The Canadian stock market is a great market for an investor to involve themselves with simply because Canada is in much better financial shape than most any other developed country in the world. Its debt is relatively low when compared to that of their neighbors to the south, and Canadians have been known to be very fiscally responsible even when the economy was booming. With this kind of stability in mind, it is important that investors look to certain stocks to capitalize on when they enter the Canadian market.
Royal Bank of Canada
Simply due to the sheer size and amount of business that the Royal Bank of Canada involves themselves with makes this an easy selection for stock investors looking to purchase Canadian stocks. The economy relies heavily on the banks doing well because all businesses conduct their banking with the Royal Bank of Canada. It is a stable bank with a great deal of assets backing it up, which makes it a great pick in the Canadian stock market.
Involved in the manufacturing of nuclear energy, Cameco Corp. was originally started as a gold mining company but has now moved on to provide the world with over 20% of the total uranium in use. Nuclear power is beginning to gain steam as talks of new energy initiatives are taking place all of the time. With the latest trend being concerned with a company’s ability to “go green,” nuclear power continues to be a heavily discussed topic amongst analysts and scholars alike.
Potash was at the top of its game in 2008, as investors could just not find enough stock to buy up all at once. Unfortunately, 2009 was a down year for Potash, and the company’s stock price dropped tremendously. However, there is good news for prospective investors when it comes to buying Potash stock. With the price of fertilizers and feed products being raised worldwide, Potash is in a market where they too can raise their prices to recognize higher profits.
Canadian National Railway
The Canadian National Railway is a tremendous asset to the country of Canada in that it provides so much of the public transportation to Canadian residents that it is hard not to suggest that money should be invested in this company. With a great base of customers and a firm grasp on holding prime market share in the industry, Canadian National Railway would be a great Canadian stock pick for anyone looking to diversify their portfolio with something like a transportation security.
What are your best Canadian stock picks? Let other know in the comments so we can invest more profitably!