Carney Won
Going down in history
Why Alberta Now newsletter will soon be changing its name to “7 to 8 Figure Investors”
If you missed my previous announcement, you can read it here: https://www.whyalbertanow.ca/p/announcing-why-greenland-now
Apologies for the delay in this week’s newsletter. I’m in Dallas attending a conference.
In a historic election, Liberal leader Mark Carney won Canada’s Federal election
Photo by Carlos Osorio/Pool via Reuters
In less than 4 months since Trudeau stepped down as Prime Minister, we saw a complete 180 shift from Conservatives in a strong lead to losing the election to a “political outsider”.
Personally, as a Managing Partner, investor, entrepreneur, I’m big on fiscal responsibility.
Ask any business person, they will tell you how to run a successful business - make sure your income covers all your expenses.
This isn’t about profitability. This is about sustainability.
A business will not survive if a business constantly outspends their income.
It’s simple math.
As investors, we go where the wind is blowing
When the wind blows a different direction, we need to take stock.
Never go against the wind.
I like to road bike.
Ask any bikers, they will tell you how much more challenging and miserable a bike ride is when they have to bike against a headwind.
What does that mean now that Carney won the election?
Continued government spending
“to succeed in a crisis, you have to act with overwhelming force," Carney said at an announcement in Ontario. "In a crisis … the private sector retreats, and government needs to step up. Government must lead and catalyze private investment.”
https://www.cbc.ca/amp/1.7514504
Carney’s view of government is to play an active role in the economy especially during a crisis.
He has signalled many times that he views the tariffs and trade wars as a crisis time for Canada.
Carney isn’t Trudeau
Yes, Carney is carrying the Liberal flag.
If you’re a Trudeau Liberal, you will be disappointed with Carney.
Because Carney isn’t Trudeau.
As a matter of fact, he is a “liberal capitalist”.
His resume includes:
Goldman Sachs
Brookfield Asset Management
Bloomberg
On top of the roles in government:
Bank of Canada
Department of Finance Canada
Bank of England
As you can see, compared to Trudeau, he isn’t a career politician.
He is more center left than Trudeau.
He already canceled carbon tax and the capital gain tax increase initiated by Trudeau.
While I have my own personal preference when it comes to economic policy, I’m in the camp of “anyone but Trudeau”.
I’ll take a cautious partial win here.
What doesn’t change
In a recent newsletter from National Post:
All the parties had massive goals for building more housing and set targets that have never been met before by the construction industry.
The Liberals want to build 500,000 homes a year, the Conservatives wanted 2.3 billion homes in five years and the NDP wanted three million over the same time period.
Canada built around 240,000 homes in 2023, according to Canada Mortgage and Housing Corp. (CMHC) estimates, but the country only has the capacity to annually build 400,000 homes.
Regardless which party or leader getting elected, one thing that doesn’t change is the big incentives from the Federal government into housing development.
Expect big investments from the Carney government into more housing projects.
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I’ll be sharing more of my thoughts on what I think this means for Canada and investments in future newsletters.
Keep in mind, just because your party or candidate didn’t win, it doesn’t mean it’s the end of investing opportunities.
On the contrary, if you are happy with Carney getting elected, it also doesn’t mean Canada will be a great place to invest.
The economic reality is usually somewhere in the middle.
I know this may not be what both sides want to hear, but the future is always belonging to the ones who are willing to be flexible with ability to think critically and independently.
What do you think of Canada’s election?
What do you think of Canada’s economic and investment future under Carney’s new government?
I’d love to hear.
Reply and let us know your thoughts.
If you like my work, I invite you to share it with others.
Eric Chang
Dallas, Texas, USA
April 30, 2025
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