One of the favourite ploys of (some) mutual fund salespeople, upon noticing that their client had borrowing power, was to recommend borrowing money at X per cent and investing in a fund with the prospect of making a return greater than the cost of money. This strategy worked well if the fund appreciated in value, but if it didn’t, the unhappy fund holder was left paying interest on a depreciating asset. This is usually not a recommended strategy, but this lesson seems to have been lost on Prime Minister Mark Carney, who wants to start a Canadian Mutual Fund, a.k.a. the Canadian Sovereign Wealth Fund. Given government’s record of picking winners and losers, eg. Northvolt, this fund does not appear to be a winning strategy and is likely to cost the Canadian taxpayer.