Why the TSX is set to outperform U.S. stocks over the next 10 years

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It seems increasingly likely the bank and resource dominated TSX is positioned to outperform the tech-heavy S&P over the coming decade

In May, 2017, I was one of 30,000 investors who made the pilgrimage to Omaha, Neb., to listen to Warren Buffett at Berkshire Hathaway’s annual meeting. As I sat in the uncomfortably hard plastic chairs, bracing myself for the multiple hours of Q&A, it was the very start of the meeting that would stay in my memory.placed a spotlight on Jack Bogle, an investor whom he had consistently praised for his pioneering use of low-cost index funds. Although Mr.

According to the report, 52 per cent of funds in Canada underperformed their benchmark in 2022. This figure increased to 84 per cent over a three-year period and finally 93 per cent over the past five years. In the U.S., the study went back 20 years, and indeed even greater underperformance occurred, with 95 per cent of funds tracking the S&P 500 not meeting their benchmark.

In the past decade, the S&P has compounded at 13 per cent per year, easily beating the TSX at just 8 per cent. Ten years ago, the market valued the TSX at a higher multiple than the S&P , but now the TSX trades at 15 times trailing earnings while the S&P has jumped to 22.

 

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