The first decade of the 21st century saw Canadian equity markets significantly outperform the US and Global markets. Some of this outperformance was due to the appreciation of the Canadian dollar versus the US dollar and the Euro but the Canadian market delivered outstanding returns over the decade while the US market actually declined over this period. Some of the reasons for this outperformance include the bull market for commodities like oil, gold and basic materials. The rapid expansion of the Chinese economy was great for our commodity stocks. Our financial system also was found to be a lot more conservative and stable than other countries when the global financial crisis hit in 2008. If you would have looked in the rear view mirror in the year 2000 and looked at historical performance, the last place that you would have thought about investing was in Canada as our market had significantly underperformed US and global markets for the previous 3, 5 and 10 year time frames.
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