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Author: Starrob Big funky green star, 20000 posts Old School Fool Ticker Guide Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36  
Subject: O Canada Date: 9/13/2010 10:13 AM
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"I've said it once, and I'll doubtless say it a few dozen more times before the U.S. economy returns to health: Just because you have to endure recessionary conditions doesn't mean that your money has to.

That's the argument I make when I urge Americans to search for investments outside U.S. borders. Ironically, your money doesn't have to travel all that far: What's arguably the world's "safest economy" is actually located just north of the border. I'm talking, of course, about investing in Canada.
The United States vs. Canada

With the U.S. economy dragging along huge budget deficits and stuck in low gear, it's time to escape these problems by moving money away from this market.

I have written many times about the importance of escaping U.S. problems by investing abroad. But for those who don't wish to wade through Korean financial statements or Peruvian mining statistics, Canada represents a simple alternative.

In fact, it really has a lot in common with its neighbour just to the south - except for two major differences:

* Canada's economy is backed by a rich cache of oil, gold and other in-demand natural resources.
* And Canada's leaders didn't permit the outgrowth of an avaricious and out-of-control financial sector that then had to be bailed out with a series of budget-busting bailout/stimulus packages.

The annualized second-quarter-growth rate of 2.0% in Canada didn't much beat the 1.6% advance of its U.S. counterpart. But Canada's final demand growth - at 3.2% - was more than triple the tepid 1.0% move reported for the U.S. economy.

That's an indication that Canada's economy, though weighed down partly by its neighbor's weakness, is recovering more robustly.

As noted, Canada's banking system is more tightly regulated than its U.S. counterpart, so it indulged itself much less intently in the subprime-mortgage and financial-derivatives shenanigans that brought the U.S. system down. That means that the Canadian housing and mortgage markets are in better shape than those of the United States, because there are fewer foreclosures."


cont'd



http://seekingalpha.com/article/224816-o-canada-investing-in...
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