Managing Canada in the context of the global economy is going to be a major challenge for the new government. The world is much changed since the last time that the Liberal's held power.
Canadians have come to enjoy one of the best standards of living in the world. While the net worth of the US "middle class" has been stuck over the last 10 years, the Canadian "middle class" has continued to move forward to catch up and ever so slightly surpass the US.
The domestic economy, however, is vulnerable to the high levels of household debt that has evolved with the record low interest rates and is in a precarious spot.
With global demand for Canadian commodities slipping as the global economy stalls and the Bank of Canada scratching its head as to what happens (and what monetary policy initiatives should follow) next, there is a great deal of uncertainty that "middle class" Canadians may not be completely aware of.
What Canadians have done is vote for change, but they may not necessarily realize exactly how high the stakes are. At risk is our very decent standard of living, which, up until now has been on an upward trajectory.
The new Liberal government will not only have the challenge of protecting those gains, but also allowing the Canadian standard of living to continue its growth path.
Lots to discuss on our weekly webinar today!
We will be recording the "live" version at / or about 3pm today to allow for the 4pm start of the Blue Jays vs. Royals game 4.
The recorded version will be posted on our website shortly after.
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist