You shouldn’t have all your investments in the Canadian stock market.
If you were British, would you have all your investments in the UK market? What if you were Chinese, Brazilian, or Russian?
Would seem kinda risky, wouldn’t it?
The Canadian market is no different. Maybe it feels safer somehow because everything is in Canadian dollars and you’ve heard of or shopped at lots of the companies.
But make no mistake, having all your money in Canadian stocks isn’t a sound investment strategy.
It actually adds risk and is unlikely to provide the best returns over time.
It may feel safe, but it actually leaves you overexposed to a whole bunch of risks that you could easily avoid if you followed a more globally diversified strategy.