Five Solid Canadian Investments

In the midst of a bleak winter for stock markets, one U.S. investment research company is urging American investors to look North for some comfort.

Morningstar's Kish Patel said:

Words like plunge, battering, rout, meltdown, and apocalypse are sure to bring out the sunshine on these wintry January days. Just remember, this is nothing compared with a blizzard in Winnipeg.

The Morningstar analyst says the recent downward trend in the S&P/TSX composite has created Canadian bargains – his top five picks are:

Biovail Corp. (BVF): This is a company with “solid opportunities in the pipeline” and a long-term spending strategy that will continue to generate development opportunities.

Canadian Natural Resources Ltd. (CNQ): It is one of several oil and gas companies that have been “excessively punished during the market downturn.”

Enbridge Inc. (ENB): In addition to operating the largest gas utility in Canada, there are “a host of opportunities” that exist in Alberta’s oil sands and the Gulf of Mexico.

Royal Bank of Canada (RY): The U.S. and International segments are building scale to add profits to RBC’s “bread and butter” in domestic retail banking.

Thomson Corp. (TOC): The company will benefit from the “continued strength of its legal business, a new focus on content and applications to complement its data offering, as well as its own corporate cost-cutting initiatives.”

Morningstar’s Mr. Patel has a final note to warm the cockles of suffering U.S. Investors:

If you're fully invested and are terrified of the gyrations of your portfolio, take some comfort from the fact that you're not alone. Your trusty northern neighbors have your back.