Own Goal
Canadian investment in Canada
For months now, our news sources have kept reminding us of the trade war ongoing with the US. More recently, we’ve been hearing how some of us are spending less on US made food and drink, and how less of us are travelling to the US. Canada vs US is the economic flavor of the day.
But did you realize the trade war is far from being our longest standing economic problem? We, individually and collectively, are choosing to invest our savings outside of Canada at a growing pace. Two examples:
CPP
The CPP Investment Board has reduced their Canadian investments to just 12% in 2025, down from 16% in 2021. (1) What about your pension plan?
Statistics Canada
Stats Can reports investment in Canadian industrial machinery grew from 1981 through 2009 but has been on a steady decline through 2025. It’s now less than half the 2009 peak and 30% lower than 1981. (2)
How did we get here?
Our advisors, investment managers, pension managers are all required to make the greatest return for each of us from our invested savings. Investing more outside Canada was delivering you somewhat greater return. The advisors were just doing their job.
Our Own Goal
So, what’s our own goal? The unintended consequence is we’ve inadvertently scored on team Canada’s goal with this individual greatest return requirement. Our governments are struggling to maintain healthcare, education, defense and infrastructure, let alone fight a trade war.
Investing anywhere but Canada has created strong personal returns, at the expense of a weaker Canadian economy. This weaker economy means less government corporate income tax, and less government personal income tax from fewer, lower paying jobs. Hence the struggle to maintain our public services.
What can be done?
We can vote for governments (at all levels) that encourage investment in Canada through lower regulations. We can also contact our pension plans and voice our opinions.
To act directly and proactively, we can go to our advisors and tell them (remember, they work for us) we want to shift a greater portion of our investments into Canadian business and markets. It could be 2%, 5%, even 10% more of your total. Every bit helps.
To be more proactive, be specific to your advisor. Ensure they move your investments to productive Canadian business. This means focus on resources, energy, agriculture and manufacturing business. They are the producers of more and better jobs that in turn produce more personal and corporate income tax.
The Simple Choice to Be Prepared
· The greater good (strong economy & government services) via Canadian investment
vs
· Your personal good (maximizing your savings) via non-Canadian investment
What Canada do we want to leave future generations? How will you stop the Own Goals and balance between these choices?
1. Katusa Research, https://x.com/KatusaResearch/status/1961447556363555165/photo/1
2. NBC Economics and Strategy, https://x.com/Jkylebass/status/1967906751958880345/photo/1