This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Make a Run for Canada

Stocks in this article: EWC FXC

Editor's note: This piece originally ran earlier today on our newest Premium service, ETF Profits . Click here for a 14-day trial to this exciting product!

Canada has been displaying excellent strength relative to the rest of the world over the last two years. The country's markets are up more than 140% since the bottom in March 2009. With GDP growth of 3.1% in 2010, Canada's economy is humming along.

The Canadian dollar closed yesterday at U.S. $1.03, its highest level since Nov. 14, 2007. Over the last few decades, the Canadian dollar has been at par or above the U.S. currency for only a scant few months. Much of that time it has traded in the $0.80-per-U.S.-dollar range.

With data indicating that Canada's economy grew faster than expected in December, it's likely that the Bank of Canada's interest-rate meeting and announcement (set for today) will be closely watched. Though the bank is expected to leave rates where they are until the second half of the year, the latest GDP figures could pressure the institution to make increases sooner rather than later.

A key factor for the strong Canadian economy has been increasing commodity prices. By total area (including its waters), Canada is the second-largest country in the world -- after Russia. Canada is an energy and commodity super power. Combine its vast size with its small population (only 34 million people) and you have a density of only 8.5 people per square mile -- among the lowest in the world.

The mix of abundant resources and a small population grants Canada the comfort of knowing it will most likely never run out of whatever commodities it may need. This allows the country to be a net exporter of a wealth of materials. Canada is the U.S.'s largest trading partner as we import more oil from our neighbor to the north than any other country in the world.

In addition, the banking system in Canada is considered to be one of the most efficient and safest in the world. There are five large banks in Canada and a few second-tier players as well. According to a 2008 World Economic Forum Global Competitiveness Report, Canada has the best banking system in the world.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs