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Canadian stocks present the very best that the resource sector has to offer. While resource investing may not be for everyone, huge rewards await those who can tame their emotions. A bit of patience and unwavering faith in your well-executed bets can produce life-changing returns few will ever experience. Occasionally, you can even nail down returns so profound that most cannot even fathom the results. For those few who reap the fruit of such labor, generational wealth is a reality within the grasp of even average investors.
Canadian Stocks Offer A User-Friendly Environment
Canadian stocks on the Toronto Stock Exchange (TSX) feature many appealing attributes. For one, Canada offers a solid regulatory system that helps to bolster investor confidence. Consequently, a large presence of individual and institutional investors results in significant liquidity. Not surprisingly, access to the TSX is actually quite easy to obtain. Most major brokers can facilitate access to these stocks directly. For instance, and though this isn’t an endorsement, E-Trade offers foreign exchange access to U.S. citizens once the primary domestic account has been established.
Canadian Stocks And The Sub-Category Of Mining Stocks
Chief among the Canadian stocks that can deliver life-changing wealth are the miners. Give or take half of all publicly traded mining companies around the world are on the Toronto Stock Exchange. Warren Buffet recommends that you find a market you can become an expert in. You do this by simply learning more about it than nine out of ten people involved. The miners are a well-deserving category for developing such expertise. This is the sector that, due to massive volatility, can produce more four and five-digit returns than any other out there.
Canadian Stocks – Practicing What It Preaches
It’s actually quite suiting that some of the most exciting Canadian stocks are those in the resource sector. Canada is abundantly rich in natural resources. In recent times, the Canadian tar sands have been much talked about. This is even moreso true as oil prices increase and confidence in various supplies wanes. The tar sands are said to be the second largest reserve of crude oil in the world. Only Saudi Arabia reportedly has more oil reserves. As a result, it should come as no surprise that Canada is the greatest foreign supplier of oil to the Unites States. And they can easily outpace something like a gold ETF tied to physical bullion.
Apart from oil, Canada boasts vast quantities of other key resources. Canada produces more uranium than any other country on Earth. It also has strict reinforcement measures to help ensure that all the uranium it sells is used for power generation, which seems to “complete” the resource cycle. Adding to its diversity, Canada also tops the list as the greatest producer of fertilizer for agricultural purposes. In times like these, key agricultural ingredients, such as potash, are highly sought after commodities.
In addition to these remarkable number one rankings, Canada also places in the top ten for other key resources. For instance, and not surprisingly since half of all mining companies are traded there, this massive country produces huge quantities of gold, copper, nickel, aluminum, and zinc. In fact, the Yukon is a fast-growing region of serious attention for a fleet of mining companies looking to exploit the great deposits there. Diamonds are also mined in notable quantities. On top of all the oil, you’ll also find natural gas. Lumber is produced is sizeable quantities. And you’ll also find Canada dipping its toe in agriculture with big wheat harvests.
Canadian Stocks And How Rich Rewards Await Early Arrivals
Junior resource companies offer a fascinating feature that primes them to be superior investments. Efficient Market Hypothesis theory anticipates that all known information about a given company is already factored into the share price. In other words, notice of impending patent application approvals, FDA approval, greater than expected earnings, and so on are already priced into a company. As a result, you cannot wait for the news to happen, because it’s priced into the stock from the moment it is known to be anticipated.
However, particularly with Canadian stocks in the junior resource sector, these companies are so small that they are off the radar of the prying eyes of multitudes of analysts and money managers. See, even if the fund managers took a big position in such a company, they are so small that it could be hard to liquidate a massive position. What this means is that you can often find solid companies that are mostly undiscovered, in comparison to something like popular silver ETF funds. These hidden jewels can be chronically on sale, with a share price below what the company is actually worth. In fact, there have even been Canadian stocks selling for less than the actual cash on the books.
