Episode 312: How Much Money Should You Have Invested In the Canadian Stock Market

2025-06-10

We're bringing back this episode of Think Smart with TMFG, where Rob McClelland and Mike Connon take a hard look at a common pitfall in Canadian investing: home bias. With many portfolios allocating around 50% to Canadian equities—despite Canada making up just 2.6% of the global market—they unpack why this imbalance could be holding investors back. Rob and Mike explore the risks of overconcentration, especially with Canadian banks dominating so many portfolios. They compare historical ret...

We're bringing back this episode of Think Smart with TMFG, where Rob McClelland and Mike Connon take a hard look at a common pitfall in Canadian investing: home bias.

With many portfolios allocating around 50% to Canadian equities—despite Canada making up just 2.6% of the global market—they unpack why this imbalance could be holding investors back.

Rob and Mike explore the risks of overconcentration, especially with Canadian banks dominating so many portfolios. They compare historical returns across global markets, including the U.S. S&P 500, and highlight how major pension plans keep Canadian exposure as low as 4%. From tax efficiency to better global diversification, they lay out why broadening your investment horizon might lead to better outcomes.

If you're rethinking your portfolio—or just curious about what the big institutions are doing differently—this episode is worth another listen.

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