RE:RE:RE:RE:RE:RE:Be CarefulSo the team at CI Cambridge made the absolute right call to focus on US FINANCIALS, where they didn't have peak ROE, peak consumers debt ratios, peak housing prices and weak GDP growth.
CDN regulators like OSFI are in bed with the banks, as evidenced by the kid glove treatment they get, and i agree benefit from bailouts such as those announced by CMHC. But the banks are now beginning to lift mortgage rates in Canada, opposite the BOC cuts, due to higher risk in their mortgage books.
https://www.thestar.com/business/2020/03/28/as-the-central-bank-rate-plunges-some-consumers-are-paying-higher-interest-on-their-mortgages.html Look at the MORTGAGE REITS are freezing redemptions, because they can't price their books, made up of a variety of mortgages. Those investing in CDN FINANCIALS need to understand what is happening in the freezing up and repricing of DEBT. I suspect it will take a lot more bailout money from the taxpayer this go around and CDN banks are going to have a difficult time repricing their loan books for this new reality. THe stock market has figured this out, and we are only at week 2. Good luck.
https://www.bankofcanada.ca/2020/03/bank-of-canada-announces-additional-measures-to-support-market-functioning/ https://www.advisor.ca/news/industry-news/canada-life-temporarily-suspends-real-estate-funds/
https://ca.finance.yahoo.com/news/rent-wipeout-could-ignite-mortgage-100018722.html