Part 7/8:
The political climate, particularly regarding U.S. trade and fiscal policies, remains uncertain. Rosenberg highlights potential negative repercussions of tariff escalations and their unexpected impacts on market equilibrium. The interconnectedness of Canada and the U.S. economies raises alarms about widespread repercussions should economic sanctions escalate.
This environment of unpredictability engenders a conservative investment strategy focused on capital preservation. Rosenberg advocates for maintaining liquidity alongside select opportunities in defensive sectors such as utilities and healthcare, along with emerging markets that present favorable valuations as compared to systemic U.S. stocks.