“Many shall be restored that are now fallen and many shall fall that are now in honor.” (Horace). The father of value investing, Benjamin Graham, offered this quotation in his first edition of Security Analysis (1934) almost a century ago. Who can find a more apt commentary on the last two decades of company fortunes and stock price quotations?
The reason I’m optimistic about Canada’s future really lies in our federal/provincial system of government. Our federal system creates a kind of laboratory in Canada where provinces are largely free to create their own political and economic environments for the nation’s citizens and businesses. Over time, the provinces fostering more supportive, creative and enterprising environments should win out in attracting the more progressive, intelligent and productive businesses and people. Such environments then develop a virtuous cycle that further reinforces these positive trends in successive waves, improving certain provincial economies. Compare the political economies of Canada’s provinces across a few key metrics and you will soon see which provinces are which.
Canada should survive and thrive over time because of this positive dynamic system, despite any abuse it takes from periodic bad ideas.