The Stock Market and Canadian Economic Performance
Glancing idly at the numbers, I find to my slight surprise that the Canadian stock market (S&P/TSX) is now down about 25% from the May, 2008 peak, whereas the US stock market (S&P 500) is down by only about 10% from its peak in May, 2007. So, since the beginning of the crisis, owners ofÂ US corporations have done significantly better than owners of Canadian corporations.
I don’t want to argue that stock market performance is a very useful barometer of real economic performance. Still, this factoid is more than a little at odds with the conventional view that we are doing much better than the US, that our fundamentals are great, that resource dependency is a blessing and not a curse etc etc.