Prab Sagoo, associate director at Nasdaq Advisory Services, explains in his weekly commentary how Canadian investors reacted to recent events on the global economic stage.
- Statistics Canada recently released data indicating that during the onset of the Greek crisis, Canadian investors rotated assets into emerging markets and Japanese equities.
- Japanese equities have continued to see an inflow of Canadian assets this year (+$3BN) as Abenomics started to bear some positive results (though this might reverse following the most recent weak economic data).
- Rotation into emerging markets indicates a continued push towards diversification and search for new avenues of stronger growth as U.S. and Canadian opportunities are now appearing more limited.
- Meanwhile, U.S. investors continued to buy Canadian equities, taking advantage of the 3% slump the TSX suffered in June.