With Donald Trump scheduled to take office as the 45th President of the United States in a few weeks, tensions and uncertainty are running high among global financial markets—and Canadians need to brace themselves for the unpredictable currents of the erstwhile tycoon’s regime, an analyst cautioned.
In a January 4 contribution for HuffPost Business Canada
, mortgage professional Atrina Kouroshnia stated that Trump’s appointment of Goldman Sachs COO Gary Cohn as the director of the White House National Economic Council will make waves in the global financial system, especially considering that Sachs stock has grown by 30 per cent.
“This move is relevant to Canada and our housing market insofar as the strength of the U.S. dollar affects us in myriad ways. If the American economy continues to react positively, a stronger U.S. dollar could send even more buyers north of the border,” Kouroshnia said.
“Since Trump's win, the U.S. dollar hit an 11-month peak,” she added. “In Canada, our aptly named Loonie has been left trembling as Canada holds its breath to see if Trump's stance on free trade holds. If so, the Loonie could plunge even further below its counterpart.”
But while this might spell less than good tidings for Canadians’ purchasing power, Kouroshnia noted that a weaker loonie along with Trump’s outspokenness on racial issues would make Canadian real estate more enticing for American investors.
“Canada's welcoming, tolerant stance in the face of Trump's increasingly [insular] sentiments could provide a breath of fresh air for our American neighbours,” she explained. “With a strong U.S. dollar, even the 15 per cent non-resident tax is not proving to be much of a concern for our friends south of the border.”
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