You’ve read a lot in this newsletter about boycotting U.S. goods and travel as we fight our way through a trade war. But investing in the U.S. market stock market is different.
The stock market is anonymous – no one knows you’re selling your U.S. stocks, and no one cares that you’re not buying more. In-demand stocks will always have buyers.
Really, you’re hurting yourself when you avoid the U.S. market because you miss out on globally dominant companies in areas like technology and health care. The Canadian market is weak in both these sectors.
What are your thoughts as an investor on U.S. stocks? I ask this after receiving an e-mail from Oliver Hierlihy in Toronto. He wrote:
“Question for you: every week a couple hundred bucks from my paycheque is automatically invested into a diversified index ETF. During the trade war, should I consider stopping that, as it’s effectively investing in the U.S. economy? Long term, might not be so good for me, but short term, it’s the ethical thing to do, right?”
Mr. Hierlihy and I are keen to hear your thoughts. Send them my way at rcarrick@globeandmail.com and I’ll report back later on what people are saying.
Meantime, it looks like at least some investors are keeners about U.S. stocks. In a conversation with The Globe and Mail’s Jennifer Dowty, the chief market technician for CIBC said demand has been growing for Canadian Depositary Receipts. CDRs are versions of U.S. stocks that trade on the Cboe Canada exchange.
Callout
We want to hear from retirees who spend less than they can afford. You’ve worked hard to save for retirement, but are you hesitant to dip into those savings, even though you have enough? What’s holding you back? E-mail Globe reporter Meera Raman at
mraman@globeandmail.com to share your personal story.
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Rob’s personal finance reading list
Is there a way to buy Canadian cars?Flavio Volpe, president of Canada’s Automotive Parts Manufacturing Association, says in this Q&A that he “would be ashamed” to drive a Tesla. He also offers some thoughts for people who want to buy Canadian as much as possible in the vehicle market.
From potato chips to hardwareA list of products where Canadian brands beat their U.S. competition. I can vouch for Covered Bridge Potato Chips from New Brunswick. They’re the best.
Unhappy about housingIt’s not just Canadians who worry about housing unaffordability. This chart shows how pessimistic Europeans are about housing.
Three challenges for rookie retireesThe second item on this list jumped out at me – getting used to a new way of being paid. No more biweekly direct-deposited paycheques when you’re retired. Instead, your income will come through monthly payments from the Canada Pension Plan and Old Age Security, plus a pension if you’re fortunate. There will also be income from registered retirement income funds, and possibly income from non-registered investments and tax-free savings accounts. Also, you’ll have to keep track of tax owing rather than relying on your employer to deduct taxes off the top of your pay.
From our readers
Ask Rob
Question
How much should one pay for the consultation/portfolio review with a fee-based financial planner? When is your annual ETF review going to be published? Love your work!
Answer
Thanks for that. As for consultations with a financial planner, the cost depends on whether you just have a conversation or there’s a written report as well. Costs could range from several hundred dollars into the thousands, depending on the scale and thoroughness of the consultation. The six-part 2025 Globe and Mail ETF Buyer’s Guide opened last Friday with
Canadian equity funds and will continue on alternating weeks.
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
An illustration of how much weight various countries, Canada included, have in the global economy.
ICYMI
Why
landing a job is harder than ever (and what grads can do about it)
The
loonie’s very bad, no good past few months