After more than a decade, the GAA team is making a shift back into Canadian assets. They see the push away from the U.S. as more likely a durable shift rather than a transitory phenomenon, potentially ushering in a new global investment regime.
Elbows have gone up in Canada and abroad in response to the dramatic change in the US policy environment. Markets have likewise become irritable. As investors, we must not overreact to the flow of breathless and often contradictory headlines. But it is also important not to underreact.
Where Canadian investors were once restricted, they’ve been spurred on to draw down their exposure to Canadian assets, in part due to strong U.S. investment performance, a volatile interest rate environment and acute macroeconomic headwinds faced by the Canadian economy.
