If Trudeau gets re-elected, he will continue to do whatever it takes to close our energy sector and scare away foreign investors.  He would prefer to see most parts of Canada use American, Saudi Arabia, Nigerian and Venezuelan oil.  He wants to help these countries create jobs and get rich off Canada.

Now that Bill C-69 is about to become law, no major development will be started because it makes Canada uncompetitive on a grand scale. It will take roughly 10 years and cost billions to get a project off the ground. What business would be crazy to waste so much time and money before a project under these conditions?  Look for unemployment in Ontario to increase over the years if Trudeau remains in power, even though it could be easily avoided by eliminating the bill because Ontario is the biggest supplier of steel and other needed goods for the energy sector.

With the Trans Mountain Pipeline (TMP) given the green light (for now), this should alleviate some pressure on the energy sector as well as give a good boost to the national economy.  Three native groups want to buy TMP to make money for their respective bands.  The Alberta government is offering them up to $1b in loans to buy the pipeline.  No doubt whoever buys the pipeline Ottawa too will offer cheap loans.

Today, the stock markets are near the end of the longest bull market on record.  We believe it will last until the end of summer. As a note of interest, two of the greatest stock market retreats began when the markets peaked on the last Friday of August. 

For the past few issues we have stressed building up a cash reserve.  We have been doing so with our finances.  Get rid of all debts.  Keep credit card limits to your monthly budget.  Eliminate and avoid a line of credit except to be used strictly for emergencies.  Sadly, because of bills C-69 and C-48, Guaranteed Investment Certificates will most likely outperform the Toronto stock market next year as capital flees the country, unless the bills are scrapped by a new government. 

Fortunately, we have invested for dividends because this will continue to be paid and the income will outperform the TSX.   At roughly 2.2%, interest rate yields are terrible for a 1-year term.  Still, investors should put money into insured Guaranteed Investment Certificates (GIC) to earn what little return on cash one can. 

Most of your equities should be Canadian dividend paying shares.  This is so you can take advantage of the Canadian Dividend Tax Credit.  Not to mention, with today’s interest rates, dividends paid are generally higher than GICs, resulting in a higher income. 

As in the past we prefer to wait for share prices to come to us.  Today, we see no buys.  Sit patiently and collect all those dividends.