2 articles in a couple days re: Canada's fading status as "safe haven"
1. Bloomberg: Canada Loses Haven Status as Dollar Doesn’t Spark Exports
Jan 22, 2014
"Canada was the envy of developed economies following the global recession, boasting the world’s soundest banks and a robust housing market that helped push its currency above parity with the U.S. Those days are gone.
The dollar plunged to the lowest in more than four years today and returns on Canada’s benchmark stock index were less than half of U.S. equities last year, underscoring an economy beset by the slowest rebound in exports since World War II. Consumers are tapped out with record household debt and governments are more focused on erasing budget deficits than providing stimulus.
With the outlook for other major economies improving and “the lack of job growth and economic growth here in Canada, comparatively I think we’re going to be sub-par for a little while at least"
2. Yahoo (w/ Madani)Canada’s economy losing ‘haven’ reputation: report
20 Jan, 2014
An underperforming stock market, the falling loonie and the amount of money being pulled out of the country by foreigners are reasons to believe Canada may be losing its lustre.
“Attracted by relatively low government debt, a stronger economic recovery and its healthier banks, foreign investors took a shine to Canadian assets in the aftermath of the financial crisis,” said Capital Economics analyst David Madani in a new report.
“More recently, however, those assets appears to have lost their shine a little, as Canada's safe haven appeal has waned.”
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