Canada has benefited from the distance it acquired from the United States during the market meltdown. The country's related ETF has responded to the distance with strong performance this year.
Canada is still raking in hefty capital inflows and a healthy housing market on its way to full recovery. The exports to the United States have helped out the Canadian economy as well, with oil, natural gas, agriculture, and metals leading the way. China has also been guzzling up these resources, as well.
Daniel Gross for Newsweek makes these points about the recovery in the Canadian economy:
- Since its brief recession ended this summer, Canada has been creating jobs (31,000 in September)
- The Canadian dollar–the loonie–is soaring against the U.S. dollar.
- This is the only major Western developed economy that has emerged from the recession
- Mortgage default rates have been low, and no large Canadian bank has failed. This is due to the fact that the lending in Canada never went hog wild like it did in other places; Canadian home buyers had to make down payments, funky interest-only loans were nowhere to be seen, and banks kept their leverage ratios in check.
- iShares MSCI Canada Index (NYSEArca: EWC) up 42.6% year-to-date