The battered economy has left many American investors worried about their stock portfolios. The New York Stock Exchange can certainly be volatile. To hedge swings in the American market, many have turned to stable markets in G8 countries. Among these is Canada and its Canadian Stock Market, the TSX.
While new regulations are now in place for American banks, Canadian banks have been, and continue to be, heavily regulated. This means the Canadian market is less vulnerable to wide market swings brought on by an overambitious financial sector. Therefore, American investors should think about diversifying their portfolios and add Canada’s Market to their investment folder, especially in turbulent times.
Certainly, there is risk in any stock investment. Yet, the Canadian Stock Market continues to grow despite turbulence elsewhere. Many international companies have expanded their reach into the profitable Canadian market and as an investor, it would be wise to research these industries and see what capacity they have for your portfolio in terms of hedging or as primary investment holdings.
Consider signing up with a local financial advisor. Naturally, you would be better served with an advisor/broker from Canada since they are experts in their own market. Ask them about options trading, as this may serve to limit some of your risk. Another avenue to travel is mutual funds. Your Canadian broker will steer you in the right direction, provided you have a serious conversation with them about your goals and risk tolerance.
It would also be wise to employ the services of a localized accountant. Taxes need to be considered, especially when investing in an unfamiliar arena. Working with a local broker might avoid the penalties youll incur from repeatedly transferring currency into, and then out of, Canada.
When investing in Canadian stocks you should take a look at natural resources, like natural gas and oil. Canada is indeed rich in natural resources and this investment area should not be overlooked. There are plenty of avenues for you to seek out investments in this area from direct equity investments to flow-through-shares and more. As always, do your due diligence before investing, and consult with your local advisor Canadian advisor.
Canada is also rich in minerals. Similarly, gold, silver and other metals are in abundance. Knowing this opens investment opportunities, especially in regards to Mining Stock. The demand for commodities continues to increase worldwide, driven by emerging countries, especially China and India. The commodities market in Canada is active and can be immensely profitable to the wise investor. Consult your Canadian broker and discuss the opportunities in commodities best suited for your Wealth Management strategy.
In summary, American investors should take a serious look at the Canadian Stock Market. The savvy American investor will seriously ponder diversifying their portfolios into stable markets such as the TSX. Canadian commodities offer up a wealth of opportunity for investments of all sorts. Finally, it is important that you work with a Canadian advisor/broker who knows the ropes, and an accountant that would be helpful in determining what to expect concerning taxes and exchange rates.