Canada a Net Importer for First Time in 32 Years.... Time to Buy?

For the first time since 1976, Canada is on pace to become a net importer rather than a net exporter. Imports were up 3.9% in November, led by energy. Exports were only up 1.1%, also led by energy. All told, the net deficit was $333 million (U.S.).

Bad news for Canada? Not so fast. The conventional interpretation is that it's better to draw in more dollars than it is to dole them out. There's a bit of a contrarian view of the data though.... that being able to afford to be a net importer speaks well of your economy's strength. With that being the case, perhaps something like the iShares MSCI Canada Index (EWC) would be an asset rather than a liability.

Bear in mind that the U.S. has been a net importer for decades. While the country eventually paid the price, it took decades for those problems to materialize. It was a great ride in the meantime.

Just think about the iShares MSCI Canada Index while nobody else is - the country's doing fine. It will find other trade partners while its biggest one (the U.S.) struggles with its currency and the economy.