Investors flock to Japan, emerging markets

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.

Highlights:

• Statistics Canada recently released data indicating that during the onset of the Greek crisis, Canadian investors rotated assets into emerging markets and Japanese equities.

Read: Correlation high between Canada, emerging markets

• 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.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.