by Scott Ronalds
From our Quarterly Report:
I asked the team what our clients’ biggest concerns are these days. The response was unanimous — trade. How will Canada, a nation heavily dependent on exports, be impacted by global trade conflicts and the NAFTA negotiations. More specifically, how will the Steadyhand portfolios be impacted.
I’ll start with trade and then discuss our strategy more broadly.
Front page news items, be they political or economic, rarely have an impact on long-term investment returns. Trade is an exception to this. In our highly integrated world, changing the rules and putting up barriers will have an impact on economic activity and corporate profits.
Having said that, trade is complicated and dynamic (action prompts reaction). There are many variables to consider, including tariffs, currencies, input prices and competitive position. While we all agonize over who the winners and losers are going to be, the worst outcome is already playing out — uncertainty is impacting business and public policy decisions.
Read Tom's full Brief and the rest of our Report here.
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