"For whoever thinks that Canada is the new fiscal paradise, think again. Please read the above summary and compare to your own country taxes."

Eoin Treacy's view Thank you for this illustrative article and here is a link to the original from the Fraser Institute. Unfortunately, I do not know of a country, and certainly none in the G7, where the total tax burden has not increased since the 1960s. When I compare the cost of living in Canada, as detailed in the attached reports to that of the UK or Ireland, it comes in rather favourably. Both Mercer and the Economist Intelligence Unit regularly put Canadian cities at the top of the most liveable indices and towards the middle of the most expensive on a global scale which suggest a certain value for money.

There is no doubt that Canada has challenges to meet in containing inflationary pressures, particularly from housing on the West coast but also from rising commodity prices. Increasing deficits and the slow recovery in manufacturing are also headwinds However, Canada has a small, highly educated population with superior technical expertise supported by world class resources. There has been no particular need for a bank bailout and the deficits are at comparatively manageable levels. Compared with other developed economies Canada is in enviable financial health.

The S&P/TSX Index continues to hold above the psychological 12,000 level and would need to sustain a move below that level to question scope for some additional upside. Royal Bank of Canada, the largest share on the TSX, consolidated in the region of its high from September, unwound its overbought condition relative to the 200-day MA by February and broke upwards to new all-time highs this month. While the share is now somewhat overextended relatively to the MA, a sustained move back below the mean would be required to question scope for further upside.