Great Time To Invest In U.S. Equities


    It’s a great time to invest in U.S. stocks for a variety of reasons, says Rick Przybylski, chief investment officer at STYLUS Asset Management. He points to a number of factors: very attractive stock fundamentals, excellent dividend yields relative to bond yields, and the support of a slow but sustained economic recovery in employment, housing prices and manufacturing. Also, for Canadian investors who already have exposure to Canadian stocks, an investment in the U.S. market acts as an excellent diversifier. More than 75 per cent of the S&P/TSX Composite Index is invested in just two sectors: resource and financial stocks. By comparison, the largest two sectors in the S&P 500 Index (technology and financial stocks) account for only 34 per cent of its weight. A broader mix of stocks in the U.S. means more choice and opportunity and less reliance on volatile commodity prices. The final piece of the puzzle is the fact that Canadians can invest in the U.S. market with the dollar virtually at par, which would be an added benefit to investors in the next few years as the U.S. dollar strengthens.