Building Wealth

1 week ago | buildingwealth.ca | Gordon Pape

Based on everything we’ve seen and heard, there is no logic behind Donald Trump’s campaign to blow up the global trading economy. But he certainly has a flair for the dramatic in the way he’s going about it. The day after his infamous “Liberation Day” on April 2, the stock markets tanked. Then, more worrisome to economists, the bond markets did so as well, with sellers dumping US Treasuries in a massive sell-off.

1 week ago | buildingwealth.ca | Gordon Pape

By Gordon Pape, Editor and PublisherThe trade war is on. It’s just not clear from one day to the next which products are affected and at what rate. President Trump confirmed the implementation of a 25% tariff on all imports from Canada and Mexico on Monday afternoon. The stock markets immediately plunged and continued to slide on Tuesday, the day the new rules came into force. Then, on Wednesday, the President announced a pause in tariffs on the auto sector. The markets staged a recovery.

1 month ago | buildingwealth.ca | Gordon Pape

Q – Is hedging US stocks with Canadian ETFs a good way to protect against loss if the loonie goes down? – Ron L. A – If I understand your question correctly, the answer is no. If you own US stocks and the loonie goes down, the value of your American holdings will increase in Canadian dollar terms. The only reason to hedge US stocks is if you believe the loonie will rise against the greenback – which is unlikely as long as the trade war continues. – G.P.

Dec 17, 2024 | buildingwealth.ca | Gordon Pape

Donald Trump’s remark about Canada becoming the 51st US state with Justin Trudeau as its Governor was laughed off by those attending the recent dinner at Mar-a-Lago. “In a three-hour social evening at the president’s residence in Florida on a long weekend of American Thanksgiving, the conversation was going to be light-hearted. The president was telling jokes, the president was teasing us, it was, of course, in no way a serious comment,” said Public Safety Minister Dominic LeBlanc.

Dec 10, 2024 | buildingwealth.ca | Gordon Pape

Based on what we’ve seen in the three weeks since the election, the new Trump administration is going to be the most disruptive we have ever seen in Washington. Many of the moves won’t directly affect markets, such as the vendetta the President-elect is planning for the Justice Department. But some will spin investors’ heads. Tax cuts and deregulation will boost stocks, as they did in his first term.