Even though interest rates are going up, the fundamentals for the Canadian economy and the Canadian stock market remain strong. For both Canadian investors and American investors in Canadian equities, your statements should be showing some impressive market gains commensurate with this strong equity market.
If you haven’t entered this market yet, it’s time you considered how Canadian stocks could boost the performance of your portfolio in 2005.
Clearly, the commodity/resource sectors are leading this market. With third quarter earnings season upon us, we remain very enthusiastic about Canadian stocks.
The banking sector is making money. The mining sector is making money. We know very well that the energy sector is making money. It’s been a good year to be an investor in Canadian stocks, and more profits are yet to come, in my opinion.
Corporate earnings from the U.S. will pressure Canadian stocks over the near term, but our long-term trend is intact. As we are only in the middle of the current commodity price cycle, the prospect for Canadian investments remains very strong.