Canada is entering a period of slow growth, high debt, and persistent fiscal deficits that echo Japan’s “lost decades”, but with a key difference: abundant natural resources. While Japan’s stagnation was fueled by an aging population and scarce resources, Canada has energy, minerals, and a growing population, providing opportunities for investors who focus on hard assets and government-supported sectors.

Global markets are entering a decisive capital rotation. For more than a decade, institutional portfolios were dominated by technology and growth equities, underpinned by zero interest rates, subdued inflation, and cheap energy. That era is over.

Stagflation is no longer a forecast; it is here. Fiscal deficits are ballooning, inflation remains sticky, and growth is rolling over in almost every advanced economy, particularly Canada and the U.S. What is different this time is the structural policy backdrop creating demand that cannot simply vanish in a slowdown.