Canadian Foreign Investments Is Hitting Stability SInce September,Reports Say

By Xyla Joelle L. Fernandez

Nov 18, 2016 06:51 AM EST

The foreigners have already bought C$11.77 billion or equivalent to US$8.78 billion worth of Canadian securities in September which had sets them a new record of investment for the first nine months of the year, this is reported by the Statistics  of Canada.

Nonresident investors snapped up C$11.48 billion worth of bonds, primarily in new issues placed abroad by Canadian private corporations. They also bought C$5.69 billion worth of stocks while selling C$5.40 billion in money market paper. And also foreign purchases of Canadian securities from January to September hit an all-time high of C$119.92 billion, much greater than the C$82.37 billion amassed in the first nine months of 2015.

The Statistics Canada said to an interview that most of this increase reflected higher foreign investment in Canadian equities which is mainly resulting from cross border mergers and acquisitions activity.  Canadian had also invested a net C$1.81 billion in foreign securities. Non-US foreign shares hit C8.64 billion which has been the highest monthly total since December 2000.

All-Star Stocks, which combine the best growth and value prospects, gained 15.8% per year on average since we started in 2004. That assumes an equal dollar amount was put into each All-Star Stock in the first year and rolled into the new All-Stars each year thereafter. By way of comparison, the S&P/TSX Composite (as represented by the XIC exchange-traded fund) climbed 4.4% per year over the same period. In other words, the All star stocks beat the market by an average of 11.4 percent points per year.

Investors who put money into our All-Stars since we started in 2004 have enjoyed outstanding returns, easily outpacing the S&P/TSX Composite. If you had split your $100,000 portfolio equally among our All-Star Stocks every year since we launched, your holdings would now be worth $502,000-and that's not including dividends.

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