4 Reasons Canada ETF Is in Recovery Mode

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

Comments

[Gadz:]

With its' massive, under-populated landmass, abundant natural resources and stable, well-educated populace I continue to maintain that Canada is the country of the future; we will do very well going forward.
I love this country!!

Nov 09 02:22 PM

[Henri DeToi:]

Gadz, I could not more agree with you! I recall before the crash going to a conference given by RBC. They were all gong hoe about investing in the US. I recall telling one of the speakers after his presentation that I thought Canada was the place to invest. But I listened to him and invested some of my money in the States which I had never done before. The part that I did invest there was the worst investment I have ever made. I have learned a valuable lesson; don’t listen to nobody and go with your gut feeling at the end. Sometimes I wonder if these guys don’t have a hidden agenda. It seemed they had with all their investment in worthless commercial paper.

Nov 22 12:10 PM

[Gadz:]

I believe every financial advisor always has the same agenda..making money. Which is not evil in itself, you just have to know and protect yourself against what he/she is saying, to make sure it is in your best interest as well.
My lesson over the last 1.5yrs is that if I'm going to lose money, I would rather it be under my own hand, than some well-paid nitwit who should have seen it coming.
Stay sharp! :)


On Nov 22 12:10 PM Henri DeToi wrote:

> Gadz, I could not more agree with you! I recall before the crash
> going to a conference given by RBC. They were all gong hoe about
> investing in the US. I recall telling one of the speakers after his
> presentation that I thought Canada was the place to invest. But I
> listened to him and invested some of my money in the States which
> I had never done before. The part that I did invest there was the
> worst investment I have ever made. I have learned a valuable lesson;
> don’t listen to nobody and go with your gut feeling at the end. Sometimes
> I wonder if these guys don’t have a hidden agenda. It seemed they
> had with all their investment in worthless commercial paper.

Nov 23 11:35 AM