiest nations of the world. Back in 2016, their gross domestic product reached a whopping $1.6 trillion. The abundance of natural resources makes Canada one of the premier international destinations for investment. The US investors find the Canadian market undeniably lucrative for small cap and large cap investments.

Which are the most reliable sources of Canadian stocks and bonds?

Two of the most popular ways of buying stocks in Canadian companies is by purchasing a couple on the Toronto Stock Exchange or by buying bonds through the exchange-traded funds (ETF). There are several alternatives to each institution. You can also check the Canadian National Stock Exchange and American Depository Receipts for the availability of the Canadian bonds and stocks for US investors. Year after year people seek out shares in global companies with significant holdings in Canada or dedicatedly Canadian key industries like oil or power. The Canadian stock market has been flourishing over the last few decades due to the firm reliance of the foreign investors on the nation’s economy.

Why should you consider investing in the Canadian market?

Here are some of the advantages of investing in Canada –

  1. Stable inflation rates –unlike several other nations like Venezuela or India, the inflation rate in Canada is steady. Emerging markets usually pose a significant threat of rapidly rising inflation rates that reduce the net value of the shares. However, the foreign investors in Canada are safe due to their tight monetary policy and conformist bailout policies.
  2. The abundance of natural resources –at first glance, it might seem unrelated to the share market economy of a country. Canada has copious reserves of natural resources including precious metals and crude oil. It is a country with multiple sustainable development plans and policies in place. Their currency value remains considerably constant since the plentiful natural resources supply enough energy for the entire nation. That has kept Canada from spending billions like some other nations that have to import energy reserves from other countries.
  3. Negligible budget deficits –the most noticeable budget deficit of a first world country was that of the USA in 2010. The USA battled a gap of around 9.8%, whereas Canada has faced its worst during the same time. Its budget deficit was approximately 2.1% only. The presence of the excellent stability in the nation’s budget makes long-term investment more favorable for the foreign investors.

The safest way to invest in the Canadian stock market is through the US-approved ADRs and ETFs. Contrary to popular belief, there are multiple agencies across the fifty states that can give you access to a more rewarding share and the trading market that is impervious to the inflations and budget deficits that are plaguing several nations of Europe and Asia. In fact, you can find most of the largest trading companies in Canada in the S&P/TSX 60 Index. Several smartphone applications can also help you stay updated with the trading and stock exchange news from abroad.

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