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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