Finding Opportunities Inside and Outside of Canada

Canada has a mature and stable economy and a well-regulated financial system. It’s no surprise that Canadian securities factor prominently in many investors’ portfolios.

There can be drawbacks, however, if you’re only focused on Canada. If you are, you may be missing out on global opportunities that add important portfolio diversification, particularly when you consider that Canada only represents about 4% of global markets. Canada’s markets are also dominated by the energy and financials sectors. As a result, your portfolio may also be vulnerable when Canadian equities and bonds underperform.

Choosing investments in several different geographic regions, including Canada, spreads the risk and lessens the impact of underperformance in any single region, while also broadening your horizons and opening you up to a whole world of strong investment opportunities.

 

Market leaders rotate

The following table compares the countries with the best- and worst-performing stocks over the last 15 years. While Canada’s performance has been strong at times, you can see how greater exposure to other countries allows you to take part in the strength of markets worldwide as they alternate market leadership positions.


 

Achieve a well-rounded portfolio, with an advisor’s help

Being a successful investor depends on well-rounded diversification. A financial advisor can help you achieve this, mainly by building a well-diversified portfolio that effectively covers both Canadian and international markets to help you meet your long-term financial objectives.

Contact an MD Advisor to find out how we can help or learn more about MD's investments offering

Previous Article
Insurance for medical residents

As a medical resident, your ability to earn an income is one of your most valuable assets. But life can be ...

Next Article
How to Succeed in a Wide Range of Market Conditions

When selecting a fund manager, look for their ability to perform in all market conditions.

×

Subscribe to our Newsletter

I allow MD Financial Management (including MD Financial Management Inc., MD Management Limited, MD Private Trust Company MD Life Insurance Company and MD Insurance Agency Limited), the Bank of Nova Scotia and other members of the Scotiabank group of companies (“Scotiabank Members”) to send me electronic messages (such as emails and SMS text) about their products and services, offers, events, and other valuable information as well as information about the products and services of other Scotiabank trusted partners that may be of interest to me.  This consent is being sought on behalf of each MD Financial Management and Scotiabank Member which includes any company(ies) or person(s) that form a part of the Scotiabank group of companies in the future. View the MD Privacy Policy here:
!
Thank you!
Error - something went wrong!