I'm just starting out here so bear with me if my questions sound foolish...no pun intended.As I'm now reading through the Motley Fool investment guide, I'm wondering how a Canadian can apply the Foolish Four concept to investing. To have your investments compound, the only way to achieve this is through an RRSP account. However, an RRSP can only contain up to 20% foreign content. So, this leads me to wonder whether I can apply the Foolish Four concept to buying stocks on the TSE exchange. Will this work? Is it advisable? Maybe I'm better off using a cash account and buying 100% US stocks and paying capital gains tax each year. But to me, this defeats the whole concept of compounding and the effect it has over time. What's a Foolish Canuck to do?
Good afternoon...Generally it is recommended that all new Foolish Canucks read the Canadian Board FAQ first as there is some great information regarding applying TMF's teachings to the Canadian Market. The return of a Canadian Foolish Four is not anywhere near the return of its American counterpart due mostly to a lack of 'industrials' in the TSE. However, there are other mechanical screens that are successful here in Canada. Keep in mind that in the 7-8 yrs at least and probably longer the US market has easily outpaced our market and thus their mechanical screens tend to do better...Thanks,Darren
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