Canada caught a bit of a cold from the United States’ big sneeze, but 2010 is forecast to be a better year for our neighbors to the north and their exchange traded fund (ETF).
Canada is set to have a bright 2010, according to analysts, as the country boasts a stable banking system. The country branched out and away from relying on the business of the States and has tapped many other foreign markets that need the Canadian resources. [Other reasons Canada is in recovery mode.]
Why else might Canadians be smiling more next year? Money Energy reports:
- The Canadian Real Estate Association said new home sales were up 73% across the country in November, compared with the same month last year, but still slightly below the levels of November 2007. [Canada is set up for a growth spurt,when-who knows?]
- High domestic stability and consumption strong enough to withstand the drop-off in worldwide export demand.
- Increasing global demand in emerging markets and developing nations that rely on natural resources that Canada supplies.
- Even if the U.S. dollar strengthens, the Canadian loonie is expected to remain firm.
- May shares in representative companies from the banking, energy and telecommunications sectors are set to have a decent or prosperous 2010. [What else will help this ETF get hot?]
For more stories about Canada, visit our Canada category.
- iShares MSCI Canada Index (NYSEArca: EWC): up 48.1% year-to-date
- CurrencyShares Canadian Dollar Trust (NYSEArca: FXC): up 13.6% year-to-date
Read the disclaimer, as Tom Lydon is a board member of Rydex Funds.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.