Q: Can you speculate what might be in the minds of those who have been selling off goeasy very hard over the last couple weeks, presumably over the tariff situation? I stuggle to see the connection.
5i Research Answer:
We would expect it is more of a concern of a recession in Canada induced by tariffs rather than the actual tariffs themselves. A recession makes granting credit a more risky proposition, especially to non-prime credits. But GSY has managed prior cycles well, and remained profitable and still grew even in the 2008 financial crisis.