A Worse-Case Outcome for Canada: Liberals Win but in Need of Support Yet Again from the Left-Leaning Opposition Parties

Liberals win a narrow race but need to team up for a majority…

Highlights

• Liberals win a narrow race but need to team up for a majority…

• … creating a headwind for GoC bonds but a tailwind for the loonie

• Investors seem to be neglecting the end consequences of Trump’s trade war

• Fed points to potential pitfalls in financial markets

Key Takeaways

• Liberals Win the Race: You have to give Canadians credit. They exhibited this uncanny knack to resist change and voted in a fresh face, but the same party that governed these past ten years over an unprecedented period of stagnant growth in the nation’s private sector capital stock, productivity, real income per capita, and a record-long string of net foreign direct investment outflows. Somehow, all of this managed to give the Liberal Party a fourth consecutive term.