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What Beginners Should Know About Canadian Stock Market

 

For novices, the Canadian stock market can look scary. Investing in stocks has been hyped in many Hollywood movies and looks to lead the news cycle now a days. For the typical savers who are just seeking way to get started, the unpredictability of the market can really be overpowering.

We strongly believe beginners need proper Canadian stock market education & training to get started on the right note. Having a good insight about the nature of stock market in Canada is a vital 1st step for your investment adventure. Here is summary of the top 3 factors beginners must know before investing. 

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Expected returns:

Figuring out returns from stock market could help you make a decision whether it is worth putting your savings into stocks or whether you should go for gold or real estate. Also, realistic expectations will help you in creating a plan to attain your financial goals & set proper targets.

On average, the Canadian stock market has returned an average six percent compounded yearly. The iSharesS&P/TSX 60 Index, which tracks sixty largest stocks of the country, has delivered 5.8 percent yearly over the last ten years and 6.5 percent since its introduction in 1990. You can anticipate identical returns going forward. At six percent compounded yearly, any investment you make now could double inside twelve years.

Dominant sectors of Canadian stock market:

Having adequate knowledge about the dominant sector of Canadian stock market is another important factor. The dominant sectors have the largest impact on Canadian stock market performance & the country’s economic growth over the period of time.

Currently, the Canadian stock market is dominated by financial and energy stocks. Banks like TD Bank and Royal Bank are the leading corporations in Canada. Insurance & asset managers such as Brookfield Asset Management are nearly as large. Gas and oil giants like TC Energy and Enbridge are the 2nd largest sector.

Financial companies account for almost 1/3rd of the Toronto Stock Exchange’s 32 percent overall worth. Energy accounts for fourteen percent, whereas materials like gold account for 12.3 percent. Largely, the economy of Canada is reliant on energy exports and financial services. Nonetheless, technology is quickly gaining momentum in Canadian stock market. Technology stocks like Shofify are already the biggest drivers of stock market performance.

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Emphasizing on emerging technologies & asset-light financial companies could be the ideal tactic for investors who are new to the Canadian stock market.

Looking for help in Canadian Stock Market Education & Training? Train2Invest could be the right platform to get started. Visit http://www.train2invest.com for more information!

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