It’s no secret that US stocks have soundly outperformed their global peers for the better part of two decades, meaning that Canadian managers (such as DM) who’ve directed their foreign exposure to American names have been well-rewarded over time. The common answer for why this has occurred is that the US economy is more dynamic than most of the rest of the world and that the S&P 500 is populated with more innovative companies, valuable global brands, and effective management teams than other major markets. While this is true, not all of the S&P’s advantage can be attributed to corporate superiority.
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