Canadian Investment in US Stocks Hit Record in February Despite Trade Tension
Canadians poured a record amount into US equities in February, even as a movement to boycott US products and vacations gained momentum.
Investors acquired C$29.8 billion ($21.5 billion) in US shares and sold C$2 billion of non-US shares that month, during which the S&P 500 reached a record, according to Statistics Canada data on Thursday. That was a big turnaround from January, when Canadians sold US equities.
The increased exposure to US investments by Canadians is a stark contrast from a huge decline in southbound travel demand from Canada, and the campaigns to buy local products to protest against US President Donald Trump’s trade war and his threats against the country’s sovereignty.
The S&P 500 is down 14% since its record close on Feb. 19 in US dollar terms. American stocks have faced intense volatility since Trump’s April 2 announcement of so-called reciprocal tariffs on nations around the world, many of which he later delayed.
In February, foreign investors also reduced their exposure to Canadian shares by C$6.5 billion, the highest monthly divestment in the Canadian equity market since October 2007, the agency said.
