Washington politics is influencing how Canadians invest, according to new survey data from Léger. More than four in five investors told the research firm that their decisions have been at least slightly affected by U.S. President Donald Trump’s policies.
Steve Mossop, executive vice president at Léger, delivered an advanced look at findings to attendees at the Responsible Investment Association (RIA) conference in Toronto on Tuesday. The study is based on a poll of roughly 1,500 Canadians conducted at the end of May.
“Trump politics have had a dramatic impact on investment decisions,” Mossop said. “Eighty-four per cent of investors say that recent developments in U.S. politics have influenced their investment decisions.”
One-quarter (24%) said Trump has influenced their choices “slightly,” 32% said “moderately” and 28% said “significantly.”
The study also found that 28% are considering upping their exposure to Canadian stocks. About the same number, 27%, have delayed major investment decisions. And 21% have increased their cash and other “safe holdings.”
Léger, which conducts approximately five million surveys annually, has already observed how Trump-era politics have influenced Canadian behaviour in areas such as travel and retail. Now, that influence is extending into investment decisions.
Meanwhile, many Canadians are mired in a sense of economic negativity. Mossop explained that since 2017, roughly half the country has told Léger pollsters that Canada is in a recession.
“We haven’t been in a recession,” he said. “Not even close to it, really. And yet, the perception is that we’re there.”
Léger’s full report will be released next week.
IE was a media sponsor of the RIA conference.