Canadian Markets Better Off With Bonds

Canadian stocks have severely floundered in this decade. Canadian federal, municipal and provincial government debt returned 94% even though Central banks around the world were suffering from the after effects of the Great Financial Crisis, filling the economic void by introducing gravely low interest rates. The return for Canada’s equity also gained 95% since the end of 2009. That is less than half the 255% return for the S&P 500 index in the U.S.

There were some off-the-chart stock winners:

Boyd Group Income Fund returned 4300%
Constellation Software Inc. returned 4200%
Air Canada was third at 3700%

Here is a report on the performance of equities and corporate bonds in this decade:

Roaring Stocks: Canada’s stock market gained over $660 billion in value and surpassed $2 trillion in market cap. The company has attracted the investment drifts like Cryptocurrency miners and marijuana firms. Some firms, which failed post legalization of weed, caused the cannabis stocks to go down by two third and also froze the capital markets. Natural resource companies and the energy sector were the worst performers on the S&P/TSX Index over the decade.

Lonnie’s Wild Ride: While the Federal Reserve relieved the monetary policy in the wake of the Great Recession, the Bank of Canada elevated rates in 2010. But in the year 2015 Lonnie lost 19% as a plunge in crude prices adversely affected economic growth. This year, the Canadian currency has come out on top relative to its Group-of-10 peers due to surge in population that incited growth and kept the central bank on hold.

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