Advisors confront home bias as Canadian clients shift away from US investments

Tim Nash, founder of Good Investing in Toronto, is encouraging clients to examine their portfolios through a national lens.  

“The greatest antidote to despair is action and doing something about it,” said Nash. “Divestment is one side of the equation. The other side is, ‘How do I redirect that?’ That’s where it can get very exciting in terms of this notion of impact investing.” 

However, advisors like Kelly Gares of Blueshore Financial in West Vancouver are warning against decisions driven by emotion.  

“Often, it’s a bit of an emotional response, this wanting to push back against this perceived negative push against Canada,” he said.  

While some clients express political concerns through financial choices, Gares points out the risks of home bias, particularly Canada’s stock market concentration in financials, energy, and materials.