Canada

Basically, the report from TD highlights a paradox in Canada's economic relationship with the US. Being a net lender simply means we're sending more capital south than we're receiving.

Canadian money poured into US assets at a record pace in 2025, driven almost entirely by portfolio investment such as stocks and bonds. Investors were chasing higher US interest rates and a strong tech sector, even though the report notes Canadian equities actually had better returns. This is classic hot money flow, and it shows how deeply our financial markets are linked right now.

However, FDI numbers appear to be collapsing with investment from Canadian companies directly in U.S. businesses being at 2009 low. The report suggests trade uncertainty and tariff environment make businesses hesitant to commit long-term capital to projects down south.

The good news is that the data in the report suggests we might starting to diversify. While American FDI into Canada slowed, investment from other countries actually rose, and Canadian investment into other countries also jumped significantly. New trade talks with India and China will likely help the process along as well.

The takeaway for me is that our financial portfolios are still wedded to Wall Street, but our corporate investment strategy is starting to look elsewhere.