On January 20, 2016, Maclean’s published their feature article:
Assume the crash position: How far will the stock market fall?
Canada’s stock market has suffered through a lost decade of returns.
Why the bad times for Canadian investors could continue.
This is what Maclean’s had to say:
“… the glory days for Canada’s stock market—when the S&P/TSX could be relied upon to outperform the U.S. S&P 500, as it did immediately following the financial crisis—are as good as dead. With global markets now faltering, too, Canadian investors are left wondering just how bad things will get… the outlook appears to be getting worse, not better.”
Just weeks later, Canada’s stock markets – TSX and Venture Exchange – started to rocket upwards, surpassing other markets around the world. This reversal reminded me of what Bob Dylan said in his song, The Times They Are A-Changin: “For the loser now, will be later to win“. And of course, the adage we all know very well, that is to be: “Fearful when others are greedy and greedy when others are fearful“.
Take a look at these market returns since Maclean’s ‘Death of Canadian Equities’ article was written (Jan 20):
TSX: + 18.80%
TSX Venture: + 56.57%
Dow Jones Industrial Average: + 13.30%
S&P 500: + 13.21%
Nasdaq: + 10.72%
Canada, so far this year, is the clear winner; delivering exceptional returns for its investors. But that goes without saying, time will tell whether Canada’s remarkable stock market rally will continue.
Robin Speziale is the national bestselling author of Market Masters, which is available at Chapters, Indigo, and Coles as well as Costco and Amazon.ca. He lives in Toronto, Ontario. Learn more about Market Masters.