Love him or hate him, Trudeau is our leader for the next few years. I won't say 4 years because most minority governments last an average of 2 years. As an investor, it is important to know what direction our country is headed in and at least now we have that clarity. So the answer is basically more of the same of what we have seen from the previous 4 years of Trudeau's tenure. Unfortunately for western Canada that means more of the same slow-crawling growth. Let's face it, Trudeau is not going to be whistling a different tune and all of a sudden start throwing his support behind resource based industries. He had his chance when he had a majority government to basically do what he wanted, and that did not include helping out oil and gas. Now that we are facing a minority government backed by any of the 3 parties who oppose oil and gas, why the heck would he ever change his mind?
As a result, there is no point in sugar-coating things for western Canadians, the economy is not going to magically get better. Foreign investment dollars are going to stay on the sidelines until there is a clear-cut reason to invest in our country again. Now is definitely not the time. With respect to oil and gas we should be at a point in the market cycle where oil companies balance sheets should be improving and staff being hired. Thats clearly not the case. In fact, the opposite is true. Just today, Husky announced there would be hundreds of more layoffs. The Transmountain Pipeline delays continue, as do the Keystone XL and Line 3 expansion projects. Things will remain painfully the same for Western Canada for the foreseeable future.
So what can be done? Well, we are here to help. We want to help you get the same returns that we have seen on our rental property investments south of the border. What is going on down in Florida is the exact opposite of what going on here. People are moving there in droves. As are large corporations. Jobs are being created. Rents are rising and soon real estate prices will rise quickly too.
Politically speaking, Florida is in a much more enviable position than western Canada will ever be in. Remember the 2004 US presidential election when the vote was too close to count? Recall the state that came down to the final vote. Thats right, Florida! To give a comparison to our Canadian election, think of the way Quebec was treated in the months leading up to the election. Each of the major political parties knew that the election would be won or lost in Quebec. Billions of dollars of infrastructure grants were strategically announced in the months prior to the election. Now knowing about 2004 and the fact that a big US election will happen in November 2020, what do you think will happen? I'm pretty sure there's going to be a ton of grants announced for Florida too! Their economy is not going to be slowing down anytime soon!
Now is the perfect time to take advantage of the discrepancies between western Canada and Florida! Now is not the time to sit around idling in a negative investment environment. The election is over and it looks as though we've been given some lemons in western Canada. Let's go make some lemonade!