Northern Tiger.
That's what Derek Holt, economist, Scotia Capital Markets, is calling Canada these days, thanks to a long list of strengths that continue to make investing here a solid opportunity.
"[The Canadian dollar's] 25% y/y appreciation against the USD has generated stellar returns to those who can take the currency risk in their mandates, before even getting into the massive rally in risk-adjusted assets that occurred over this same time frame," he said in a note to clients.
"The case for over-weighting Canada is still compelling," he said in a note to clients.
Even after a 25% year-over-year appreciation in the Canadian dollar against the greenback and the massive rally in risk-adjusted assets over the same time frame, Mr. Holt said Canada continue to have much of what one would want in a global portfolio.
He expects the Canadian dollar will strengthen further against the U.S. dollar and other world currencies. At the same time, it will remain the "poster child" for fiscal health over the next five year.
Domestically, he expects corporate profits to rise in lockstep with the economic recovery and by 2012, he said Canada will "have a virtually unbeatable global corporate tax regime." Meanwhile, he anticipates productivity to improve and rival the U.S. in the coming years.
Other Canadian advantages cited by Mr. Holt include a best-in-class banking system, a relatively favourable regulatory environment, low political risk, and a highly educated workforce.