Canadians inject more money into U.S. markets

TORONTO - Canadian investors are buying U.S. stocks at the fastest pace in at least six years after valuations for the benchmark Toronto Stock Exchange index rose to the highest level compared with American equities since 2002.

Money managers in Canada overseeing a combined $227 billion bought $288.7 million more of U.S. shares than they sold in the four weeks ending March 23, the most in any comparable period since at least 2004, data compiled by Emerging Portfolio Fund Research Inc. show. Companies in the Standard & Poor's/Toronto Stock Exchange Composite Index trade for 20.8 times earnings, 34 percent more than the S&P 500, data show.

The S&P/TSX beat the S&P 500 each year since 2003, rising almost five times as much, according to data compiled by Bloomberg. Surging demand for commodities drove up producers of oil, gold and copper and Canada avoided a banking crisis.

Bloomberg News Apr. 17, 2011 12:00 AM



Canadians inject more money into U.S. markets