How is the Canadian economy doing right now? (worth buying oil trusts?)

[Adar]

I recently realized that I haven't heard much about the Canadian economy during the last few years. I am thinking about investing in natural resources and the Canadian oil trusts but I am abit deterred by the Swedish currency being quite horribly undervalued. We have lost roughly 10% against it in the last year despite being one of few economies that is doing quite decently during the crisis.

So basicly I am wondering. How is the Canadian economy doing as a whole and will the transformation of oil trusts to regular companies make a big differences?

[RVFVS]

I wouldn't buy anything atm. Our economy (while good compared to America) is not doing that great. When I have invested I have done it in areas that I know will be safe and the Canadian economy, unfortunately, is will either remain OK or collapse in a few months.

[Stavroforos]

From what I've heard, Canada's economy has been the least hard-hit out of all the developed nations.

[Exarch]

if you want to invest, make sure u do ur research
is it hard for non canadians to invest in canada?

[Adar]

if you want to invest, make sure u do ur research
is it hard for non canadians to invest in canada?

As a Swede it is very simple to invest in the Canadian stock market. Several of our banks allow us to buy directly from the Toronto stock market at ~0.15% courtage. So my major concerns are if the the Canadian dollar is going to crash.

The reason that I am asking about it here is that I want to hear the opinion of normal people living in Canada. I don't really trust economical analysts since they tend to miss obvious things that they have forgotten to include in their elaborate simulations.

[Stavroforos]

Yeah, I can't tell you about the future, but the economic crisis has definitely not been severe in Canada. Life has gone on much the same way as it did before the crisis.

[Icewolf]

i am no economist by any shot, but i would say that after the BP oil disaster, stocks in other companies may rise, for instance alberta oil sands perhaps?

[General David]

The Bank of Canada has raised its interest rate before the Americans or any of the other major Western nations, and this is a clear sign of our optimism regarding our economy. The Canadian economy of course depends on the performance of the US, but if we are faring well compared to the US it is thanks to the Asians (who buy Canada's natural resources) whose influence has grown throughout the years...

By the way I wonder why there is no economy section in this forum.

[Snowball]

I would think investing in raw resources such as oil etc would have an acceptable risk, and Canada is a pretty stable country, economy wise. Then again, I wouldn't bet my life (or a very large sum of money) on it, since I am but a novice.

^^; I think making an economy forum would do nothing but produce a constant clash between the various free market libertarians, capitalists of all sorts, socialists and communists etc etc etc, while it could be interesting and possibly very good I also fear it could turn into a mirror image of the mudpit

[roy34543]

The Canadian economy has a very optimistic outlook for a developed country, but I would consider some developing countries like brazil an even sounder investment at the moment.
Of course, If your looking for safety then Canada is an excellent idea. But dont expect the kind of returns you could get elsewhere. Remember that Brazil for example has also recently found extensive oil reserves.

[Viking Prince]

This is a good question. The problem with foreign investments is that you are taking on several risks at once. You are taking on the individual risk of the direct investment, You are also taking on the risk of currency fluctuation to repatriate your earnings or losses back into you home currency. You are also taking on the political risks of another sovereign. In this case the sovereign rule of law risk is minimal, but you should be aware that it does exist. The currency risk is also magnfied because your base currency and the target coountry currencies are not a major currency (Euro, Sterling, US Dollar, Yen). This means that each currency will also flluctuate based upon changes in policy of the major currencies as well. If you wish to minimize the currency risk, I would suggest looking to investments in Euro or Pound Sterling since these currencies are a bit closer to home.

[Adar]

This is a good question. The problem with foreign investments is that you are taking on several risks at once. You are taking on the individual risk of the direct investment, You are also taking on the risk of currency fluctuation to repatriate your earnings or losses back into you home currency. You are also taking on the political risks of another sovereign. In this case the sovereign rule of law risk is minimal, but you should be aware that it does exist. The currency risk is also magnfied because your base currency and the target coountry currencies are not a major currency (Euro, Sterling, US Dollar, Yen). This means that each currency will also flluctuate based upon changes in policy of the major currencies as well. If you wish to minimize the currency risk, I would suggest looking to investments in Euro or Pound Sterling since these currencies are a bit closer to home.

Investing in Euro is probably a very bad idea. SEK have taken a heavy pounding in the last months in comparasion to both the USD and the Euro despite Sweden having a very healthy economy compared to other EU nations. The Pound is a better bet in most ways but I am relucant since I think that Great Britain is onlya small step away from a serious economic crisis. Therefore I think that CAD is more attractive than both the Pound and the Euro despite the greater geographic distance.