At the time of writing this article, Trump’s tariffs had been announced between the USA and Canada, then they were postponed for 30 days.  There is great uncertainty in Canada around our economy and the relationship with our significant trading partner south of the border.

As we look back at history, in times of great change, there are often great opportunities waiting in the wings, for those who see them and those that are looking.  

I think this is one of those times. 

The US market and overall economy is massive, much bigger than Canada’s.  What we are seeing in the States right now is a President who is determined to follow through on his main election platform, MAGA, which is “Make America Great Again”.  I think he is going to go to any lengths, to do whatever is in his power, to promote and build the United States economy.  This is clearly going to impact other countries in negative ways, but he is resolute in making a difference for the American people.  I believe in his mind this is his legacy.  Let’s face it folks: Trump 2.0 is going to be a pretty wild ride!

At this time of year, many articles are written about RRSP contribution limits and deadlines, along with percentages and dollar amounts that you can tuck away to reduce your taxes for 2024.  Although it is tempting to write one of those easy and safe articles, I think at a time like this, a time of great opportunities, it is more important to point out what is waiting in the wings, for those who are looking. 

Now don’t get me wrong, I don’t have a crystal ball, but I do have the mind of a Strategic Planner, and I am willing to share what I am doing for my clients that is making a difference. 

At BGIP.ca, we do investment management, life insurance, and retirement planning.  One of my Golden Rules in our business is that we don’t make any investment recommendations for our clients that we are not invested in ourselves.  That means my money is invested in the same place as my clients, and the same goes for the rest of our Team.

So where are we invested in right now, and why?

It is very likely that the United States economy is going to prosper under the current leadership of Donald Trump for the next few years, whether we like it or not.  Currently, we have approximately 50% of our assets under management invested in two funds that feature American companies.  Both of these funds returned over 30% in 2024, and both of these funds have a long-term track record of double-digit returns.

One of the funds is a “buy and hold fund”, which is primarily invested in the big technology companies in the US, the ones who were known for their cloud-based computer storage during Covid, which are the same ones that are changing the world with their investment and development in the AI (Artificial Intelligence) arena.  The other US Fund changes it up on a regular basis, seeking opportunities among the vast marketplace of US businesses.  During Covid, that fund was invested in companies like Netflix, Ulta (the largest beauty supplier in the USA), and Hilton Hotels.  All of these companies directly benefited from the various lockdowns during COVID-19; as soon as the restrictions were lifted, the share values of these companies soared.

Now, don’t get me wrong, I am not suggesting that we don’t invest in Canada and don’t try and support our Canadian economy the best we can.  But for now, our Canadian investments, which represent the other 50% of our funds under management, are primarily invested in Canadian Dividend and Fixed Income Funds, with a much smaller part in Canadian Equities.

So ask yourself this question: Where am I invested at a time like this?

If you have not made an investment plan or need help developing an investment strategy that aligns with your financial goals, make sure to book a chat with us: bigp.ca/contact

We are excited to invest with you. 

Brian Gribben

http://bgip.ca