I am sure you are hearing about Egypt and the uncertainty it is creating in the global financial markets. It is a constant reminder of the geo-political risks associated to those investing outside of Canada. Now let’s revisit why I continue to keep your investments in Canada. As early as this morning, the monthly trade data for Canada dramatically beat expectations and returned to a trade surplus due to soaring exports of crude oil and other energy products. Canada is the first of the G7 to return to a surplus, meanwhile our U.S counterpart is still grappling with trade deficits. Why would anyone want to deal with an oil producing country that is politically unstable when they can deal with Canada instead? Remember, Canada has the second largest oil reserve in the world. Let’s look at what happened earlier in the week. On Wednesday, EnCana Corporation (Canadian oil and natural gas company) sold a 50% interest in their Cutbank Ridge business in B.C and Alberta for $5.6 billion to PetroBank China. Look at what foreign companies are paying for our natural resources. This news has spurred some of the Canadian oil companies (Suncor, Cenovus, Canadian Natural Resources), that are in our portfolio’s, to rise in value. Bottom line, the World needs Canada’s resources.
Keeping on this theme, I enclose a link below from CNBC. It is an interview from Dennis Gartman of “The Gartman Letter”. I follow Dennis closely as he is an investor in global natural resources and commodities, and is an expert in these sectors. The reason why I am sending you this piece is he specifically mentions Canada and the benefits of investing there. Good news is we are already ahead of him. Please click on the link below:
http://www.cnbc.com/id/15840232?video=1784481819&play=1
