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Unless Canada suddenly decides to stop speculating on housing and instead starts building out an innovative, diversified and vibrant capital market we don’t expect this to change.

Not only are we losing constituents in the S&P/TSX with 18 companies having left since the end of 2017, but we are also lacking in those segments of the market shaping the future direction of the global economy, such as technology. While tech companies currently make up 21.5 per cent of the value of the S&P 500, they are only a paltry 5.2 per cent of Canada’s biggest exchange. Of that, just three stocks — Constellation Software, Shopify and CGL — account for three quarters of the total value.

While many are singing the praises of Toronto’s tech scene, the fact of the matter is there are only 15 tech companies on the TSX to choose from versus 74 in the S&P 500. For some additional perspective, the value of the top two tech companies in the U.S. alone currently surpass the total market capitalization of the S&P TSX.

Meanwhile, despite their size and fears of an economic slowdown, many are still delivering impressive results based on the most recent quarterly earnings reports.

Microsoft Corp. continues to gain ground in its highly profitable cloud computing business, while Alphabet Inc. delivered on revenue growth and is using its impressive cash flow to undertake massive share buybacks. Apple Inc. had plenty of good news with wearables nearing the size of its older Mac business paired with impressive results in its high-margin services business.