Canada caught a bit of a cold from the United States’ big sneeze, but 2010 is forecast to be a better year for our neighbors to the north and their ETF.
Canada is set to have a bright 2010, according to analysts, as the country boasts a stable banking system. The country branched out and away from relying on the business of the States and has tapped many other foreign markets that need the Canadian resources.
Why else might Canadians be smiling more next year? Money Energy reports:
- The Canadian Real Estate Association said new home sales were up 73% across the country in November, compared with the same month last year, but still slightly below the levels of November 2007.
- High domestic stability and consumption strong enough to withstand the drop-off in worldwide export demand.
- Increasing global demand in emerging markets and developing nations that rely on natural resources that Canada supplies.
- Even if the U.S. dollar strengthens, the Canadian loonie is expected to remain firm.
- May shares in representative companies from the banking, energy and telecommunications sectors are set to have a decent or prosperous 2010.
iShares MSCI Canada Index (NYSEArca: EWC): up 48.1% year-to-date
CurrencyShares Canadian Dollar Trust (NYSEArca: FXC): up 13.6% year-to-date
Tom Lydon is proprietor of ETF Trends, a website with daily news and commentary about the fast-changing trends in the exchange traded fund (ETF) industry. Mr. Lydon is also president of Global Trends Investments, an investment advisory firm specializing in the creation of customized portfolios for high-net worth individuals. He has been involved in money management for more than 25 years. Mr. Lydon began his career with Fidelity Investments and was a founding member of Charles Schwab’s Institutional Advisory Board. He serves on the Board of Directors for US Global Investors, Inc. and Rydex Investments, and is also on the Pacific Investment Management Co., LLC (PIMCO) Advisory Board for RIAs. Mr. Lydon is a regular contributor to major print, radio, and television media and is invited to speak to audiences at financial conferences around the world. Mr. Lydon is the author of The ETF Trend Following Playbook: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds, as well as iMoney: Profitable Exchange-Traded Fund Strategies for Every Investor.
Visit his site: ETF Trends (http://www.etftrends.com/)