Wednesday, January 3, 2018

The Outlook for 2018 in Canada - No January Effect Here

Happy New Year.  It is the early days of 2018 and with all early January print (and non print) media, predictions are abound. 

It's always difficult to be in the role in portraying yourself as the holder of a crystal ball; however, as of New Year's day, Canada woke up to a new federal carbon tax (thank you Justin, McKenna), while in Ontario, a new day has brought higher minimum wages (thank you Kathleen) that are impacting thousands of small businesses across the province...overnight. 

While the banks, telecoms and REIT's are chugging along on our TSX and (paying some great dividends in some cases), Canada's bread and butter resource industries (mining, oil and gas) have no returns to brag about, not to mention a very real risk now of a NAFTA-less world and a house of cards real estate market.  As such, the question of how long legalized marijuana growing companies will be around (in other words, when will the bubble burst?) must be asked as it is the only bright spot on a publicly traded basis currently. 

As any curious neighbour would look over the fence into the adjacent backyard, Canada must wake up and look around to other countries and economies - other than the U.S.  Remember that looming NAFTA renegotiation?

Also of note, with Ontario elections coming up in 2018 (in six months) and federal elections in 2019, we are not far off to see the lingering effects of these impacts. 

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