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Can You Make Money On The Canadian Stock Exchange?Making money on the Canadian stock exchange requires differernt skills and knowledge to many of the other major markets. The only other comparable is Australia. Due to the vast natural resource wealth in Canada, the Toronto index has an abundance of mining and resource companies. These firms specialise in oil, natual gas, gold, silver, other metals and mining generally. Being able to value - or even understand - such stock takes new skills. In other markets, Hong Kong for example, the index is weighted in other ways. Hong Kong has many banking, financial and real estate companies which means that unusual weighting like this is rare, but not unique.
It is worth being clear about this, reading and understanding the documents produced by a mining company about the prospects for a piece of land is a real skill. Your author has had several of these pass his desk and they could, quite frankly, be in Russian or Chinese. Then it is also worth taking into account the difference in meaning for economic results. Since the economy is heavily weighted towards commodities, rising oil prices and inflation can actually be a good thing for the economy. In most other mature economies, rising oil prices can have a very negative impact. This means that stock prices and the main indices are likely to move in ways that investors may not expect. If you are thinking that this may make it possible to diversify a portfolio, you may well be correct!
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