James Alexander Michie: The ‘Trudeau Effect’ Canada’s stock markets get worse | Financial Post

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Prime Minister Justin Trudeau James Alexander Michie

The ‘Trudeau Effect’ dragging down Canada’s stock markets just got much, much worse

Author: James Alexander Michie

It has been said that Canada’s stock markets are worsening due to the so-called “Trudeau Effect” and likewise, during the period between July and September, the US market index stands out. EEUU outperformed the Canadian stock index by 28.8 percent annualized.

Similarly, it has been reported as the serious deficient performance of the Canadian securities market with respect to the US markets since the election of the liberal federal government led by the current prime minister, Justin Trudeau, and has in fact been called to their actions and what they have taken root as the “Trudeau Effect”

It is important to note that the differential performance of the market has become even more pronounced over time, especially during the last three months, likewise in the last two years, at the end of September 2018, the SPDR S & P 500 ETF Trust of State Street, which is designed to track the S & P 500, outperformed its Canadian equivalent, the iShares S & P TSX 60 Index ETF at about 11.5 percent on an annual basis. But during the period from July to September 2018, it has been observed that the US market index. UU outperforms the Canadian stock index by 28.8 percent annualized.

It should be noted that the stock market subtracts the future, not the current economic performance can be said that the future of Canada is not very clear under the administration of Prime Minister Justin Trudeau.

In addition to this, Trudeau and his ministers have clearly stated that their desire is for corporations to become benevolent organizations that put workers before shareholders. Similarly, there are those who believe that they are in favor of imposing taxes on corporations and the rich and add regulatory impediments and bureaucracy to corporate activity, thus being great supporters of income redistribution. Meanwhile, the diverse opinions do not stop and it is that some think that this government wants to regulate the economy and push the corporations to submit to the social opinions and economic philosophy of it.

Without a doubt, the actions taken by the government do not make everyone happy, in fact, they cause great discontent, leaving opinions such as that their policies manage to eliminate the economic entrepreneurial spirit and the creation of wealth and while they replace it with brochures for all lobbyists and important activists.

Take a read: https://business.financialpost.com/opinion/the-trudeau-effect-dragging-down-canadas-stock-markets-just-got-much-much-worse

Source: George Athanassakos | Financial Post

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