Canada: three oligopolies in a trenchcoat.

Bank service charges and overdraft fees can infuriate consumers, and more choices could lower their temperature.

From the perspective of investors, though, Canada’s cozy network of oligopolies – in which a few players dominate one sector – can look very different. Slim competition can keep upstarts out and profits in, driving strong shareholder returns and attractive dividends over the long term.

“We have a handful of oligopolies that are able to fend off new entrants (whether regional or foreign) without needing to destroy profits for an extended period of time, or where we need a government financed solution,” Ian de Verteuil, head of portfolio strategy at CIBC Capital Markets, said in an e-mail.

https://archive.is/1BPVW

  • streetfestival@lemmy.ca
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    7 months ago

    Corrected title:
    Consumers [>95% of Canadians] may grumble [be increasingly unable to afford food and housing due to unchecked corporate greed], but these oligopolies are great for [making the already wealthiest <5% of Canadians and foreign] investors [even wealthier]