The growing secession talk in the western parts of Canada has likely been hitting Ottawa hard these days. And with good reason; without Alberta’s gas and oil operations, a major part of the Canadian economy vanishes with it. And the iShares S&P / TSX 60, (TSE:XIU) is reflecting satisfaction in a move to reconcile the alienated west, with shares up fractionally in Wednesday morning’s trading.
The recent election for Prime Minister seems to have sunk more holes in Canada’s social network than it has mended them, and mending holes is what Ottawa is apparently out to do, noted a report from the Department of Canadian Heritage. Among the things the report set out to do was fight a growing movement toward “polarization,” as well as restore lost trust in the government. Further, Canada was out to “…fight the swelling tide of misinformation and disinformation.”
A series of “divisive wedge issues” emerged as part of those considerations, including immigration, housing, inflation, and both sexism and racism, among others. And while Canadian fragmentation has, thus far, proven “…less toxic than what has been experienced in like-minded countries,” the need to patch up the holes before they become secession is likely front-of-mind in Ottawa right now.
Next Year, a Referendum
And given that Alberta is currently considering a referendum on whether or not it should actively secede from Canada for 2026, that makes Ottawa’s task all the more difficult for having a time limit. Word from Alberta Premier Danielle Smith makes it clear: “Should Ottawa, for whatever reason, continue to attack our province as they have done over the last decade, ultimately that will be for Albertans to decide.”
A petition to launch secession is currently circulating in Alberta, and should it get the necessary number of signatures, Smith noted that a referendum would go through. In the meantime, though, Smith is also working to build “greater autonomy” in the region, along with an “Alberta Next” panel that will give Albertans a chance to express their dissatisfaction, perhaps more specifically than they already have.
Is the iShares S&P / TSX 60 Index ETF a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:XIU shares based on 50 Buys, nine Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 15.88% rally in its share price over the past year, the average TSE:XIU price target of $42.85 per share implies 11.99% upside potential.
