Christian Hensley is a Canadian investor who has managed significant asset portfolios for some of Canada’s largest pension plans. He serves as a senior adviserThe global economy is at a turning point, as countries battle to contain inflation amid rising debt levels and geopolitical uncertainty. Canada faces economic adversity, but also a great moment of opportunity.
Well, for starters, the Toronto Stock Exchange is dominated by a few industries – natural resources and financial institutions collectively represent more than 60 per cent of its principal index. If you want to invest in health care, you’re going to have a difficult time – those stocks represent less than 1 per cent of the market. The technology and consumer sectors are similarly under-represented. This lack of domestic diversity forces domestic capital abroad.
First, let’s attack the lack of diversity within the Canadian market. Natural resources might not represent the most valuable or value-added assets of the future. We need to support research and development, attract global talent and invest in industries that will drive economic growth and prosperity for the next 100 years.