Why Americans Should Invest in the Canadian Stock Market

Apr 1
09:15

2011

Jennifer Nobles

Jennifer Nobles

  • Share this article on Facebook
  • Share this article on Twitter
  • Share this article on Linkedin

The traumatic global financial crisis of recent years has left many Americans taking a closer look at their stock portfolios. This article will describe why investing in the Canadian Stock Market may be a good option for many Americans.

mediaimage

While the United States government is placing many new regulations on banks,Why Americans Should Invest in the Canadian Stock Market Articles Canadian banks have been, and continue to be, more heavily regulated than their American counterparts. To investors, this means that the Canadian market is not subject to the wild swings of the NYSE. Most financial experts agree that portfolio diversity is a key element to a healthy Wealth Management strategy, and with the Canadian market so stable, more Americans should take a serious look into this investment arena.

Naturally, investing in any stock market is a risk. However, the Canadian market continues to grow at an annual rate of two to three percent, even in turbulent times, (and at 5-7% annually, on average across its history) and the market’s wide range of benefits offered is hinted at by the companies worldwide that continue to invest heavily in this profitable market.

When considering investing in the Canadian Stock Market, American investors should think about signing up with a Canadian stockbroker. These individuals will have a working knowledge of the Canadian market, and can offer professional advice on how to best invest your money. When speaking with these stockbrokers, also be sure to inquire about different options trading that can help to reduce your investment risk. Depending on your ambitions and risk tolerance, your stockbroker will help guide you in the right direction.

Canada has an abundance of natural resources, such as natural gas, and investments in these resources can often be quite lucrative. You can invest in Canada's natural resources through the NSX, or National Stock Exchange. Ask your Canadian broker about this worthwhile opportunity.

Anyone investing in Canada should also take a look at Mining Stocks; Canada is rich in silver, gold, and copper, and investments in mining stocks have been very financially rewarding in recent years.

All-in-all, American investors should absolutely consider investing in the Canadian market. Canada's stock market is the third largest stock market in the world, and only trails behind the NYSE and the NASDAQ. The Canadian market is incredibly stable and continues to grow every year, making it an attractive investment option for Americans to consider.