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While the Canadian stock market has delivered inflation-beating returns to shareholders, it has trailed the broader U.S. indices by a wide margin in the last twenty years. Since July 2004, the TSX index has returned 400% in dividend-adjusted gains. Comparatively, popular indices south of the border, such as the S&P 500 and the Nasdaq Composite, have generated returns of 641% and 1,007%, respectively, in this period.
Let’s see why Canadian individuals and households should invest in stocks south of the border, helping them accelerate their retirement plans.
Provides diversification and lowers risk
Having a home-country bias is quite natural, given you are exposed to domestic companies and brands at an early age. However, Canadians should note that the country’s stock market accounts for just 3% of the global market in terms of weight.
Alternatively, the U.S. economy is the largest in the world, and it…
