02 March 2011

David Rosenberg : 15 Reasons to Love the Loonie

1. Better growth than in the U.S.A. and without need for stimulus
2. Responsible central bank, limiting growth in its balance sheet
3. Better fiscal backdrop
4. More conservative political environment
5. Triple the exposure to raw material than the U.S.A.
6. Investors get 115 basis points premium over Treasuries at the front end of the government yield curve
7. Canada in the top 15 net oil exporters globally … U.S.A. top importer
8. TSX dividend yield at 2.36%; S&P 500 dividend yield at 1.82%
9. Housing market in balance in most of the metro areas; no foreclosure supply coming
10. Inflation is low and stable with minimal risk of deflation
11. Economic recovery being fuelled principally by business spending
12. Corporate tax rates on a sliding scale down
13. Immigration and capital flows running at record levels
14. Vancouver rated top city in the world to live
15. Stable banking system with consistent dividend growth

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