Thursday, 4 July 2013

Canada vs the USA

July 4 2013 -- Happy Independence Day.  For about a year now I have been urging Canadians to buy US equities and convert the "Northern Peso" (the Canadian dollar) to U.S. funds.  The rest of the world's resource base economies like Brazil and Australia are in full scale retreat. Canada has been given a special pass because people recall the days when Canada had strong manufactures like Massey Ferguson and high tech companies like Spar Aerospace and Nortel to trade with America. But the truth is that in 2013 Canada is little different than Brazil.  Except for the basket case cell phone maker Blackberry and uber-government subsidized Bombardier -- Canada is now a "Banana Republic" (no not the clothing store -- that would be a good thing) total relying on resources. Read Pop Goes the Commodity Bubble Canadians are lucky oil held up due to middle east tensions, but the whole country is riding on Alberta's oil economy.

The United Sates will be the lead economy in the world for some time to come, Read The New Momentum.
and Why I believe in America.

The markets tell it all -- here is 10 years of performance US mid caps vs the TSX 60

USA

Canada

As for my portfolio all I can say is God Bless America.

 

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