Between bad trade calls and looming deficits, Canada is driving money out just when it needs it most.

Canadians voted for relative continuity in April, but investors voted with their wallets, moving $124 billion out of the country.

According to the National Bank, Canadian investors purchased approximately $124 billion in American securities between February and July of this year. At the same time, foreign investment in Canada dropped sharply, leaving the country with a serious hole in its capital base.

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As Warren Lovely of National Bank said, “With non-resident investors aloof and Canadians adding foreign assets, the country has suffered a major capital drain” — one he called “unprecedented.”

Why is this happening?

One reason

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