Posthaste: 'Buy' Canadian is going strong except in one very important marketplace
Canadian investors have been snapping up U.S. stocks at an unprecedented pace since President Donald Trump took office in January, according to recently released data from Statistics Canada on international securities transactions.
'So what kind of U.S. assets are Canadians buying? You name it,' said National Bank of Canada economist Warren Lovely in a note on the data.
Most of the buying has been in stocks, but Canadians have also added $20 billion in U.S.-issued debt in the latest four months, most of it U.S. Treasury securities.
'In other words, Canadians have been helping to finance the deficit of the government that's repeatedly threatened our economic livelihood. Curious,' said Lovely.
On Monday, Ontario Premier Doug Ford renewed his call to buy 'Canadian-made everything' to pressure the United States to negotiate a trade deal.
'We're encouraging all provinces and territories: start buying Canadian-made vehicles, start buying Canadian-made everything — that will hurt more than anything at all,' Ford told reporters at the premiers' meeting near Huntsville, Ont.
The Bank of Canada's consumer survey out yesterday also showed that Canadians plan to keep up their boycott of U.S. travel and products. (See today's chart below).
It's a boycott that apparently doesn't extend to the stock market where Canadians bought $14.2 billion in U.S. shares in May alone.
Meanwhile, foreign investors are pulling back from Canadian equities. In May, non-residents cut their holdings of Canadian securities by $2.8 billion, the fourth straight month of divestment.
Foreigners are still buying Canadian bonds, but stocks not so much.
'For the first time on record (back to 1988), the first five months of the calendar year produced no net foreign buying of Canadian portfolio assets,' said Lovely.
May marked a turnaround for stocks on both sides of the border after three straight months of decline. America's S&P 500 rose 6.2 per cent from the end of April and Canada's TSX was up 5.4 per cent, said Statistics Canada.
The S&P 500 has hit record highs, but so has the TSX, climbing to 27,000, a 9.3 per cent gain since the beginning of the year, said National.
National Bank still advocates being overweight in Canadian stocks, and stands by its allocation of 21 per cent Canadian equities, 15 per cent U.S. stocks, and 3 per cent each to foreign equities and emerging markets. Fifty per cent fixed income and 8 per cent cash round out the portfolio.
The outperforming sectors on the TSX this year have been materials, consumer discretionary and banks, they said. The laggards have been health care, energy, consumer staples and real estate.
Though President Trump's threat to impose 35 per cent tariffs starting Aug. 1 is hanging over Canada, National economists say the outlook for the TSX is 'not entirely bleak.'
A trade deal, which would be positive for the economy and corporate profits, is still possible before Ottawa tables its fall budget.
The economists are also encouraged by what they call Make Canada Investable Again — Prime Minister Mark Carney's business agenda which includes efforts to reduce red tape and revive business investment.
to get Posthaste delivered straight to your inbox.The trade conflict between Canada and the United States continues to affect what Canadians buy and where they spend their vacations, the Bank of Canada's consumer survey revealed Monday.
Half of consumers said they plan to cut their spending on U.S. goods and vacations south of the border. About 60 per cent say they plan to spend more on goods made in Canada and a third plan to spend more on vacations within their own country.
'I won't be going to the U.S. anytime soon. I don't feel good about spending my money there,' one respondent told the central bank.
Price, however, still remains a key decider for many consumers, the survey said. Most Canadians said they would be willing to pay up to 10 per cent more for goods made in Canada.
'Ultimately, I'm going to do what works for my wallet. So, whether that's a Canadian brand, whether that's an American brand, I buy what works for my budget,' a survey participant said.
Ontario Premier Doug Ford, Saskatchewan Premier Scott Moe and Alberta Premier Danielle Smith will sign a Memorandum of Understanding to build new energy and trade infrastructure at the premiers' meeting near Huntsville, Ont.
Earnings: Canadian National Railway Co., General Motors Co., Coca-Cola Co., Halliburton Co., Lockheed Martin Corp., Equifax Inc., Baker Hughes Co., Capital One Financial Corp., Texas Instruments Inc.
Canadian auto dealership chain on the hunt to buy competitors, dumps U.S. laggards
Japan's bond market is flashing red. Here's why investors should pay attention
Bank of Canada says inflation expectations easing as businesses hold off passing on tariff price hikes
Millions of Canadians who want help managing their money seek out the services of a financial adviser. But the term itself refers to a wide variety of professionals with different specialties. And, depending on where you live in Canada, it can be used without specific qualifications, expertise or certifications. The Financial Post breaks down what a financial adviser can do, what credentials you can check for and how to find the right fit for you. Find out more
Send us your summer job search stories
Recently, we published a feature on the death of the summer job as student unemployment reaches crisis levels. We want to hear directly from Canadians aged 15-24 about their summer job search.
Send us your story, in 50-100 words, and we'll publish the best submissions in an upcoming edition of the Financial Post.
You can submit your story by email to fp_economy@postmedia.com under the subject heading 'Summer job stories.' Please include your name, your age, the city and province where you reside, and a phone number to reach you.
Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course).
McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily.
Financial Post on YouTube
Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more.
Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.
Cracks widen in Canadians' record-breaking wealth creation
Food manufacturers take drastic measures to fight U.S. tariffs
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
3 minutes ago
- Washington Post
Trump's latest trade deals don't make America stronger
President Donald Trump announced bilateral trade deals this week with Japan, Indonesia and the Philippines — three of America's most important allies in Asia. The United States will impose 19 percent tariffs on Indonesia and the Philippines and a 15 percent tariff on Japan. In return, each country has agreed, at least in principle, to make it easier for U.S. companies to sell products in their markets.
