Jagmeet Singh, the leader of Canada's NDP, has announced that his party plans to vote no confidence against the Liberal government. If this occurs, it could trigger an early federal election next year. This development is seen as positive news for Canada, which has faced nine years of economic challenges. A Conservative majority government could lead to tax cuts and policies that might stimulate the economy, potentially mirroring the U.S. model.
If this news is confirmed and not just another of Singh's speculative claims, a strategic trade would be to invest in TSX-listed stocks like Suncor Energy (SU), Canadian Natural Resources (CNQ), Canadian National Railway (CNR), Canadian Pacific Railway (CP), Fairfax Financial (FFH), and other undervalued Canadian stocks. This could shape up to be one of the best investment opportunities of 2025, provided no political delays disrupt the potential early election.
What are your top TSX stock picks if this scenario unfolds? This could offer better value than U.S. markets, given the abundance of undervalued stocks in Canada!