Tuesday, June 29, 2010

Canada: the new destination of American Investment Capital...Who would have thunk it?

Here is a news stopper: Canada is now seen by American investors as a much better place in which to invest their money than the U.S. In fact, over the recent months since the Wall Street debacle, according to CBC's The National, June 29, 2010, some $110 billion has been invested here, because of the strength and security of Canada's"economic fundamentals". That would include our steady banking system, our plethora of natural resources, including the Oil Sands development, our strong and educated work force, our stable political system and our long-term development of the very fundamentals which seem to be missing in the U.S. economy. Another advantage is the expected rise in interest rates here, cmpared to the stagnation of those rates in the U.S. Investors really like to see those rates growing, because it is on the strength of those rates that much of their future growth is based.
There are even those investment advisors who think out loud that 2010 may be the start of a truly Canadian decade, in terms of gaining and holding respect from the U.S. investor, surprised that their northern neighbour, about whom they know so very little, has finally emerged on the radar screen known as Wall Street.
Stability and security are the new "sexy" in investment advisors' lexicons, as they move to advise their American clients to put their money in the Canadian economy.
How long will this last?  It could be a considerable time, given the lack of stability in many of the other western countries' economic futures (if you will pardon the pun!).

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