Before trade talks between Canada and the United States collapsed last week, I had been looking forward to reacquainting myself with Kentucky-made bourbon and making guilt-free trips to New York.

As a good citizen, I don’t want either of these luxuries right now. But U.S. stocks and bonds? Bring them on.

Many investors like to align their investment portfolios with their beliefs. This approach underpinned the responsible investing movement years ago, which then morphed into ESG – the environmental, social and governance principles that attempted to separate the good guys from the bad guys.

But this separation was never simple, which is why ESG has lost a lot of its urgency in recent years.

Consider that some investors may have avoided fossil-fuel producers for environmental reasons. But these same stocks have more appeal today, given that stable energy supplies are deemed essential.

Electric-vehicle maker Tesla Inc. offers another example of why separating good from bad companies can be complicated. It looked like a good stock for environmentalists years ago. But it became a political hot-potato after the company’s chief executive, Elon Musk, embraced MAGA.

A third example: Defence stocks may have been no-go investments for investors who didn’t like the idea of profiting from war and aggression. They look considerably better today, as liberal democracies – including Canada and much of Western Europe – bulk up their defence spending.

Which brings us to the latest twist in the continuing trade dispute with the U.S., and what we can do as Canadians to defend our sovereignty – and align our portfolios with our beliefs.

Ditching U.S. stocks and bonds might look appealing on the surface. If the response triggered a broad market decline, U.S. President Donald Trump might even get the message.

But as a loyal citizen who regularly scours my family’s consumption habits – I’m again looking at why we’re buying U.S.-made food for our dachshund – I draw the line at my investment portfolio.

There are four reasons for this shoulder shrug.

1. It is difficult to avoid U.S. assets.

About half of my liquid assets are invested in an asset allocation exchange-traded fund – essentially a fund of funds that holds global stocks and bonds. Over 35 per cent of the fund’s assets are U.S. stocks and bonds, which is only slightly lower than the 41-per-cent share allocated to Canadian assets.

Sure, I could sell the ETF. But then I’d be faced with reinvesting the proceeds in a diversified set of non-U.S. alternatives, which isn’t easy. Worse, that would leave me with a lopsided portfolio that would be ignoring the world’s biggest equity market.

Even if I succeeded in making this switcheroo, I would still be left with two pensions that – wild guess here – are going to be holding onto their U.S. assets indefinitely. So either way, I’m stuck with U.S. stocks and bonds.

2. A boycott won’t affect U.S. markets.

I know this might sound defeatist, but c’mon. While boycotting U.S. products collectively will put a dent in sales and send a message, it is hard to imagine the same effect on financial markets.

They’re too big. U.S. stocks alone account for 72 per cent of the MSCI World Index, a benchmark for 23 developed markets. Canada’s weighting sits at just 3.4 per cent.

3. Are we willing to accept lower returns?

Say what you want about baffling U.S. trade policy, spiralling government debt and dysfunctional politics. But U.S. stocks rock: The S&P 500 has delivered an average annualized gain of 13.4 per cent over the past decade, not including dividends, according to S&P Global.

Canada’s S&P/TSX 60 index is no slouch, thanks to a two-year rally in financials and energy stocks. Even so, it has trailed the S&P 500 with a gain of 9 per cent over the same decade-long period, in U.S. dollar terms. That’s a significant price to pay for a trade spat.

4. This too shall pass.

This may be my top reason for staying put in U.S. stocks and bonds: Who knows what happens next?

While many of us may be riled up right now, tensions could easily subside. U.S. midterm elections, the end of Mr. Trump’s second term or rising U.S. inflation could usher in a more conciliatory tone in trade discussions.

If the U.S. and Canada become close friends again, you just might want to own U.S. stocks and bonds. For what it’s worth, this final point is keeping our dog supplied with U.S.-made kibble, too – for now.

But that’s just me, a capitalist slug. What are your thoughts on owning U.S. financial assets in these fraught times? Let me know at dberman@globeandmail.com.