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Canadians’ Investment In Foreign Stocks At All-Time High

The amount of money Canadians are allocating to foreign securities is at an all-time high as investors buy U.S. stocks at a furious pace.

According to the latest data from Statistics Canada, investment in securities outside the country hit $29.4 billion last December.

That marks the largest ever purchase of foreign stocks and bonds based on records that date back to 1988.

The amount of capital leaving Canada comes amid a sustained rally in the U.S. stock market, with the benchmark S&P 500 currently at an all-time high.

The purchase of foreign securities by Canadians was concentrated in U.S. large-cap technology stocks and investment funds that track U.S. equity markets.

Of the $29.4 billion of foreign securities purchased last December by Canadian investors, a net $23.2 billion flowed into U.S. stocks, said Statistics Canada.

The money put into U.S. stocks during December followed a record level of investment in U.S. bonds last November as global bond markets rallied strongly.

On the flipside, foreigners had little interest in Canadian equities last year. Foreign investors were net sellers of $532 million worth of Canadian stocks in December.