Canada caught a bit of a cold from the United States’ big sneeze, but 2010 is forecast to be a better year for our neighbors to the north and their ETF.
Canada is set to have a bright 2010, according to analysts, as the country boasts a stable banking system. The country branched out and away from relying on the business of the States and has tapped many other foreign markets that need the Canadian resources.
Why else might Canadians be smiling more next year? Money Energy reports:
- The Canadian Real Estate Association said new home sales were up 73% across the country in November, compared with the same month last year, but still slightly below the levels of November 2007.
- High domestic stability and consumption strong enough to withstand the drop-off in worldwide export demand.
- Increasing global demand in emerging markets and developing nations that rely on natural resources that Canada supplies.
- Even if the U.S. dollar strengthens, the Canadian loonie is expected to remain firm.
- Many shares in representative companies from the banking, energy and telecommunications sectors are set to have a decent or prosperous 2010.
- iShares MSCI Canada Index (NYSEArca: EWC): up 48.1% year-to-date
- CurrencyShares Canadian Dollar Trust (NYSEArca: FXC): up 13.6% year-to-date
Read the disclaimer, as Tom Lydon is a board member of Rydex Funds.