The economic landscape is constantly shifting, and recent developments have created both challenges and opportunities for investors and consumers alike. From trade tensions sparked by tariffs to a growing desire to support local economies, here's a breakdown of key trends shaping the market.
Trump's Tariffs Impact Markets
US stock markets experienced a downturn following President Trump's announcement of a 25% tariff on imports from Canada and Mexico. The tariffs, implemented on Tuesday, fueled fears of a broader trade war and negatively impacted investor sentiment. This move affected major stock indices, causing significant market volatility.
The impact of these tariffs is far-reaching, with industries preparing for potential economic challenges. As one market analyst noted, "The uncertainty surrounding trade policy is creating a climate of risk aversion among investors."
The "Buy Canadian" Movement
Amidst these global economic shifts, a trend towards supporting local businesses is gaining momentum in Canada. A recent survey by Narrative Research revealed that a majority of Canadians (63%) actively seek out Canadian-made goods and services. However, the survey also highlighted a significant level of confusion regarding what "buying Canadian" actually means.
"Many shoppers want to support local businesses, but they're not always sure what qualifies as 'Canadian-made'," says a representative from Narrative Research.
This presents both a challenge and an opportunity for Canadian businesses. Clear labeling and transparent sourcing practices can help consumers make informed choices and support the local economy.
EPR Properties: A REIT with Potential
Despite the market uncertainties, some companies are showing promise. EPR Properties (NYSE: EPR), a real estate investment trust (REIT) specializing in experiential properties, has recently reached a new 52-week high. EPR owns movie theaters, waterparks, ski resorts, and eat-and-play properties across the U.S. and Canada.
While movie theaters make up a significant portion of their rental income, EPR is actively diversifying its portfolio. Their eat-and-play properties, including tenants like TopGolf, offer a promising avenue for growth.
EPR offers a 6.5% dividend yield and is considered a long-term opportunity for patient investors. As of the end of 2024, EPR Properties owned 346 locations in the U.S. and Canada.
Ultimately, navigating the current economic climate requires careful consideration of both global trends and local opportunities. Staying informed and adapting to change will be crucial for success.