Pay AttentionSubmitted by MacDev Financial Group on June 11th, 2015
A recent article in the Financial Post stated some important reasons why the world should be paying closer attention to Canada as a world player in the financial markets and global economy. And we couldn’t agree more—with most of them.
First and foremost, Canada is an extremely diverse and multicultural country—a vast array of cultures, beliefs, nationalities and people. We are the epitome of global, located all in one place. This benefits our economy in a number of ways.
Compared to the S&P 500, Canada’s equivalent, the S&P/TSX Composite, regularly comes in higher when global growth exceeds 4 percent. (www.financialpost.com). Additionally, investors should see Canada as a ripe opportunity for growth, especially when it comes to real estate investment and the quickly emerging technology sector with successful startups such as Shopify, Waterloo, Open Text Corporation, and Y Combinator. Despite the decline of other Canadian tech companies like Blackberry, Canada remains strong in its efforts to compete globally in the ever-evolving knowledge market.
We also have a wealth of natural resources, and despite the recent drop in oil prices threatening our growth as a strong player in providing those resources to the global market, our access to the worlds largest freshwater supply will no doubt counter that deficit.
And when it comes to banking, Canada’s central bank has a slightly different approach than most of the world—and it has served it quite well since the 1990s, putting a formal inflation target in place and working to normalize markets. But here’s where our philosophies differ from those in the article.
Even with its forward-thinking strategies working to avoid, or at the very least minimize, damages from another financial crisis, there is still the threat of a financial crisis when it comes to relying on Canada’s central bank.
The track record for central banks, Canada’s included, is not stellar by any means. Over the last 15 years, central banks have dominated the global financial markets. And what have we received in return? Unparalleled inflation and a growing instability alongside their increasingly power-hungry stature.
We don’t think anyone should have to fall victim to another debacle such as that.
That’s why we feel the Bank on yourself system is the perfect strategy to ensuring your financial success while taking advantage of all these other benefits that Canada has to offer the global economy. You can secure your future and safeguard against potentially disastrous circumstances should the Bank of Canada falter.
The fact is that Canada is so much more than neighbours with the United States. We can hold our own, and then some, and it’s time the world starts taking note, and you start taking banking into your own hands.