Dylan Moran —
While most polls had been placing the Liberal party as favourite, no one expected such a resounding victory. The win by the Liberals is the first time a son of a former Prime minister has won the same seat. Stephen Harper’s Conservative Party got a beating, and that means their policies were not working. The victory by the Liberals comes after a sluggish performance in the economy. Although we Canadians managed to avert the last economic depression, economic performance has been slowing. Justin Trudeau, our new prime minister, successfully rode this wave of anger with a promise to pump some life into the economy. In addition, the drop in oil prices, where Stephen Harper’s major support base lies, contributed to him losing favor with the electorate.
Liberal Policy for the Economy
Trudeau has said his government will inject ten billion Canadian dollars to jump-start the economy. This policy has hit a cord with a lot of the voters. Most felt the future was bleak, after huge job losses in the manufacturing sector. Trudeau’s victory effectively ended investor fears on the future of the economy. Immediately after his victory, Canadian stocks rallied after months of slump.
Trudeau plans to spend billions of dollars on various projects. This could boost Canadian GDP by as much as 0.3 percent per year. Consequently, total economic growth could reach as high as 2.5 percent by the year 2016. Some estimates claim that bond yield could rise by as much as ten points. However, the proposed deficit, which the liberals intend to run, is unlikely to be huge enough to affect the borrowing in the market. However, the increased debt by Canada is unlikely to affect their credit rating. General economic performance in Canada, though sluggish, is expected to stay on the positive side.
One of the energy sub-sectors that will benefit greatly from the liberal victory is the renewables sector. Over ten years, Trudeau expects to have spent about twenty billion dollars in this sector. This will definitely see a rise in these stocks. Another sector that benefited from the liberal victory is the marijuana sector. Immediately after the liberal victory, marijuana stocks saw a huge surge. The Liberal party’s plan major spending will be on the infrastructure sector.
With billions being planned for this sector, stocks are expected to rise greatly. Construction and equipment firms are expected to benefit the most from the liberal victory. With the plan to tax carbon emissions, huge emitters in the oil and gas sector are expected to suffer the most. Generally, most investors view Trudeau as a welcome change to the economy. He has promised to pay more attention to stakeholders in this sector to boost economic performance.
Opportunities for Binary Options Traders
One of the biggest beneficiaries from Trudeau’s victory will be binary options traders in Canada. Trading in Binary options is largely dependent on predicting stock market movement. The trade itself does not require a lot of initial investment. For instance, an investment in the stock exchange requires that one invests a certain minimum amount. The result of all these is that many people with cash are unable to utilize it to make money.
The Canadian economy was largely unscathed in the last financial downturn. As a result, most Canadians were left quite well off, with some cash at hand. One of the options available to individuals for their money to work for them has become binary options trading. Although it has been quite profitable already, the practice is expected to become even more profitable. The Trudeau victory will be bringing some much-needed stability to the economy, rendering it more predictable and therefore manageable for the average investor. One of the areas expected to benefit from this is the Canadian dollar. Over the past few months, it has been oscillating in an unpredictable manner.
Unlike the past government by Stephen Harper, Trudeau’s policy is deemed more predictable. One of the reasons the Harper government was voted out was that everyone had just had enough of his haphazard policy. On the other hand, the Trudeau regime is seen as more reliable and more business friendly. As a result, his government is likely to attract more investment from foreign sources. The result will be a more robust economy and more money for the middle class. The Liberal policy for the middle class is quite favorable. He has promised to cut taxes for them.
Fewer taxes for the middle class mean that they will have more money to spend. One of the ways people could utilize the available funds is to invest some of it in binary options – an investing instrument that yields returns as high as 85% on investments. This increase in binary options returns will coincide with increased stability in the economy. People who invest well during the Trudeau government could be set for life. Outside Canada, the Trudeau victory has positively affected other international stock markets. Generally, the economy is expected to become more predictable with the Liberal victory.
According to the Liberal party, a fear of spending is what has led to the sluggish performance. They argue that a government should not reduce debt just for the sake of reducing debt. If the spending will lead to growth, then the debt will naturally go down. This has formed the basis for the Liberal party’s policy. They intend to borrow and spend to boost the economy. With a ten-year bond yield of 2 percent or less, they argue that is free money not being utilized. In addition, this will increase the competitiveness of the economy in the end. A more efficient economy with better infrastructure tends to attract more outside investment.
Generally, binary options’ trading is expected to gain from the Liberal victory. Their clear-cut strategy is easily understood, and thus predicting stock market performance is going to become easier. Everyone has just had enough of the Tory’s indecision on major economic issues. It is important to note that their policies will not be implemented overnight. The process of implementing these policies will take at least two years. However, the positive effect of their victory can already be seen. It is predicted that it will lead to a more predictable stock market.