In the News

How Canadian Investors Can Seek Shelter From the Trade War

(Bloomberg) Seeking shelter from the escalating global trade war? For investors in Canadian markets, technology, health care and real estate stocks, along with government bonds, are the places to park money until the storm passes, strategists say.

Canadian firms with U.S. revenue will also benefit from a weaker loonie, which has tumbled more than 5 percent this year. The Canadian dollar slipped to a one-year low of 75.24 U.S. cents Tuesday, and is the second-worst performer among major currencies against the U.S. greenback over the past month.

Even the loonie may be finding a bottom, as most of the damage from the trade war rhetoric has been done, according to Juan Perez, a Washington-based senior foreign exchange trader and strategist at Monex Inc. He was among the top three loonie forecasters in the first quarter, according to a Bloomberg ranking. He sees the currency rebounding from about C$1.33 to the dollar.

“Tariffs are on and off depending on tweet storms,” Perez said. “Oil and commodities will catch a break in the second half of the year and propel the Canadian dollar to ranges of C$1.295-1.305 per U.S. dollar.”

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