Why Trade Wars Could Correct Equity Markets

The video discusses current investing trends, highlighting the popularity of passive investing and the enduring relevance of value investing. It explores market dynamics, potential risks, and the shift from active to passive investing. The discussion includes potential market catalysts like trade wars and tax changes, and how these could impact investment strategies. The speaker also emphasizes the importance of sector concentration and downside risk. Finally, the video highlights Canadian investments, focusing on companies like Absolute Software and BSM Technologies.

What is a potential risk of the shift from active to passive investing?

• Overvaluation of certain stocks

• Decreased market efficiency

• Higher transaction costs

• Increased market volatility

Which event could potentially trigger a market valuation correction?

• Increased consumer spending

• A rise in interest rates

• Trade wars

• A significant drop in oil prices

How might changes in US tax rates affect the stock market?

• Decrease in stock prices

• Increase in stock prices

• No impact on stock prices

• Increase in market volatility

What is a key factor to consider when evaluating investment opportunities?

• Historical performance

• Company size

• Sector concentration

• Geographic location

Why might Canadian investments still be attractive despite market uncertainties?

• Undervalued companies

• Lower tax rates

• Higher growth potential

• Stable political environment