Canada accounts for only a very small proportion of global capital flows. So you can’t blame global fund managers for having only limited knowledge of our economy. But sometimes, a little knowledge is worse than no knowledge. And that fact is in full display these days as short Canada sentiment rises and the loonie is under attack.
We’ve spent hours over the past few weeks talking to blood-thirsty global investors that are largely influenced by Trump’s tweets on NAFTA and the Home Capital saga. The loonie and Canadian financials are off by roughly 3% recently.