All day on BNN we’ll be helping to get investors ready for the ups and downs of dealing with Washington’s new proprietors. The benchmark Toronto index dropped two per cent last week, most of it on Friday, amid uncertainty over the threat of U.S. protectionism. And that was as U.S. stocks climbed to new record highs.  

In fairness, we’re also being told index rebalancing was at work on Friday as investors prepared for Enbridge’s takeover of Spectra Energy to close.

One of the threats to Canada’s economy is the prospect of tax changes that could see a de facto border tax slapped on Canadian exports. President Donald Trump is due to address Congress tomorrow night and he’s expected to touch on plans for rewriting the tax code.

A continued rally in U.S. stocks, which has seen the S&P 500 index climb 22 per cent in a year, may depend on tax changes – with the threat of a selloff if Trump and his allies come up short. At 9:35 a.m. ET, we’ll be joined by OptionPit.com founder Mark Sebastian. He tells segment producer Robert Graham that the bull market, which turns eight years old on March 9, will fizzle if tax reform goes nowhere.

CANNABIS STOCKS PAUSE

Marijuana stocks sneezed on Friday amid fears that the Trump administration may crack down on the U.S. cannabis sector.  White House Spokesman Sean Spicer said "I do believe you'll see greater enforcement" although Beacon analyst Vahan Ajamian notes that as journalists tried to pin Spicer down on the matter, he “became increasingly non-committal.”

At 11:30 a.m. ET, we’ll hear from marijuana market watcher Khurram Malik, head of research at Jacob Capital Management.

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BNN ADVISOR: ROBO ADVISORS VERSUS THE REAL THING

Finding a hybrid model that works

The great debate: What happens when clients see their fees for the first time?

The great debate: Providing value for the dollars

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BUFFETT'S BULLETIN

And we’ll be sure to get our guests’ take on two sore points raised by legendary investor Warren Buffett. He said in his annual letter to Berkshire Hathaway (BRKa.N) investors that instead of paying fat management fees, investors should "stick with low-cost index funds."

He also faulted the practice of spoon-feeding analysts with earnings reports that don’t stick to accounting principles, warning that "a management that regularly attempts to wave away very real costs by highlighting 'adjusted per-share earnings' makes us nervous. That’s because bad behavior is contagious: CEOs who overtly look for ways to report high numbers tend to foster a culture in which subordinates strive to be 'helpful' as well… And too many analysts and journalists fall for this baloney."

At 2p.m. ET, we’ll ask Canoe Financial chairman Brett Wilson what he thinks of Buffett’s argument that handing cash over to a money manager is a good way to see it erode. Canoe offers a panoply of mutual funds so we’re guessing he disagrees.

And we’ll also ask about massaged earnings reports to shareholders. Meanwhile, Wilson tells segment producer Michael Chu he’s “dabbling” in private equity marijuana investing but  avoiding the publicly traded stocks for now. 

The average Canadian equity fund produced a 20-year annual average return of 5.8 per cent, which was sadly adrift of the 7.2 per cent delivered by the S&P/TSX Composite.

Well, someone has to pay for all of those lovely Lexus SUVs and agreeable homes in Toronto’s leafy Rosedale.

Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.