Canadians have been looking in disarray at the comparison between the Canadian Stock Market and the US Stock Market. On the US side of the border, the market has been going continuously higher for a couple of years, but has now been consolidating. On the Canadian side, the market has wiped out bulls and bears. If a Canadian investor follows (rotates to) the strong areas of the market, the Canadian investor would be ok. However, many investors invest in what they know. Car Industry investors have invested in Magna, whereas Western Canadian investors have been trying to buy a bottom in Oil & Gas stocks for years. While the price of Crude Oil only recently collapsed, Natural Gas investors have continued to be tempted by sudden price rises, only to have the price roll back over and accumulate more losses in the related stocks. When the Natural Gas price finally does break out, no one will believe it. US investors have been able to see the big outperformance with Biotechs and are probably tuned in to it as the US investors have a lot of large companies with liquidity and can move around more.
Canada's stock market leadership has moved around the country with the poisonous rebound of Blackberry in Waterloo, the 80% plunges in oil patch companies in Calgary to the current groundswell towards Laval Quebec with Valeant Pharmaceuticals (VRX.TO). However, for investors in the $TSX index after a few roller coasters, the buyers of the XIU.TO would only be down 2.3 % YTD.
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