As the Canadian economy is amidst one of its weakest post-recession economic expansions, a puzzle is why Canadian assets are putting up some of the best gains in the western world, and specific to Canada, the best returns over the past seven years.
Data from Bloomberg which looks at a total return from government bonds, stocks and the loonie are up 26 per cent year to date, and after New Zealand the Canadian equity market is the strongest of 24 developed markets they track.
In addition to equity market strength has been the resilience of the Canadian dollar, which has been the third strongest currency in the G10, year to date.
The obvious question is why, and the rationale seems to be one of a least dirty shirt scenario.
From an investment perspective and preserving capital, some money managers viewing the Canadian marketplace as a relatively safer bet when compared to weak growth abroad in Europe and Asia.