Equity Market Investment in Uncertain Economic and Political Times

The threat of tariffs has loomed large over Canada since President Trump was elected and since his inauguration the landscape changes regularly – creating uncertainty that is taking a toll on markets and the economy.

Fluctuating markets and political dynamics are top of mind for everyone. Investors in ONE Investment’s Legal List Canadian Equity Portfolio can be reassured that during these uncertain times, our portfolio manager remains disciplined in its investment philosophy and process. 

Portfolio Manager, Guardian Capital LP, explained in a recent webinar, that it continues to focus on delivering a diversified portfolio of high-quality companies that can endure challenging environments. 

Tariffs would hurt some sectors more than others. For Canada, the resulting economic pain will highlight our overreliance on the US as a trading partner but also sharpen our focus to remove interprovincial trade barriers and re-orientate our exports toward a greater number of global partners. For Canadian companies, the opportunity to broaden their global customer base will enhance long-term prospects for them and their shareholders in the years ahead.

ONE’s Canadian Equity Portfolio is comprised of quality Canadian companies with solid growth prospects. They have proven management teams at the helm, solid balance sheets and a sustainable path of growth. Such companies have historically delivered solid performance for investors when markets moved higher on fundamentals, and preserved capital when markets declined. 

If investors remain disciplined, this downside protection can serve as a launch pad for future returns. Quality companies often emerge out of challenging environments stronger than their peers and positioned for growth as the economic backdrop improves. 

ONE Investment reminds investors that returns accrue over the long term. The ONE Canadian Equity Portfolio seeks to achieve long-term investment goals through a diversified and conservatively managed approach that complies with Ontario’s Municipal Act. The key to benefitting from the long-term returns is to remain invested.

The threat of tariffs should not be a reason to sell, but rather an opportunity to stay with Canadian investments. It demonstrates confidence in our economy's ability to adapt and thrive in the face of challenges and contributes to strengthening Canada's economic independence.

If you have any questions about the ONE Canadian Equity Portfolio, please contact ONE@oneinvestment.ca.