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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