The Globe and Mail reports in its Thursday, May 22, edition that the Trump administration's hostility toward Canada has prompted global investors to withdraw a record $35-billion from the Canadian stock market in the first quarter, as reported by Statistics Canada. The Globe's Tim Shufelt writes that this downturn is not surprising, given the economic instability caused by President Donald Trump's tariff threats and aggressive rhetoric, which have made Canada seem uninvestable to international investors.
Canaccord Genuity analyst Martin Roberge says: "You can't really blame foreigners for being gun-shy to invest in Canada. It's a situation people are not willing to bet on. They'd rather wait and see." Despite the exodus of international investors, the Toronto Stock Exchange saw minimal impact, with the S&P/TSX Composite Index posting a small gain. Canadian investors filled the gap left by foreigners.
Mr. Roberge says, "Patriotic investing" may have played a part. So outraged were some retail investors that they liquidated their U.S. holdings and redirected that money to Canadian companies. The main factor was the sell-off in U.S. stocks, with the S&P 500 losing 19 per cent in under two months.
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