As we approach the upcoming Canadian election, it is becoming increasingly evident via the polls that despite a challenging economic decade many Canadians remain resistant to change. This reluctance is not entirely surprising: people are inherently resistant to change because it disrupts familiarity, security, and routine.

Human beings are creatures of habit, and the predictability of life provides a sense of control. When change is introduced — whether in personal life, the workplace, or society — it creates uncertainty, which can trigger fear and anxiety. The brain is wired to recognize stability as safe and the unknown as potentially dangerous, making people naturally inclined to resist new situations, even if they may ultimately lead to positive outcomes.

Historically, significant positive transformations often occur during periods of upheaval when the status quo is challenged. However, if we resist rather than embrace the great unknown, we risk stagnation. Growth, both personal and societal, comes from adaptation and the willingness to explore uncharted territory. In times of crisis, it is not clinging to the past that saves us but rather the courage to forge ahead with new ideas and innovative solutions.

Unfortunately, we are witnessing a situation today where a large portion of the country is choosing to embrace the policies of the past — policies that contributed to our current economic struggles.

This includes the Mark Carney government’s commitment to maintaining Bill C-69, which puts constraints on Western Canadian crude oil and natural gas development. Additionally, there is the continuation of an emissions cap and an industrial carbon tax is still in place at a time when Canadian families are already grappling with affordability issues.

These measures raise serious concerns about whether they will alleviate or exacerbate our economic challenges, particularly as Canada continues to rely heavily on the United States. With GDP per capita remaining flat or even declining while our global peers experience growth, it is difficult to see how these policies will foster economic improvement.

As Canada stands at a crossroads, both politically and economically, the question remains: Will we continue to cling to the policies of the past, or will we embrace change and the opportunities it brings? The answer will shape not only our country’s future but also the financial well-being of its citizens.

Resistance to change is not only evident in politics but also in investment strategies. Investors often struggle to pivot away from familiar approaches, even when market conditions shift. For example, those who remained committed to a value-focused global market approach following the 2008 financial crisis significantly underperformed compared with those who embraced the high-growth U.S. market. Some argue that with the introduction of tariffs, capital is now beginning to flow away from the U.S., leading to a potential reversal of this trend.

Regardless of the direction the markets take, one thing is certain: the future remains uncertain and our investments must reflect this by being dynamic, fluid, and adaptable. For portfolio managers, this necessitates a continuous review of past strategies, identifying what worked, recognizing what didn’t, and adjusting accordingly. The ability to evolve in response to changing conditions is critical to achieving long-term success.

In today’s increasingly regulated financial landscape, the operational mechanics of managing an investment practice have also become more complex. Efficient systems and processes are now essential to freeing up time for portfolio management and client engagement. In an environment where performance is under constant scrutiny, leveraging available resources to optimize investment decisions is not just beneficial, it is imperative.

Just as investors and portfolio managers must recognize shifting economic landscapes and adjust their strategies accordingly, so too must voters. The same principles of adaptability, forward-thinking, and willingness to embrace change that drive success in financial markets also apply to governance and policy-making.

If Canada is to break free from its economic stagnation and create a more prosperous future, its leaders — and its people — must be willing to chart a new course. The decisions made in this election will determine whether we continue to lag behind or position ourselves for a more competitive and dynamic future. Change is not just necessary — it is inevitable. The question is whether we embrace it or let it pass us by, compounding the problems we simply refuse to recognize until the damage gets so bad that we’re leaving a real mess for the next generation.

Martin Pelletier, CFA, is a senior portfolio manager at Wellington-Altus Private Counsel Inc., operating as TriVest Wealth Counsel, a private client and institutional investment firm specializing in discretionary risk-managed portfolios, investment audit/oversight and advanced tax, estate and wealth planning. The opinions expressed are not necessarily those of Wellington-Altus.

_____________________________________________________________

If you like this story, sign up for the FP Investor Newsletter.

_____________________________________________________________

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters financialpost.com.