The Canadian economy has overall been very strong. While Canada’s economy grew at a hefty rate, in comparison to the American rate. In the United States growth has been slowing as business continues to be rather cautious. Both consumer and business confidence in Canada are higher than in the US ,
Auto sales have been running at record paces , even as they weaken in the us. Clearly the dramatic declines in housing activity and house prices along with the surge in gasoline prices have precipitated belt tightening among North American consumers. As well , U.S. business spending on capital growth has been running at a very modest pace and banks continue to tighten credit standards as subrprime mortgages made to less than creditworthy households during the housing boom continue to sour.
Neverthless this can not go on forever . Foreign portfolio diversification is prudent.
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