Canada Housing is now at record levels. Housing in remote cities sell at prices equal to Honolulu, and Honolulu has had some Housing contraction in prices, but not that much, maybe 15%.
If there is another downturn, and deflation, Canada being big on commodities, will get crushed. And people living in $600,000 homes in Canada may find that it's even too cold to live in a tent city.
EWC is a Morgan Stanley index of 95 Canada based stocks.
Research and finding other more targeted stocks could be even more profitable. Let me know if you have any other ideas on how to play this one.
http://seekingalpha.com/article/170429-the-new-economy-and-canadian-housing-s-bubble-status
http://globaleconomicanalysis.blogspot.com/2009/11/canadian-says-short-canada.html
great article, thanks for posting it. I agree, I am in the process of selling 2 of my properties but in March/April time frame. Im assuming the market will start off strong in 2010, also falls in to seasonality and just before earnings. Lastly on record the best time to sell is Mar-June.
ReplyDeleteGreat article..... its pretty bang on
Thanks
Joseph
Toronto Canada