A diehard Canadian who may also be a fool.
The US market has outperformed decently in the last three, five, and ten years compared to the TSX, led largely by the large tech companies. The TSX lagged behind mainly due to the lack of technology names. That being said, we think the Canadian market offers some of the highest quality businesses with decent downside protection. The TSX could underperform in a bull market but could be more resilient in a market downturn, thanks to better valuations. But the main issue is Canada has too much exposure to financials and energy. If these sectors struggle it will be near-impossible for the TSX to outperform. Overal, we think exposure to the Canadian market still provides investors some balance in both up and down markets. Generally, historical periods of underperformance have been followed by a revision to the mean. For example, post the dot-com crash, the TSX did outperform for nearly 15 years.