Client Update 02.01.17

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The fallout from the US election is still being played out. Early optimism has benefitted financials and the materials sector, but we prefer to keep our powder dry and not sell just yet. We see opportunity in acquiring more core holdings after an expected  slingshot drop in the TSX on knee jerk reactions regarding trade policies (not a bad thing). Canada stands to keep or increase trade globally as a gateway into what we see as relatively undisputed access to US Markets.  Right now we are reviewing a new position in Genworth Mortagage Insurance. We anticipate a continued slowdown in homes sales which will reduce the liability on insurers. Once the impact of new mortgage rules have worked their way through the system we will open a position.

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