Is it better to invest in Canadian or American stocks?

Short Answer

Based on the historical data, the Canadian stock performances haven’t even gone close to the US stocks. However, nobody knows what the future holds for us.

Detailed Answer

Investing in Stocks

The investing objective across the globe is one and the same. We all give up spending a part of money today, to invest, accumulate and grow it for a greater purpose in the future. The purpose for which the stocks that are listed across the globe are also one and the same – to raise capital for the relevant company. However, the stock markets of every country differ based on its economy, political environment, supply and demand, investor sentiments, exchange rates, climate, and the current affairs brewing in the country.

US Share Market: An Overview

The United States of America is one of the powerful countries in the world, a very well-developed nation, topping in nominal gross Domestic Product and Net Wealth. There are nearly 13 stock exchanges in the US, however, the two principal exchanges are New York Stock Exchange (NYSE) and National Association of Securities Dealers Automatic Quotation System (NASDAQ). Similarly, there are nearly 5000 indices in the US, but the notable ones are S & P 500, Dow Jones Industrial Average (DJIA) and Nasdaq Composite.

Canadian Share Market: An Overview

Canada, the neighbor to the north for the Americans, is 8th largest in nominal Global Domestic Product, and ranks 3rd in availability of natural resources. The country has 3 main stock exchanges namely Toronto Stock Exchange (TSX), TSX Ventures Exchange (TSXV) and Canadian National Stock Exchange (CSE). The main stock indices of Canada are S&P/ TSX Composite Index, MSCI World and Dow Jones Industrial Average.

US Share Market Vs Canadian Share Market: Historical trends

US vs Canada.PNG

US Share Market Vs Canadian Share Market: Recent happenings

Canada has abundant natural resources. At the onset of the Ukraine Russia war, the TSX witnessed new heights due to the demand for commodities. It in fact outperformed S&P 500 after 13 years. On the other side, the IT industry and US itself is looming into recession as an after effect of the COVID-19 pandemic.

US Stocks vs Canadian stocks - Which is better?

Based on the historical data, the Canadian stock performances haven’t even gone close to the US stocks. However, nobody knows what the future holds for us. One must decide their investment choice based on their country of origin, needs and objectives, investment time frame, current market trends, future speculations and risk appetite.

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