Osborne noted that markets are in an “unusual situation,” citing broad weakness in US assets including equities, bonds, and the greenback.
“That’s kind of unusual for markets generally,” he said, referring to the recent currency movement. He explained that when equity markets weaken, the US dollar usually strengthens as a safe haven asset.
He pointed out that the recent trend could significantly impact Canadian investors with US dollar-denominated portfolios.
“We’re not seeing that right now. The Canadian dollar is actually strengthening,” he said.
He noted that this trend can amplify losses for Canadian investors in US stock portfolios if they are not hedged for FX risk.
