Canada is strong enough to weather a U.S. economic slowdown, says one official – does that mean its exchange traded fund (ETF) is, as well?
Bank of Canada Governor Mark Carney says that while our depressed economy will cause demand for commodities to dip and prices to fall, he predicts Canada will emerge on the other side fairly unscathed, reports Alexandre Deslongchamps for Bloomberg.
Canada has strong consumer spending, in particular, that could help keep its economy afloat in the tough times.
iShares MSCI Canada Index (EWC) is hovering around its trend line (200-day moving average) and is down 2.9% year-to-date. The fund is allocated in commodities, energy and materials, and it also gives investors a play on the Canadian dollar, which is worth slightly more than the U.S. dollar.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.