Tory Majority - Implications

The big news in Canada today is yesterday's election. The nation is still divided in terms of the popular vote, but we now have a right-of-center majority in parliament and a very left-of-center opposition. Contrary to expectation the TSX Composite index and the CDN$ have been in the red all day. So what can investors expect?

The Tory government should be friendly to corporate bottom lines, with greater certainty around corporate tax policy, foreign and domestic investment, and fiscal stability. For now, however, it looks like sell in May; go away, is the order of the day.

GB