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No Time Yet for Blame Game

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Insights and Market Perspectives

No Time Yet for Blame Game

Author: Greg Valliere

January 9, 2025

ONCE THE EMBERS COOL, THERE WILL BE PLENTY OF TIME, in the months and years to come, to analyze why fire hydrants ran dry, whether California was prepared, and why evacuation routes were clogged.

BUT THE INEVITABLE blame game has already begun, and this is not the time to politicize a disaster that will reverberate for years, as southern California rebuilds.

THE FIRES ARE STILL RAGING, so it’s premature to begin talking about a recovery, but soon it will be time to address one major variable — the need for tens of thousands of workers to help house people and then rebuild.

WHAT AN IRONY — there soon will be an enormous need for skilled labor, as a labor shortage persists. The idea of a massive deportation plan will be scaled back or killed. And it seems almost trivial to see Congress arguing about whether tax and spending bills will be packed into one piece of legislation, or two.

AMERICA HAS ALWAYS SEEMED to have a love-hate relationship with California, with its beauty and relaxed vibe confronting a U.S. aversion to activist policies and ever-soaring taxes.

THESE ISSUES will intensify over the next few years, crowding out efforts to cut taxes and reform tariffs. There will be plenty of time to debate these issues, and whether something like this devastation can ever be prevented.

CALIFORNIA HAS THE FIFTH BIGGEST ECONOMY IN THE WORLD, so a rebuilding is inevitable. But it’s too soon for a blame game — not until the embers cool.


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

For further information, please visit AGF.com.

©2025 AGF Management Limited. All rights reserved.

Written by

Greg Valliere

Greg Valliere

Chief U.S. Policy Strategist

AGF Investments

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