Q: There can be little doubt that investors, since the elections of successive Trudeau administrations, have become increasingly wary about sinking money in Canada. Outflows double inflows of capital and our dollar's value has fallen by 20% retarding ROI's for investors. What is 5i's outlook for the Cdn$ and investment going forward?
5i Research Answer:
Without getting political we will just look at the data. Our economy is weaker than the US. We are lowering interest rates faster than the US is. We have a large deficit and higher taxes. China's slowdown may hurt the resource sector. We have new political instability. It is hard to paint a bullish picture for the CAD$ in the next 12 to 24 months.