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Canadian Investors Didn’t Get the Memo on Weak Global Growth

Stocks most expensive in 14 years; bond issuance surges
M&A at a record as companies head for foreign shores

Bloomberg business news — Canada Investors Didn't Get Memo About Weak Global Growth

By

Eric Lam, Maciej Onoszko, Scott Deveau and Allison McNeely

October 3, 2016, 4:00 AM UTCUpdated onOctober 3, 2016, 1:45 PM UTC

The global economy may be stumbling along in one of its weakest patches ever but Canadian investors are wasting no time betting on a resurgence by piling into assets at home and abroad.

Signs of optimism abound across every market in Canada, even with annual growth in the world’s 11th-largest economy barely topping 1 percent. Stock valuations in the S&P/TSX Composite Index have surged to the highest in 14 years; mergers reached a record in the third quarter, and investors are soaking up bonds sold by Canadian provinces and companies.