The Canadian economy is reasonably healthy today, but it is heading towards trouble. This is the fault of our politicians.  The Federal budget does not have one item to encourage investment.  Instead, it has attacked people who create companies and thousands of jobs.  

All of today’s levels of government should be using their increased tax revenue to pay down debt.  Instead, we have Ottawa, Ontario, B.C. and Alberta spending money like crazy.  Almost all the money is going to debt service and new social programs.  We support social programs but there are currently some that are in great need of more money, rather than making new ones.  One is our medical system. Not enough doctors are graduating from med school.  As a result, clinics across Canada are forced to reduce their hours.  This makes zero sense since the medical profession saves the economy money.

All governments, except Newfoundland/Labrador, are trying to close down the energy sector - Canada’s biggest tax revenue generator.    Business leaders across the world see these falling numbers and wonder what is going on here. Once looked into it is clear Canadian energy companies are investing in the U.S., the North Sea and parts of Asia, with little staying in Canada. The Bank of Nova Scotia estimates that $10b worth of revenue is leaving our country.  Others report up to $30b.

Trudeau is desperately hoping B.C. wins the Trans Mountain Pipeline fight against Kinder Morgan.  The only reason he gave it green light it in the first place is because he had to approve something after cancelling the Gateway and West to East Pipeline.   Have you noticed that not once has he come out defending his decision, other than saying, half hardly, it will be built?    The cost today of the Kinder Morgan project is roughly $7.4b.  If they are forced to abandon this project, I guarantee that the next day billions of investment dollars will leave Canada and will not come back for at least a decade. 

Canada has become a poor place to invest. We have zero leadership.  The TSX index is trading at the same level as it was on August 19, 2014.  For the past few months the TSX has been the world’s worst performer.  This means investment money is leaving which equates to a weak economy.  The National Post recently stated “foreign direct investment plunged to the lowest in seven years”. Eventually this will lead to rising unemployment.  The Toronto Stock Market has done nothing since our Fairy Tale Prime Minister became leader.

Today we have low unemployment.  Unless there is a complete change in our government’s negative attitude, starting late this summer, unemployment will rise to double digits by 2019.

It is so important today to become debt free, keep X amount of savings in cash, and hold only ‘blue chip’ shares that will continue to raise dividends annually.  Canada has the best potential in the world.  Once today’s destructive politicians are booted out of office, Canada will boom.  The TSX will become one of the best performers in the world.  Patience is needed today.