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Jonathan Wellum: Canada vs. U.S. Stocks: Where Investors Should Put Their Money

4 snips
Aug 20, 2025
Guest
Jonathan Wellum
In a deep dive with Jonathan Wellum, CEO of RockLinc Investment Partners, listeners explore the stark contrasts between Canadian and U.S. stock markets. Wellum highlights the U.S.'s exceptional depth and technology dominance, while Canada leans heavily on commodities, making it cyclical. He discusses the impact of currency swings on returns and shares valuable insights on tax considerations for cross-border investments. Plus, discover hidden treasures in the Canadian market like Cameco and Franco-Nevada, and hear about Wellum's current allocation strategy.
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INSIGHT

U.S. Market Size Dominates Opportunity Set

  • The U.S. market is vastly larger and more liquid than Canada, creating a much bigger opportunity set.
  • Liquidity and market depth in the U.S. make it the natural place for many Canadian investors to look south.
INSIGHT

Canada's Market Is Resource And Bank Heavy

  • The TSX is highly concentrated in energy, materials and banks, which makes returns more cyclical.
  • Sector composition explains much of the performance gap with the U.S., which has larger tech and healthcare weights.
INSIGHT

U.S. Tech Concentration Drives Returns

  • The U.S. dominates technology because capital and talent gravitate there, fueling companies like Microsoft and NVIDIA.
  • That tech leadership drives productivity and market returns that Canada cannot match at the same scale.
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