A Message to Clients
What is happening in Canada due to U.S. trade tariff threats will undoubtedly cause harm to many Canadians, and it will have a detrimental effect on our economy and the jobs that so many of us depend on. We are facing obstacles none of us expected.
However, in every challenge lies an opportunity, and we truly believe that good things are already coming from these trade tariffs. For one, we are seeing a move toward eliminating intra-provincial trade barriers, something that has long been a barrier to progress in our own nation. This is a critical step in ensuring that we can support and strengthen our own economy from within.
Additionally, Canadians are coming together in a way that is unprecedented. There is a growing, unified movement to 'buy Canadian'. We are embracing the power of our own products, services, and innovations. We are showing the world that, no matter the external challenges, we are capable of standing strong and supporting each other.
This is a moment of unity. Canadians are showing their strength, resilience, and commitment to one another. While the road ahead may be difficult, we are proving that we are a people who rise together.
Let’s continue to stay strong, stay proud, and keep supporting one another—because when Canadians unite, we can face anything.
For investors, we witnessed the stock market reacting to the shifting U.S. tariff situation and uncertainty it causes. It’s clear the headlines are dynamic and will continue to evolve. The ongoing back-and-forth regarding tariffs, along with Canada’s countermeasures, is expected to negatively impact Canada’s economy over the next two years. According to the Bank of Canada, these tariffs could reduce Canada’s GDP by approximately 3%, essentially neutralizing the growth anticipated without these trade barriers.
These developments contribute to broader market volatility, increasing the risks of recession and higher unemployment rates. This underscores the importance of closely monitoring trade policies and their broader economic implications.
For many publicly traded Canadian businesses, valuations are considered fairly priced providing investors good value in their Canadian portion in their portfolios. When facing a market correction, these quality companies could be considered discounted or ‘on sale’. Comparatively, sentiment for U.S. stocks, some are potentially overvalued. They too are quality companies, yet after a market correction they become more fairly priced.
Investors are advised to review their short and long term individual financial goals and risk tolerance, maintain diversified portfolios (in keeping with their personal circumstance) to navigate volatility. If your circumstances have changed, adjustments or rebalancing may be appropriate where your objectives or risk tolerance has changed.
On a more positive note, certain economic indicators and technological advancements offer optimism for a market rebound in late 2025, prevailing uncertainties related to trade policies and geopolitical developments contribute to a cautious industry sentiment.
As a reminder, the insurance companies we represent offer excellent products and plans that support investors in achieving financial security. The Portfolio Managers and support teams we work with are best in class. They are dedicated to selecting quality securities and companies for their funds that promote both short-term stability and long-term growth for investors.
