Canada

Jonathan provides an update on Canada following strong performance from Canadian stocks last year. On a tactical basis, underweight Canada versus global ex-US on the expectation of tariffs targeting Canada and Mexico. Following a sell off, or if a trade war is avoided, investors should place Canadian stocks on upgrade watch with the goal of moving to a modest overweight versus global ex-US.

This Insight looks at what investors should do with CAD and fixed-income assets, given the rate cut by the Bank of Canada today.

Should investors take seriously the possibility of Canada becoming part of the US? We strongly argue that such a union is not in the cards. Conservative America will fight it tooth and nail, despite President Donald Trump’s suggestions. There is no mythical “conservative Canada.” The entire country is as liberal as the state of Vermont, with Alberta only as conservative as Minnesota. However, in the very long term, the probability is not zero.