Beaten-Down Canadian Stocks Present Good Investing Opportunities
By Tom Essaye Part of being a good contrarian investor is constantly looking beyond your investment “comfort zone” and trying to find less-followed opportunities. In that vein, as I look across the scope of the investing landscape, I can’t help but see that the whole world has been focused on two regions: Europe and China. Obviously people are paying attention to Europe because of the ongoing economic weakness and seemingly ever repeating sovereign debt problems. China, on the other hand, is being closely watched with the hope that it will be able to engineer an economic “soft landing” and continue to help the global economy grow. To be sure, these are two very important regions of the world. And investors must monitor them because the movement of those markets will have an effect on us here at home. But, you shouldn’t have “tunnel vision” and only focus on those two areas — and ignore the other regions of the world where there is opportunity. For example … Canada has often been overshadowed by its much larger neighbor — the United States. While everyone is focusing on Europe’s problems and Asia’s growth, things in the land to our north have quietly been picking up. Let me give you three reasons why … #1 — Strong banks Canadian banks are some of the best run and well capitalized in the...
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