Canadian Stock Market Worst in the World

Corporate Canada Doing Well, Canadian Stocks Not So Much

Globally, major stock market indices are doing well; however, the same cannot be said for the Canadian stock market. The big question is, after a strong earnings season, will Canadian stocks rebound?

A year ago, the Dow Jones Industrial Average passed the 20,000 plateau for the first time ever. Today, even after the stomach-turning volatility in the first half of February, the Dow Jones Industrial Average is up a robust 22.5% year-over-year.

The S&P 500 is also performing well. Despite the sell-off in February, the S&P 500 has advanced 16.3% over the last 12 months. Since the start of January, the S&P 500 is up a respectable 2.7%.

Meanwhile in Canada, even though fourth quarter corporate earnings have been solid, with total profits posted by the country’s largest public companies on track for a close to 20% increase over last year, Canadian equities have failed to impress, and investors have not benefited from the unexpectedly strong results.

Over the last 12-months, the TSX has increased less than one percent. Since the start of 2018, the S&P 500 has actually lost 3.3% of its value. Had you invested at the top of the markets in June 2008, before the Great Recession hammered Canadian stocks, and held on over the last 10 years, you’d only be celebrating a 3.3% gain on the TSX.

So why are Canadian stocks performing so poorly? There are a number of things going on.

First, the TSX is heavily weighed to energy, at around 18.5%. More broadly, energy, mining, and financials account for more than two-thirds of the TSX’s value. That means volatility in the oil and gas and mining sectors are going to weigh down the broader markets and your investment portfolio.

Second, the Canadian economy is doing well, and the country is diversified, but the Canadian stock market isn’t. As a result, the bear market in energy stocks is again, presenting major headwinds. The current market conditions in Canada also highlights why it’s important to review your portfolio and rejig it to ensure you’re getting enough diversification.

Thirdly, the TSX didn’t really benefit from the so-called Trump Bump. U.S. stocks began to rise quickly after Donald Trump ascended to the Oval Office. Investors in the U.S. presumed that Trump’s proposed tax cuts, deregulation, and trillion-dollar infrastructure plan would be good for corporate stocks. The markets responded favourably, sending the Dow Jones, Nasdaq, and S&P 500 to record levels. The benefits of the Trump Bump didn’t have any real lasting effect on the TSX.

Fourthly, international investors do not see much of an opportunity for growth in Canada, as a result, there isn’t a lot of interest in the TSX right now. Should familiar pressures weighing down Canadian equities (uncertainty around NAFTA, housing risks, energy crunch) ease off though, that could change very quickly. That built up tension could release, and investors should relish the delayed rewards of solid fourth quarter earnings.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

There are a lot of reasons why the TSX is one of the worst performing stock markets in the world. That said, there are a lot of different ways for investors to make money on Canadian stocks no matter what the broader markets are doing. And the trading experts at Learn-To-Trade.com can help you navigate ongoing volatility and learn how to read stock market cycles.

Learn-To-Trade.com is Canada’s oldest and leading provider of stock market trading courses and can teach investors of every skill level how to trade more confidently and profit consistently.

How do we do it? The professional instructors at Learn-To-Trade.com understand market behaviour, and, once you see investing through this lens, you can start to anticipate recurring patterns.

Those who take Learn-To-Trade.com’s stock market trading courses will learn how to read charts, as well as learn about technical and fundamental analysis, market trends, blockchain, Forex trading, commodities, futures, stock options, foreign markets, and stock index trading.

At Learn-To-Trade.com we also understand that investors have different needs and learn at different paces, that’s why we provide a unique, Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

Photo Credit: iStock.com/NicoElNino

The following two tabs change content below.
George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

Testimonial 1

Don’t hesitate jump into it right now. You will be glad you did!

Susan C

Learn To Trade
4.0
2014-08-19T04:45:40-04:00

Susan C

Don’t hesitate jump into it right now. You will be glad you did!

Testimonials 2

The ongoing support has been the reason for my success

Patrick L

Learn To Trade
4.0
2014-08-19T04:46:33-04:00

Patrick L

The ongoing support has been the reason for my success

Testimonial 3

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Steven R

Learn To Trade
4.0
2014-08-20T02:56:18-04:00

Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Joseph L

Learn To Trade
4.0
2014-08-20T10:36:37-04:00

Joseph L

The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

Harley S

The course is amazing. Where were you 30 years ago?

Harley S

Learn To Trade
5.0
2014-08-20T10:37:39-04:00

Harley S

The course is amazing. Where were you 30 years ago?

Partick M

I learned the basics I needed to trade successfully.

Partick M

Learn To Trade
4.0
2014-08-20T10:38:34-04:00

Partick M

I learned the basics I needed to trade successfully.

Iouri G

I like making money. I’m very happy, so far so good

Iouri G

Learn To Trade
4.0
2014-08-20T10:39:27-04:00

Iouri G

I like making money. I’m very happy, so far so good

Akos B

I learned things it would have taken me years to figure out

Akos B

Learn To Trade
5.0
2014-08-20T10:40:05-04:00

Akos B

I learned things it would have taken me years to figure out

Robert B

There is always someone ready to answer my questions.

Robert B

Learn To Trade
4.0
2014-08-20T10:40:59-04:00

Robert B

There is always someone ready to answer my questions.

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Uldus V

Learn To Trade
5.0
2014-08-20T10:41:40-04:00

Uldus V

I was impressed with the course’s professionalism and enthusiasm.

Dean K

I wish I knew about trading as a business years ago!

Dean K

Learn To Trade
4.0
2014-08-20T10:42:24-04:00

Dean K

I wish I knew about trading as a business years ago!

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Peter P

Learn To Trade
4.0
2014-08-20T10:42:57-04:00

Peter P

Learn to Trade provided me with strategy, self-confidence and discipline

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Shelley P

Learn To Trade
5.0
2014-08-20T10:34:39-04:00

Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

Amir

Hi George,

I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
Learn To Trade
5.0
2016-10-07T08:56:52-04:00
Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
4.0
14