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Canada -- a Great story according to the data

This morning, David Rossenberg provided interesting insight as to what is "turning foreign investors on" in Canada.  The entire document is worth a read, but there are two diagrams that say it all:



Only the Netherlands and Germany have a lower cyclically adjusted budget deficit -2.7% and Canada has by far the lowest level of net debt at 32.6%.  The second issue is that Canada not only is a better risk, but its risk is mis priced, it offers better yield premium than the US.




Finally, and this is just chart porn, since there is no honor in being "Natural Resources rich", Saudi Arabia is not a better people or economy because they sit on great oil and gas properties.  This in fact, has always been a Canadian weakness, we are not so good in trans formative industries we are good at extraction.  This implies that the value added is created elsewhere.


However, for foreign investors looking to increase their exposure to natural resources, Canada is an obvious investment destination.  In fact foreign investors have been flocking to Canada, investing more than $121 billion into the country (or 7% of Canada's GDP) over the past 12 months.

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