"Global markets are increasingly aware that Canadian households are severely indebted - meaning that the consumption growth that has long powered the economy is unlikely to be sustained.However, Enbridge Inc. International investors sour on Canadaīut Schamotta said there's a deeper problem that the lagging TSX highlights: that international investors don't see as much opportunity in Canada right now. He said low oil prices, combined with ongoing pipeline delays and a strong dollar mean Canadian oil is trading at an even larger discount than usual. "Canada remains a laggard in new-economy activity (the country spends more on real estate commissions and transfer costs than on R&D)," he said in an email. Karl Schamotta from Cambridge Global Payments agreed.
"Whereas it's much larger in the Dow and the S&P., and tech has been far and away the best-performing sector internationally." "The tech weighting is incredibly small in the TSX," he told CBC News. But more importantly, he said the TSX is lagging mainly because it's composed largely of resource heavy stocks that aren't exactly booming right now. His promises of tax cuts, deregulation and infrastructure fuelled the market rally.īill said Canada's stock market index didn't get any such bump. markets began to climb after Donald Trump was sworn in as U.S. "His plans for tax cuts were like catnip for the markets. "As soon as Trump was in office, (stock markets) knew he was going to spend," said Conor Bill, managing director of Mt. His promises of tax cuts, deregulation and infrastructure fuelled the market rally. markets began to climb after Donald Trump was sworn in as president. The date where those three indexes split is no coincidence. Scroll out to see how the three indexes have done since the financial crisis in 2008. Look at the five-year chart,it's the same story. Use this handy interactive chart from Yahoo Finance. On that two-year timeline, the Dow and the S&P are up 49 per cent and 43 per cent, respectively. By the end of January, the Dow and the S&P start their long climb. (Yahoo Finance)Īll three indexes stay pretty closely entangled, rising and falling together right up to 2017. Badly.Ī two-year chart comparing the Dow Jones Industrial Average (in blue), the S&P 500 (in red) and the TSX (in yellow). Look at a two-year chart tracking the Dow, the S&P 500 and the TSX. If you're on a mobile device and it's too tiny all you need to know is the TSX is lagging.
Over 12 months, the TSX has fallen 3.1 per cent. Canada's TSX tells a very different story. At least that's the case for stocks traded on U.S. markets. So, investors may have given some gains back on Monday, but they've seen a solid year of returns. Same goes for the S&P 500 factor in Monday's sell-off and the index is still sitting on a nearly 12.5 per cent gain. Today, even after the plunge on Monday, the Dow is up a respectable 19 per cent over the past 12 months. benchmarks like the Dow Jones or the S&P 500.Īround this time last year, the Dow Jones Industrial Average had just sailed past the 20,000 mark for the first time. Second, that Canada's stock market looks awful when compared to U.S. First, that over a year or more, most stocks are still performing incredibly well. The week's gut wrenching volatility on stock markets tell us two important things.