Market Update Aril 3rd

Surprises

• Policy was much easier on Canada and Mexico than the market feared. Our dollar is up sharply.
• Policy was much harder on China, Vietnam, and the EU than expected. US consumers will pay a steep price if it stands. US market down sharply on this as is their dollar.

Implications

• Looks like Trump has put his worst case on the table now, especially regarding China. Likely to force a deal between the two. This is consistent with his usual method in these situations.
• We will likely see negotiations walk back some of these tariffs as time goes on.
• Many of the tariffs are not legal according to U.S. law and there will be legal challenges.
• China has retaliated with 34% duties on all U.S. goods and export controls on rare earth metals.

During times of economic uncertainty, money tends to flow towards conservative income paying investments. Our portfolios did very well in the lead up to the tariff announcements and we expect this to accelerate in the future as money seeks out safe haven investments. We will be looking to put cash to work in this area as market volatility continues.

Tchabushnig Wealth Group.

This communication has been prepared by Alan Tchabushnig and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes to be reliable, but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. It is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member - Canadian Investor Protection Fund.