Trader’s Narrative

We’ve already looked at the high correlation within the stock market that has caused most issues to move together as a herd. By now it should also be clear that this correlation is evident even across asset classes, providing a binary market where risk is either on or off.
Below is a grid covering 31 asset […]

By several measures, the Canadian real estate market has the characteristics of a budding bubble. This is especially the case for the Vancouver market which has completely gone bonkers.
The Teranet–National Bank House Price Index measures Canadian home prices by tracking the repeat sale of homes through land registries and other publicly available data. Teranet, by […]

Jeremy Grantham dropped by FT’s offices to talk briefly about bubbles. The most important point he makes at the onset is that: “There is nothing more dangerous and damaging to an economy than a great asset bubble that breaks - and this is something that the Fed never seems to get.”
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We’ve already looked at the surprising strength in the Canadian real estate market which is causing many analysts to question if it is approaching extremes at which the dreaded ‘bubble’ moniker applies.
The latest report is from David Rosenberg and while it doesn’t outright label it as such, he manages to imply it as strongly as […]

While the Canadian banks were almost completely immune from the financial crisis that rocked most industrialized nations, its real estate market still took a hit along with everyone else.
But the fall in real estate value was shallow and short lived, especially compared to the US experience. And now, while most real estate markets around the […]