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The Canadian stock market offers investors a plethora of outstanding companies to choose from. In my opinion, constructing a portfolio composed solely of TSX-listed companies could do you well in the long run. However, focusing so much on one region could be catastrophic during market downturns. It could result in a lot of uneasy nights for investors who aren’t able to stomach a lot of volatility. With that said, it would be a good idea to diversify into other regions of the world.
For many Canadians, the answer to that would be investing in U.S. stocks. That’s because those companies are regulated by a different government and operate under a different (albeit sometimes connected) economy. However, one benefit to investing in U.S. stocks is that Canadians should be very familiar with many of the companies listed on American stock exchanges. That means Canadian investors could make informed decisions…
