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Should You Change Your Investing Strategy in a High Stock Market?

The market is in its nine-year bull run. I’ll use the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) and iShares S&P/TSX 60 Index Fund (TSX:XIU) as representations of the markets, respectively.

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SPY Total Return Pricedata by YCharts

The annualized market returns have been about 9.5% for the U.S. market and about 7% for the Canadian market.

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SPY Annualized All Time Total Returns (Monthly)data by YCharts

It’s not surprising that the U.S. market has outperformed the Canadian market in the long run because the U.S. market is much more diversified, while the Canadian market is usually weighed down by commodity stocks, including mining companies and oil and gas producers.

All this means is that investors need to be extra careful in picking the right prices to buy those companies or the Canadian market.

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