20 reasons to ‘buy’ Canada (not including hockey) – The Globe and Mail

Debt-to-GDP

Buy ‘Northern Tiger,’ Scotia Capital advises

Markets have been exceptionally bullish on Canada lately, citing a rebounding economy, a strong currency, a healthy banking sector and a fiscal position far superior to those of other countries. Some commentators have even mentioned the success of the winter Olympics. Scotia Capital economists Derek Holt and Karen Cordes today cited 20 reasons to invest in ‘The Northern Tiger,’ writing that “the country has much of what one would want in both a global portfolio and a physical presence.” They cite:

1. The Bank of Canada will be the next major central bank to raise its benchmark rate, in the third quarter of the year.

2. The Canadian dollar is poised to hit parity with the U.S. currency and “the economy will not only survive in this climate as it has before, it will generally thrive.”

3. The loonie has an edge over the Australian dollar as Australia’s central bank is close to finishing its pullback from the crisis, while the Bank of Canada hasn’t started yet.

4. Canada will be “the poster child for fiscal health” over the next five years compared to other major economies. “Provincial finances are a bigger challenge, but general government net-debt-to-GDP still stands Canada in very good stead.

5. Corporate revenues should be on a strong growth path, mirroring the beginning of “a strong recovery.”

6. The world wants the commodities Canada has to offer.

7. Canada will boast a “virtually unbeatable” global corporate tax system within two years. “Who’d have thought that after years of painful dialogue that led to reforms?”

8. While growth in productivity suffers now, it could catch up.

9. Real estate is “richly valued” and more of a “containable risk” than it was in the United States and Europe.

10. The balance sheets of non-financial companies are in “excellent” shape.

11. A financial sector deemed “best in class.”

12. Canada will have fewer “messy” exits from emergency measures.

13. Canada has a “relatively favourable” regulatory environment.

14. Ottawa is offering tax incentives to invest in equipment.

15. Canada has little political risk.

16. There is no risk of defaulting on sovereign debt.

17. Canada offers “untapped opportunities” in seed capital and financing for ideas.

18. Last week’s federal budget cut back on the paperwork needed for venture capital.

19. Canada boasts “strengths in diversity” with a high proportion of foreign-born workers and “strong market ties.”

20. Canada offers a highly educated work force.

Mr. Holt and Ms. Cordes did not mention Olympic Hockey, but everyone knows Canada rules.

Posted via web from Toronto Real Estate News | Blog

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About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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