What to do after recent stock market selloff

Use recent market drop to increase equity exposure

  • Restrict new purchases to US equities
  • No signs of an impending recession.
  • Market Valuation correction only

Headwinds affecting Canadian equities

  • Ongoing NAFTA uncertainty
  • US corporate tax reform makes Canada less competitive
  • Canadian pipeline disputes between BC and Alberta causing Western Canadian Select crude prices to trade at a very large discount relative to West Texas Intermediate
  • Crude prices trending down once again on increasing US shale production

Reduce Canada’s North American equity weight to 40% with the US increasing to 60%

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