 |
Canada is entering a challenging economic period. Growth is slowing, household debt is rising, and government finances face pressure that will likely influence policy for years. Yet within this uncertain landscape, Maria Goldstein, Senior Portfolio Advisor at BridgemontEquity.com , sees something most investors overlook. Opportunity created by falling borrowing costs.
Goldstein believes Canada’s softer financial conditions are part of a wider cycle. The country relies heavily on credit consumer activity, and as economic momentum cools, interest rates inevitably adjust downward to support borrowing. While this environment can create strain for households, it also opens a strategic window for investors who understand how to use cheaper capital effectively.
“When borrowing becomes easier, it creates a chance to reposition,” Goldstein says. “Periods of low rates are not just about reducing debt. They are also moments to capture opportunities outside the local market.”
Canada’s Strain, and What It Signals
The signs of stress in Canada’s financial system have been visible for some time. High housing costs continue to weigh on disposable income. Business investment has slowed. Provincial budgets are tightening. Consumers are cautious, and private sector growth remains uneven. These forces shape the kind of policy decisions the central bank must make, eventually translating into softer interest rates.
Rather than viewing this as purely negative, Goldstein suggests investors should understand the broader implications. Lower rates do not only reflect weaker domestic conditions, they create conditions that allow well positioned investors to look outward. Borrowing becomes cheaper. Leverage becomes more accessible. And the cost of capital falls just as global opportunities begin to open.
Using Lower Borrowing Costs as a Strategic Tool
Goldstein emphasizes that borrowing during a weak economic cycle is not reckless when approached thoughtfully. It can be an effective tool for investors seeking exposure to markets with stronger growth profiles, better currency stability, or more attractive yield structures.
In her view, investors often focus too heavily on domestic concerns and forget that capital is mobile. A downturn in Canada does not imply a downturn everywhere. Many global sectors continue to expand faster than the Canadian economy, including energy, technology, and emerging market infrastructure.
“With the right structure, investors can borrow in a low-rate environment and deploy capital where growth is still accelerating,” she explains. “It is not taking advantage of weakness. It is using the conditions the market presents.”
Why International Markets Look Appealing
Global markets often diverge sharply from Canada’s cycle. Nations with stronger fiscal positions, higher workforce productivity, or more dynamic private sectors can experience robust growth even as Canada slows. These regions offer compelling investment destinations for Canadian investors willing to step outside their comfort zone.
Goldstein notes that currency considerations, sector rotation, and global liquidity flows all play a role. Investors who remain focused solely on domestic assets risk missing the broader movement happening internationally.
Risk Management in Low-Rate Borrowing
Still, Goldstein acknowledges the importance of restraint. Borrowing cheaply is not a license to overextend. It requires disciplined risk management, diversified allocation, and an understanding of currency exposure. But when structured properly, low-rate borrowing becomes a strategic lever rather than a liability.
Goldstein believes the biggest barrier for Canadians is not fear of borrowing but fear of investing beyond familiar borders. Many families built wealth through local real estate or domestic equities, but the next generation is becoming more global.
She sees this moment as a turning point where the country’s financial challenges could redirect investor attention outward. And in doing so, Canadians may discover opportunities that reshape long-term wealth creation.
“We are entering a period where the smartest money will be the most flexible,” Goldstein says. “Canada’s financial strains should not discourage investors. They should motivate them to explore opportunities beyond the local cycle.”
Disclaimer: This article is purely informational and doesn't offer trading or financial advice. Its content is not intended to be investment advice. We do not guarantee the validity of the information, especially when it pertains to third-party references or hyperlinks.
Copyright (c) 2025 TheNewswire - All rights reserved.
