Follow the Money All the Way to Carney's Canada

Matt, interesting column, lots of data in here.You follow the money and you found that it is actually going to Canada.

This is one of the greatest periods for overseas investment in Canada that we've seen in the century.And it may be unprecedented because, you know, we have to wait for the rest of the year.The short answer to your question is that money is pouring into Canada like we have not seen from everywhere.Stocks and bonds are the obvious beneficiaries.One example is there's this company in the suburb of Toronto called IMAX.You may have seen the hit movie Odyssey this summer.

Have you seen it yet?I have not seen it.

Did you travel across countries or even get on an airplane to see it in 70 millimeters?

I saw it with my grandchildren in a non -IMAX theater, but my team, which includes Xin Pei, who compiles a lot of the data that we share with you, we are planning to see it at an IMAX theater again for me this summer.But the point is that whether it's IMAX, Senebis, which is an energy company.Canada, since Mark Carney became the prime minister in March of 2025, has outperformed everyone in America and also the Eurozone and everywhere in the world.The 10 largest stock markets in the world, Canada appreciated the most, more than 40%.And we know the past year has been pretty good for stocks.Canada's done great.

It's bond market is also doing great partly because the inflation rate in Canada unlike the eurozone or America is Actually trending lower.Okay, and is outperforming both the eurozone and in the u .s Aside from the money coming in Canada is beloved when I say that if you go to atlas .Atlas, Canada is right up there with Switzerland as the most loved country in the world.in the world.And guess why?

Because of its policies being so reasonable to everybody else in the world.And where do you think that comes from?It comes from this guy, Mark Carney.Who is he?Well, he happens to be a Rhodes Scholar.He was a governor of the Bank of England as the first non -British citizen to do that.

He was governor of the Bank of Canada.He was running Goldman Sachs operations before he got to the Bank of Canada.So this This is somebody the world knows very well.He's very reasonable.He's very circumspect about you know, anything without having the data, the evidence, and everything else.And the world likes this.

And it now shows.

Full disclosure, also former chair, right, of the Bloomberg board.

He just happens to be a former chair of the Bloomberg board.That was his last job.He's done a lot.

But then he went to be prime minister.

Then he became prime minister.

Yeah, I guess that's what happens after you become Bloomberg.

But I knew him back when.

It's fascinating considering this is right, I mean, really the closest ally, right, in American history.We share the biggest border.Right, and we know it's been tense, and yet they're off and running in a big way.And they're moving on in terms of doing deals and so on and so forth.

I mean, look, I have to say tariffs, we all know, are taxes on consumers, and it should be said that way.And what has happened especially that is egregious to the United States is that we export a lot of booze.Okay, we're pretty good at that, you know, liquor and wine.California is hemorrhaging because provinces in Canada, not the federal government, but provinces in Canada, are so understandably annoyedthe US that they have decided to keep American alcohol off their shelves.And the California wine industry is just hemorrhaging at this point.

I mean, it's something like $500 billion we're talking about.So that's an example of how bad this is.And, oh, I forgot to mention, the energy company that is a top performer on the Toronto Stock Exchange, Sunofest, It is doing so well because 50 % of its revenues come from the U .S.and it's not included in the tariffs.And why is that?

Because energy is something that we need here to keep costs down.Right, exactly.

Matt, you remind us that it's the U .S.'s largest trading partner behind Mexico.And I'm wondering, should we think about it like a zero -sum game?Is Canada's gain the U .

S.'s loss in some of these cases?Without a doubt, not only having been our most steadfast ally in American history since Canada became a country separated from the Commonwealth, You know, so much of the U .S.depends on Canada in so many ways.And it's a symbiotic relationship.And right now, you know, the worst part of the bargain is actually south of the border, not north of the border.

And as long as this continues, that's going to be the case.

One of the things I think is interesting, Matt, and I think about this a lot in this time where we are with a certain administration, a certain set of policies, but I wonder about the lasting and longer term effect.And you include in your story that how Canada was looking to a non -US company when it was looking to buy as many as 12 new submarines.And I guess in the past that they would have looked to the United States.

Well, on submarines, probably not.OK.However, you're right, that is the biggest you know, military.for Canada ever.So it's significant that way.And when Carney made the decision to buy those German submarines from ThyssenKrupp this summer, You know, he did it with more than 50 % approval.

And so what's happening here is that Canada, and Carney specifically, is traveling around the world.He's connecting with just about every potential trading partner there is, which is something that his predecessors didn't really have to do.They didn't have to think about it.He's doing it.And this is going to pay off for Canada.It's going to get increasingly more of a partnership arrangement with countries around the world that it didn't have before, and that's because of Trump tariffs.

And the Mark Carney factor here, is it all him or is it the Liberal Party?

Canadians are like hobbits.They'll save the world for you.They're consistently underestimated.Carney has consistently been underestimated, certainly by Trump and his enablers, and he's somebody who does the work.And that's sort of what Canada is about.He does the work, whatever the work is.

And Canadians like that.They like people who have integrity, commitment, and gratitude.

Yeah, well, go figure.It seems pretty straightforward to me.