A Goldman Sachs sign is seen over its kiosk on the floor of the New York Stock Exchange.
Jim O'Neill, chairman of Goldman Sachs Asset Management, was in Canada last week and the investor found himself with nothing but nice things to say about the country, calling it "especially well placed" to take advantage of global growth and a "role model" for the fixes needed in many countries' fiscal systems.
Mr. O'Neill was up to visit clients, and in an e-mail afterwards, he recounted his observations. In it, he reflected on the changes in Canada in since he started at Goldman Sachs in 1995.
At that point, he was in New York and spending a lot of time with foreign exchange traders, just as Quebec was holding a referendum on breaking away from Canada.
"I lost count of the endless discussions about how Canada would soon break up and be bankrupt. Fifteen and a half years later, with the benefit of hindsight, anyone who would have invested in Canada as a long term investor would have been rather happy. Today, Canada is arguably the role model for all troubled major nations that need to do something about their fiscal affairs and healthcare and pension systems."
By investing in Canada, as well as other countries like Australia, "you gain exposure to some of the benefits of the forces driving global growth, good economic policies and, in most cases, highly credible governance. In addition, Canada seems to be especially well placed. If it weren't for its rather bleak winters, one could quite easily get carried away."
Mr. O'Neill even praised Air Canada. No jokes here about whether he's getting carried away.
"These days, Canada seems to be quite a remarkably vibrant place. Even my return flight to London on Air Canada was a positive surprise. We had nice comfortable seats that turned into flat beds, a perfectly cooled cabin, and pleasant service, none of which I remember having experienced before. Moreover, as other frequent travelers amongst you will know, this experience is not common on many airlines from North America and Europe."