Our reliable friend at GS makes the following observation about Canada and how she is being perceived from our global counterparts as a safe, reliable and responsible place to do business and invest.
I continue to say it; as the world’s major industrialized nations may suffer for some years to come (USA, Europe, etc.), Canada is on solid footing from many prospectives and will continue to see money flow in to our economy and currency.
“We have said it once and we have said it again, the downside risks and upside potential for Canada vis-à-vis the U.S.A. have rarely looked as compelling as is the case today.
This is true in terms of the financial, economic and fiscal landscape, but in terms of which jurisdiction has the pro-business and pro-market political atmosphere, Canada has never been more to the right of the U.S.A., which is one reason why the loonie managed to test par against the greenback this year without the price of oil heading towards $150 per barrel.
It is because Canada has been re-rated in eyes of the global investment community. Have a look at 49th Parallels on page 39 of the Economist for more on this file.
This pro-business theme in Canada looks set to last for quite a while and so it is difficult to see, in this relative political setting, the Canadian dollar failing to remain in what looks to be a long-term bull market.”
Source: David A. Rosenberg, Chief Economist & Strategist GS
Saverio Manzo
http://saveriomanzo.com/
http://saveriomanzo.blogspot.com/
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