Investors are sticking to a small pool of domestic stocks, which account for just 3 to 4 per cent of global capital markets
. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.
“The problem is that Canada is 3 to 4 per cent of the world’s capital markets and for most people, it’s anywhere from 40 to 100 per cent of their portfolio,” says Norman Levine, managing director at Portfolio Management Corp. in Toronto. He uses the pandemic foreign buying spree as an example. From January to November last year, $82-billion was invested in U.S. equity markets, according to StatsCan. Investors focused on big technology companies and funds that track broad market indexes such as the benchmark S&P 500.
“Resources and commodities type stocks trade in almost 10-year cycles … boom and bust. We’re in one of the up cycles.” “Home bias has hurt [investors] very badly for returns over the past 20 to 30 years,” Mr. Levine says. “If you’re an advisor at a Canadian brokerage firm and every morning you’re getting inundated with your firm’s research, for the most part, it’s domestic companies.”
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion | Women have been the backbone of care during the pandemicOpinion: Celebrating the profound ways in which women provided care during the global COVID-19 pandemic must involve more than the conjuring of nice words and the banging of pots and pans.
Read more »
Ontario pledges $30M to help kids sports recover from COVID-19“Ontario’s sport and recreation sector was among the first and hardest hit by the pandemic' The province has now committed $30 million to help those organizations cover unexpected costs, stabilize and recover
Read more »
'Disappointing' start to the year as Canadian exports edge down, despite energy surgeImports fell sharply off record highs as supply chain hiccups continued to disrupt trade patterns
Read more »
Why birdwatching has become the hot new hobby for seniorsBirdwatching is a flexible and addictive hobby that’s been growing in popularity during the pandemic
Read more »