A consensus has emerged on what to do with the U.S. stocks in your investment portfolio.
In a recent newsletter, I passed along a reader question about whether holding U.S. stock market exposure is the ethical thing to do. A strong majority of the dozens of readers responded with a yes. “‘Ethical’ doesn’t pay the rent or for the groceries,” said one representative response by e-mail. “I’ll maintain my positions.”
A few readers took shots at Canada – one said investing in the U.S. market is the only proven path to prosperity. But most people simply said their financial needs are best served with some exposure to U.S. stocks. Here are some of their thoughts:
“Mr. Trump, too, will pass. Do not base your decisions on short term issues.”
“Investments within the U.S. stock market are essential. Diversification is necessary. Further, many large U.S. stocks allow and provide access for investment exposure in other countries.”
“Our investment returns are key to living a happy retirement and therefore our goal is to safely maximize returns in a legal manner. As a result, we won’t compromise the likelihood of an investment return because of the politics of a country’s ruling party.”
“Although I forego buying U.S. retail goods when possible during this tariff war, I reconcile buying U.S. equities (in addition to Canadian and international stocks) because I will be spending these funds buying Canadian good and services in the near future.”
“I think decisions should be made on the best long-term outlook for the investor, ignoring the current storm.”
“As much as it pains me in the short term due to Trump’s behaviour and although I am neither purchasing U.S. goods nor travelling to America at present, relative to investing I think decisions should be made on the best long-term outlook for the investor, ignoring the current storm.”
Given the discouraging U.S.-Canada trade outlook, the impulse to get out of the U.S. stock market right now is 100 per cent understandable. But as readers have demonstrated, there are excellent reasons for keeping a slice of your portfolio in the U.S. market.
From our readers
Do you have a question or comment for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
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