How to ‘trade proof’ your Canadian portfolio without falling back on defensive stocks

Mattress to motor coach stocks are in favour, auto stocks are not.Postmedia Network

TORONTO — Canadian fund managers are crunching numbers to trade-proof their portfolios, as the threat of U.S. tariffs boosts the appeal of domestic-focused names and shares of companies that have production capacity in the United States.

The prospect of a trade war has rattled global financial markets, including the shares of Canada’s many export-driven companies such as those in the auto-parts, railroad and resource industries.

Canada’s benchmark share index has dropped 4 per cent this year, compared with a 0.5 per cent gain for the MSCI World Index.

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