When we talk about the stock exchange market we generally focus on the huge and versatile US market. Investors tend to put their money on various sectors to ensure their security in the volatile market. Many stock markets which have the potential to become a huge market get the hit because of that. Toronto Stock Exchange, commonly known as the TSX Stock Exchange is a prime example of it. It is the second oldest stock exchange market in Canada and the third biggest in North America. However, it never got its due.
TSX Stock Exchange has two major industries enlisted and that is the biggest drawback it has. Energy and Financial Industries have the major chunks in the stock exchange. 22% of investment is for the financial market, 23% of Mining and 18% in Oil & Gas in TSX Stock Exchange market. But that doesn’t mean one should avoid one of the biggest stock exchange markets in the world. The investors must know few things about the TSX Stock Exchange that will make them rethink to invest in it.
Why you should invest in TSX Stock Exchange
It is considered as the safest market in the world. The traditional US market has been underperforming since a long time. However, Canada remains a strong country to invest due to the economic and political stability. You might consider the limitation of the market of Toronto as the hold back to investment. But in reality it is the brightest reason to invest. Canada has a huge amount of natural resources and that is why it is more focused on Energy. The demand of the energy is going to increase by a huge amount in coming years and the export of Canada will go beyond the traditional market. Canada is the biggest producer of Potash, second biggest producer of Uranium and the third biggest producer of the aluminum. It is also the third largest oil reservoir of the world. The banks of the Canada are considered most sound and effective and are one of the best options for investment. The future of investment looks nothing but bright in TSX Stock Exchange.
If as an investor you are yet to be interested in the Toronto Exchange then you might need some additional dosage of the facts. The dividends paid by the Canadian companies are much higher than the others in a different part of the country. The return on investment in Toronto Exchange has always been impressive and better than the traditional markets. It was more than 9% in 2014. The inflation of Canada remains under 3% and that attracts the investors even more.
As an investor, you must understand that there are many things that are to be considered before investing. Toronto Exchange has a lot to offer to the investors and potentially it has not been utilized well till now. So an investor must look for a futuristic option and settle for TSX Exchange.