Canadian Stocks Closer To Emerging Markets

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    To be clear, Canada is not considered an emerging market economy, says a Provisus Wealth Management ‘Monthly Insight.’ However, an almost unmatched amount of natural resources steers the perception that Canadian stocks do in fact closely resemble emerging market stocks in many ways. With a short exception in 2010 when the correlation with U.S. stocks exceeded the correlation with emerging market stocks, Canadian stocks have moved in a closer relationship with the emerging markets index than any other group of stocks around the world. However, because Canada is much less volatile and normally without worries over political upheaval or accounting irregularities that cause investors to shy away from other locales, the true similarities are really much fewer than the differences, it says.