Canadian Capitalist Logo Dark
No Result
View All Result
Thursday, September 21, 2023
  • Login
  • Register
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
Subscribe
Canadian Capitalist Logo Light
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
No Result
View All Result
Canadian Capitalist Logo Mobile
No Result
View All Result
Home Economy

Risks in Your Canadian Investments

by Ram Balakrishnan
November 5, 2005
Reading Time: 1 min read
127 7
0
Didgeman (CC0), Pixabay

Didgeman (CC0), Pixabay

153
SHARES
1.9k
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Since there ain’t no such thing as a free lunch, investing in Canada does involve some risks:

  1. The Canadian market is dominated by the finance and resources sectors. The risks of concentration in these two sectors can be seen from the performance of the Canadian market in October. The brutal correction in the energy sector (down 13%) dragged down the TSX to a 5.7% loss in just one month.
  2. The forward P/E of the Canadian market is 14.5, just a little less than the more diversified US market (P/E of 14.6). And as a Globe and Mail column points out today, many Canadian securities are trading at high valuations (Bank of Nova Scotia is trading at 13 times 2006 earnings, whereas Bank of America, Citigroup and Washington Mutual are all trading at less than 11 times).
  3. While the loonie has appreciated sharply over the past three years and many forecasters are calling par with the USD, but the loonie can also depreciate (like it did for most of the nineties).
  4. Foreign investors are piling into Canadian securities (again as the Globe and Mail column points out) and Canadian investors are pulling money out of US equities to invest at home. Is there a better contrarian indicator to hold off any investments for now?

Related posts:

  1. Sector Breakdown of Diversified Portfolios
  2. Jobs gain boosts likelihood of another rate hike soon
  3. A Safe Haven in Uncertain Times: Why Gold and Silver Should be Part of Your 2023 Investment Strategy
  4. Ontario’s Expansion of Private Delivery of Public Health Care: Pros and Cons
Share61Tweet38Share11

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

Adding Canada to Your Portfolio

Next Post

New PowerShares Dividend ETFs

Ram Balakrishnan

Ram Balakrishnan

Related Posts

The Crypto Market: On the Brink of Collapse or Just Hitting a Rough Patch?
Economy

Cryptocurrency: A Fading Trend or a Revolution?

January 19, 2023
2.1k
Ontario proposes 3 step plan to expand private delivery of public health-care services.
Economy

Ontario’s Expansion of Private Delivery of Public Health Care: Pros and Cons

January 16, 2023
2k
Investing in gold and silver can be a great way for beginners to diversify their investment portfolio and hedge against inflation.
Investing

A Safe Haven in Uncertain Times: Why Gold and Silver Should be Part of Your 2023 Investment Strategy

January 13, 2023
2.1k
Economy

Canada’s Immigrant Boom: New Record Set in 2022

January 7, 2023
2k
Ontario says it's limiting the max rent increase for 2023 to 2.5%.
Real Estate

Ontario limits the max rent increase for 2023 to 2.5%

January 6, 2023
1.9k
Canada jobs gain boosts likelihood of another rate hike.
Economy

Jobs gain boosts likelihood of another rate hike soon

January 6, 2023
2k
Next Post
canadian bond etf

New PowerShares Dividend ETFs

Please login to join discussion
Canadian Capitalist

© 2022 Canadian Capitalist

Navigate Site

  • Home
  • Disclaimer
  • Privacy Policy
  • Advertisement
  • Contact Us

Follow Us

No Result
View All Result
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources

© 2022 Canadian Capitalist

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
two man and woman standing on doorway
The man who does not read has no advantage over the man who cannot read - Mark Twain