Mitigate the Chaos with Calm, Process and Discipline
Mitigate the Chaos with Calm, Process and Discipline
Chief Investment Strategist
Brian, Chief Investment Strategist and leader of the Investment Strategy Group, provides strategic investment and portfolio management advice to both institutional …
Brian, Chief Investment Strategist and leader of the Investment Strategy Group, provides strategic investment and portfolio management advice to both institutional …
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Yes, it is really happening (for now). We will let the political pundits argue how two countries with such economic, cultural, and historical legacy – let alone physical proximity - have both arrived at this conclusion to invoke tariffs on one another.
To that end, we believe it is prudent to not pass judgement, nor provide opinion of fault. From our perspective, the largest investment risk is forecasting duration of this impasse. Let’s be clear, tariffs could be gone in days or prevalent for months, if not years. Fear of the unknown typically generates chaos (in other words, volatility) – reactions that could likely bring opportunity in our view. As such, we are not adjusting our 2025 price or earnings targets for the TSX Index. After all, our process is fraught with discipline, patience, and faith in fundamentals. In addition, we are sticking with our overweighted sectors – Discretionary, Financials, REITs, and Technology. Why? The Canadian stock market is a market of stocks. We believe there are companies within Canada that can, will and should outperform the broader market over this malaise – period. Cue the broken record, “control what you can control.” How? Now is not the time for grandiosity and home runs. Now is the time to roll up your sleeves, find the most consistent earners, with the best product or services, with proven management teams that deliver fundamental results. Time for quality, cash, dividends, and real companies. And oh by the way, Canada has plenty of them.
