Hello everyone,
A dicey month indeed full of volatility and strife, and miraculously the S&P 500 gained 1.69% while the TSX gained a measly 0.17%. at the time of this writing (September 24, 2026). For a few weeks, it was looking like a major sell off thanks to rising oil and the AI debacle at OpenAI and Anthropic. The world gets over it quick, I guess. While I would want to elaborate on the whole AI thing, I think there's better things happening in Canada to talk about.
As you may have all heard, the federal government has introduced Bill C-39, the Building Canada Strong Act, a broad package intended to make it faster and more predictable to approve and build major projects in Canada (maybe our local roads will get fixed….lol). Unfortunately, one important point is that, as of September 22, 2026, the bill has not yet passed Parliament. It received first reading on September 21st and is currently at second reading in the House of Commons, so its final form and timing may still change. (https://www.parl.ca/legisinfo/en/bill/45-1/c-39).
That all said, the direction of the proposal is encouraging for Canada over the medium to long term. The government is trying to address a long-standing concern that Canada has valuable resources and strong businesses, but major projects can take too long to move from an idea to construction. Long and uncertain approval periods raise costs, discourage investment and make it harder for companies to plan. Bill C-39 proposes clearer coordination and a one-year timeline for certain federal reviews and decisions while maintaining environmental standards and upholding Indigenous rights. (https://www.canada.ca/en/one-canadian-economy/news/2026/09/government-of-canada-introduces-legislation-to-transform-how-canada-builds.html).
Why does this matter to investors? When companies have greater confidence about how long an approval may take and what requirements they must meet, projects become easier to assess, finance and build. If the proposed changes work as intended, investors may be more willing to provide capital to Canadian businesses and completed projects could begin producing revenue and cash flow sooner. Over time, that could support stronger company earnings, improved productivity and potentially better valuations for selected Canadian assets. This all sounds amazing, doesn't it? But wait, there's more!
The areas most likely to benefit are energy, mining, critical minerals, infrastructure, transportation and industrial companies - pretty much everybody in Canada, lol. Pipelines, power projects, mines, ports, railways, roads and trade corridors are expensive and can take years to develop. More coordinated federal approvals and firmer timelines could reduce uncertainty around these projects. The Bill includes proposed changes involving impact assessments, the Canadian Energy Regulator, transportation infrastructure and ports (https://www.parl.ca/Content/Bills/451/Government/C-39/C-39_1/C-39_1.PDF).
The government has also announced a separate Productivity Mega Deduction designed to encourage businesses to invest in Canada. Under this proposal, companies would be able to immediately deduct substantially more of the cost of eligible new capital investments, including certain mining property, oil and gas pipelines, software, technology and other productive assets. The government estimates that Canada’s marginal effective tax rate on new business investment would decline from about 13% to 6.4%, which could make new Canadian projects more financially attractive. I wonder if I can get that rate (https://www.reuters.com/business/canada-seek-private-investment-major-airports-says-carney-2026-09-15/)?
Together, these policies send a straightforward message: Canada wants companies to invest more money here and it is trying to improve both the tax treatment of new investment and the approval process for major projects. If businesses respond by increasing capital spending, the benefits could spread beyond the companies building the projects. Engineering and construction firms may receive more work, railways and ports may move more goods, technology providers may support new operations, and banks may benefit from greater demand for commercial lending and capital-markets services.
For Canadian equity investors, this could gradually broaden the market’s growth story. The TSX is often viewed mainly as a market of banks, energy companies, materials businesses and dividend-paying stocks. Those remain important strengths, but a sustained rise in business investment could add a stronger capital-investment and resource-development theme. Energy producers, miners, industrial companies, infrastructure operators and selected financial businesses could see better long-term opportunities if more projects are approved, financed, and completed. There may also be implications for other parts of a diversified portfolio. Stronger Canadian investment and growth could be supportive for the Canadian dollar over time, especially if the country attracts more foreign capital. For bonds, the result is less straightforward. Faster growth and heavier capital spending may place some upward pressure on longer-term interest rates, which can create short-term volatility for bond prices, although bonds should continue to provide income, diversification and stability within a balanced portfolio.
It is equally important to keep expectations realistic. Legislation alone does not generate corporate earnings, completed projects do! Bill C-39 must still move through the House of Commons, committee review and the Senate before becoming law. Even if it passes, investors will need to see whether approval timelines truly materialize and improve and whether companies are willing and able to fund construction. Labour availability, financing costs, commodity prices, environmental requirements, Indigenous consultation, changing regulations and global economic conditions can all affect whether a project proceeds.
Looking shorter term, the proposals may mainly influence investor sentiment, a real market mover. Markets may become more optimistic about selected energy, mining, infrastructure, transportation and industrial companies, but prices can move ahead of actual results. Do you remember the dot com bubble? It means some investments could rise on expectations and later give back gains if legislation is delayed, policies are changed or projects do not proceed.
Over a three-to-ten-year period, the impact could be more meaningful. If faster approvals and investment incentives lead to greater spending on equipment, technology, infrastructure and resource development, Canada could benefit from stronger productivity, more employment, improved trade capacity (U.S.?) and higher economic output. That would provide a more fundamental reason for investors to maintain exposure to Canadian equities rather than relying only on short-term market enthusiasm.
The practical takeaway is not that every Canadian stock will benefit equally. Companies with strong balance sheets, experienced management teams, high-quality assets and realistic projects are more likely to turn a better policy environment into lasting value. In summary, my view is cautiously positive. The proposed reforms directly target weak business investment and lengthy project timelines, two issues that have weighed on Canada’s economic potential. If implementation matches the government’s goals, the changes could improve the long-term outlook for Canadian equities and selected businesses tied to resources, infrastructure, transportation, industrial activity, technology and finance. If approvals remain slow or capital spending fails to materialize, markets may eventually look past the announcements (https://budget.canada.ca/update-miseajour/2026/report-rapport/chap1-en.html).
And to end on a lighter note, investing in Canada’s next wave of major projects may require some patience. After all, even the strongest portfolio cannot make a pipeline approve itself overnight! Ba ha ha……
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