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Correlation Snaps Between Emerging Markets and Canadian Stocks

Kristine Owram
Correlation Snaps Between Emerging Markets and Canadian Stocks

Canadian investors should buy emerging market stocks as they’ve stopped moving in lockstep with domestic equities, according to one of the top strategists at the world’s largest money manager. While emerging markets have increased their exposure to technology and consumer companies, Canada is still focused on the financial, energy and materials sectors, said Kurt Reiman, chief strategist for Canada at BlackRock Inc. The gap between the S&P/TSX Composite Index and MSCI Emerging Markets Index is one of the biggest on record. "Investing in emerging markets today gives Canadians access to sectors that are underrepresented in Canada and also to the theme of the emerging market consumer," Reiman said in a phone interview Friday.