Bloomberg
33 minutes ago
- Bloomberg
Trade Deals Will Be Major Driver of Sentiment: Ronner
DWS Global Equities Senior Portfolio Manager Madeleine Ronner says in the short-term, markets will concentrate on having certainty on trade deals than the actual tariff rates. However she cautions investors should not be too euphoric as a 15% tariff rate is quite high. She speaks to Bloomberg's Joumanna Bercetche on 'Daybreak Europe.' (Source: Bloomberg)
Forbes
33 minutes ago
- Forbes
From Refugee To CEO: 5 Hard-Earned Skills That Helped Me Succeed
Hao Lam, entrepreneur, author, speaker, founder of Adaptively Education and Best in Class Education Center. Behind every business is a story, and mine started long before I ever opened an education center. When I escaped communist Vietnam and arrived in Canada as a refugee, I didn't speak the language and had very little to my name. What I did have was a fierce determination to rebuild. I put myself through school, moved to the United States, became a teacher and eventually built a national education franchise. The journey came with a lot of twists and turns and taught me more than just how to grow a business—it taught me how to lead one. Success isn't just about having the right idea at the right time. It's about developing the mindset, skills and habits that carry you through the uncertainty that comes with every stage of growth. Here are five hard-earned skills that shaped my journey from refugee to CEO—skills I often share with other entrepreneurs working to build a company grounded in purpose and growth. 1. Grit And Resilience: Keep Going, Especially When It's Hard I wish I could tell you there's a stress-free path to success. There isn't. You will be underestimated. You will frequently feel stretched thin. You'll need to find harmony between work and the other integral parts of your life. You'll face moments of self-doubt. Entrepreneurship, while a rewarding career path, is certainly not an easy one. What enables entrepreneurs to build something lasting is the ability to keep moving forward when things get uncomfortable or uncertain. Grit is about persistence, but resilience is about how you recover when something doesn't go as planned. I didn't get here because I avoided hard things—I got here because I faced them, got knocked down and kept showing up. Resilience is built every time you choose to keep going when quitting would be easier. 2. Vision With Execution: Don't Just Dream—Deliver It's easy to get excited about the big picture. Entrepreneurs are full of ideas. But vision execution is where the real work begins. The entrepreneurs I admire most are the ones who can see where they're going and also put a plan in place to get there. They don't just talk about growth—they map it, test it, revise it and make it real. At my company, our growth wasn't accidental. It came from defining our 'why,' putting systems in place and ensuring our teams knew how to translate our vision into results, center by center and student by student, to achieve a collective win. If you're seeking sustainable growth, start with a clear vision and the operational discipline to carry it forward. 3. Connection-Centered Networking: Lead With Value, Grow With Others In the early days of growing my business, I made it a point to show up to conferences, local events and networking groups—anywhere I could learn and connect. But I wasn't there just to hand out business cards or gain a referral. I came to ask good questions, offer insight where I could and build relationships that mattered. The best networkers I know are subject matter experts who lead with generosity. They don't just ask, 'What can I get?' They ask, 'What can I offer?' When you build relationships based on trust and shared values, referrals happen naturally. Those same relationships often lead to mentorships and meaningful peer accountability. Opportunities open up because people know you're showing up with intention, not ego. 4. Humble Leadership: Lead By Listening One of the most underrated skills in entrepreneurship is humility. The moment someone assumes they know it all, growth stalls, especially when they become daunted by others who know more instead of learning from them. When I've been open to listening to other leaders, I've gained insights I might never have uncovered on my own. Some of the best ideas we've implemented at Best in Class came from team members, franchisees and parents who saw something I didn't. Being the CEO doesn't mean I'm always right; it means I'm always responsible for building a better company for those we serve. When we lead with vulnerability, invite honest feedback and create space for others to shine, we foster a culture of growth and success. This kind of leadership is foundational to a team that's engaged, resilient and rooted in shared values. 5. Accountability With Optimism: Know Where You're Headed, And Keep Believing It's Possible Entrepreneurship is full of detours and unknowns. But as I discussed in my previous article, if you're clear about your defined goals, you can course-correct without losing momentum. Setting SMART goals and reviewing them regularly—with mentors, my team and myself—has been instrumental in ensuring that my steps toward growth are intentional and never left to chance. At regular intervals, I ask myself, 'Am I moving toward the outcome I want or away from it?' But alongside structure, you need optimism. Optimism isn't blind positivity but a grounded belief that your work matters and that growth is possible, even in tough times like economic uncertainty or the kind of disruption we all experienced during the pandemic. An optimistic mindset doesn't just inspire, it sustains. It keeps you moving forward, even when everything else tells you to stop. Leadership Is Earned And Always In Progress I didn't set out to become a CEO; I set out to survive. But in the process, I discovered that the same inner drive that helped me rebuild my life could help me build something meaningful for others. Success doesn't happen overnight, and it doesn't happen alone. It comes from cultivating the right habits, owning your story and growing through every challenge you face. Whether you're launching your first venture or scaling your next one, focus on the skills that stand the test of time: grit, vision, connection, humility and accountability. These are more than traits—they're tools. And when you use them with intention, you'll create more than a business. You'll build a legacy. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
