Canadian stocks have performed poorly compared to their American peers in the past five years. In fact, the S&P 500 has earned double the return of Canadian equities in the past years as shown in the chart below:
Click to enlarge
Source: Yahoo Finance
One of the main reason for the poor performance of the market up north is that commodities did not do well during the same time period. As a commodity-based economy it is no surprise that Canadian stocks have under-performed so poorly.
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