Energy prices have hit many consumers in the pocketbook, but have been a boon to investors in the right markets. Sitting on top of 1 trillion barrels of oil, which country saw its market return more than 48 times the S&P 500 from 1999 to 2007?

A.) Argentina
B.) Brazil
C.) Canada
D.) Denmark
E.) Estonia
Published: May 1, 2008

The correct answer is      (C.)  Canada

Canada's heavy exposure to energy-related industries has been a key driver of outperformance for the Toronto Stock Exchange (TSX), which increased +178% from the end of 1999 through 2007, compared to just +3.7% for the S&P 500. That means for every $1 in returns earned from the S&P over that time frame, investors would have earned $48 from the TSX.

And the good times look to keep on rolling -- the nation is sitting on as much as 1 trillion barrels of oil reserves in the form of oil sands awaiting extraction. This has huge implications for the Canadian economy. After all, Canada is the United States' largest source of imported oil and natural gas. Canada is also a strong producer of copper, uranium, gold, silver, zinc, and lumber. All of these resources are in high demand, particularly in China and India, which is why Canada has enjoyed the full effect of the commodity bull market.

Furthermore, retail sales in Canada have been soaring in recent years because commodity prices have brought foreign investment into the country -- and the economic growth has raised incomes. Of course, this leads to only more growth for our northern neighbor and higher returns for those investors with exposure to the commodity-rich nation.

With these points in mind, it's not surprising that Canada's economy and markets are outperforming those of the U.S. And if you aren't already invested in this phenomenal growth story, there's good news -- it's easy for U.S.-based investors to buy into Canada. In fact, a large number of Canadian firms trade as American Depository Receipts (ADRs) on the major U.S. exchanges.

And in a recent issue of the StreetAuthority Market Advisor newsletter, editor Paul Tracy dove into the Canadian story, detailing precisely why it should continue unabated for years to come. More importantly, he also let subscribers know which four Canadian stocks are the best candidates to soar in the future -- including a trust with a yield of more than 11%, a firm that has seen the price of its products soar +125%, and a miner with the potential to rise nearly +100% in the coming year. To learn more about the Market Advisor, including how to access Paul's profiles of these Canadian firms, please visit this link.

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