Americans should turn to Canada for outsized returns

Canadian stocks are set to give American investors a twofer. As stocks go up, Gordon Pape, one of Canada's leading experts on mutual funds and the editor of The Canada Report, says that Americans get stock appreciation and a currency bonus - making investing in Canadian stocks more profitable than U.S. stocks.
And now, says Pape, is an especially good time to invest since stocks and the Canadian dollar have recently taken a breather.

We caught up with Gordon Pape to talk to him about earning market profits plus a currency bonus.

Recently, you said that American investors were able to really make a killing in the Canadian market. Can you explain?

Pape: Yes, as of June 17, the S&P 500 had risen 41.9% from its March low. That's good. But at the same time, the Toronto Stock Exchange Composite Index was up 42.3% and the Canadian dollar gained almost 17%. So Americans investing in Canada got not only great market returns but also a huge bonus. The market increase plus the currency bonus resulted in a total return to 58.9% - significantly higher than investors would have made in the S&P 500.

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Americans should turn to Canada for outsized returns originally appeared on BloggingStocks on Tue, 23 Jun 2009 15:50:00 EST. Please see our terms for use of feeds.

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