By Ian Ardill
Everyone is thinking it:
“What will the second Trump presidency mean?”
It does not matter if you are pro-Trump or negative about Trump, the questions remain about how his presidency will impact so many aspects of our lives here in Canada. What will it mean for business? For investing? For job security, property prices, the Canadian dollar…the list goes on.
To answer these questions, I think about a home built in Canada. A home in Canada is built for the climate: sometimes cold, sometimes hot…it has to be ready for whatever weather comes. Here at Ardill Group, our way of building is to ensure our clients have a robust portfolio that (as our brand foundation says) aims to provide respectable returns regardless of market outcomes.
Here are three ways you can put a solid foundation in place:
1
Keep some powder dry. If you are investing in or intend to travel in the United States, or are buying from US suppliers for your business, make sure you have an adequate supply of both Canadian and US currencies on hand. There are more headwinds for the Canadian dollar ahead. Having a currency mix that includes adequate greenbacks will not disappoint you in this economic climate.
2
Spread around your risk by spreading around your portfolio. You may like Canadian banks, for example, and with good reason. But if you are concentrated too heavily in Canadian banks or other Canadian equities, you compromise your ability to de-risk our domestic economic and currency challenges.
To mention just one benefit of owning a balanced portfolio that includes sufficient US (and international) holdings, consider that as our dollar drops, a US stock that you own in Canadian dollars actually goes up in value (because the US dollar is now worth more compared to the Loonie).
As another example of the virtues of diversification, note that just because the Canadian economy might go into recession, it does not necessarily mean there will be a global recession. Thus, US and international stock prices may be relatively more attractive than Canadian holdings.
3
Take a deep breath. Could a Trump presidency cause Canada short-term pain? Yes. Tariffs and a recession are possible. But long-term, we are going to be fine. Our economy is resilient. We will figure out how to adapt, backed up by exports that the United States is in great need of, including oil and gas, precious metals, uranium, machinery and equipment, agricultural products, lumber, and much more.
I will add a fourth: call us, anytime you want to discuss. Our door is always open.
Ian Ardill, B.A., M.T.S.
Wealth Advisor
CEO, Ardill Group
Direct: 1 905 769 2004
Office: 1 905 907 7000
ian@ardillgroup.com