Should you invest in Canada?

Canada presents a compelling opportunity for investors who want to look beyond the US. Greg Eckel of Canadian General Investments highlights four favourites

Three flags of Canada in front of a business building in Ottawa
(Image credit: Getty Images)

Investors need reminding that North America extends beyond the US. Canada, often overlooked but certainly not a laggard, is projected to be the fastest-growing economy in the G7 in 2025 and stands as a beacon of stability on the global stage in an era of uncertainty. This strength is rooted in its historic banking system, which has not missed a single dividend for 200 years – a feat unmatched by its counterparts in the US or the UK.

Ultimately, the most critical factor in long-term investment performance is the price paid for assets. From this perspective, Canadian stocks present a compelling opportunity, with the country’s exchange trading at its deepest discount to the US market in history. The market’s performance has already begun to broaden: the Canadian S&P/TSX Composite Equal Weight Index has outpaced the S&P 500 Equal Weight Index in 2024, gaining 17.8% compared with 12.3%.

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Portfolio manager, Canadian General Investments