RE:CM is a dog of a bankYou guys talking abour housing bubble have it all wrong. It has nothing to do with bubble or not it has to do with the mortgages that people have a tougher and tougher time to pay with the increase of interest rates. A quarter percent increase is murder in of itself. What the banks have are toxic mortgages that have to be dealt with and once they are the stocks will start to move up. As with everything in the market it likes stability but with all the interest rate hikes there isnt any and for those with mortgages it is murder each even quarter percent. This is what i was told by my family's wealth manager. Bottom line as long as this brain dead stupidity of raising rates to cool down an already poor economy grows the markets as a whole will remain in the shiate hole. Simply put the rates need to get cut not keep trying to raise them to get at a 2 percent target from a stated 4 percent. It was stupid to constantly talk about soft landings and not call things for what they were and still are since covid a recession. The stupid politicians thought that because people were spending lots of money after the pandemic was declared endemic or even while in locked down that the economy was robust yet the grocery prices soared ridiculously high on lots of items that on the low side were are 20 percent up while others 100 plus percent. Additionally take the stupidity of the jobs data. During covid lots of companies cratered got put out a lot of who survived used online coordination things like zoom exploded but there were still way too many lost jobs. For the idiots trying to see things in the stuck in the box assessment of contraction od 2 or 3 consecutive quarters but seeing "robust" growth in how we measure growth or not was and still remains false. The fact is to reach precovid levels economists were saying we are decades away now if that is the case and you are raising rates on a badly battered economy where there are supply chain and production issues what do the geniuses raising rates thinks will happen? Apparently they are neither geniuses nor thinking you get more costly goods groceries being a huge one along with housing which underscores the bank stock underlying bane. You dont bloody raise the rates in which those who have called it correctly is a recession the stupid geniuses were trying and still trying to bring down an already damaged economy by raising rates is just sheer stupidity and ignorance. There was no reason whatsoever to have raised them in the first place and every reason to do what China did cut them. Even if the economy so calls become heated unless there is massive items in the supply chain cut the rates. The grocers by the way have been constantly gouging people and an article of Canadian Governments working with Sobys Walmart and 3 or so other chains is a start but i disagree with their low assessmen5 of the inflation on the groceries overall which the article on Stockhouse from my recollection is saying 4 to 6 percent that seems extremely low when the lowest increase on most items is not less than 20 percent. Other things like i said near doubled if not more. Bag of 908 grams nachos were $4.69 or thereabouts now on average $8 to $12. Crackers no name ritz family size $3.68 to $7 to $9. Salsa big size $4.69 to $9 to $12. The smaller sizes work out more expensive. Spaghetti sauce 1.8 litres $4.68 close to $8. Lot of sauces are stupidly priced so i buy 680 ml cans for about $2.50 to $3.00. Michealinis frozen used to be .75 or so i would say stick up that is cheap not any more those are like near $3. A 4 litre jug of milk used to be $4.69 pre covid that is $5.68 or so one of the lesser price increase. Going out to eat has also gone up. At one time one person with a fair sized appetite could dine within $10 to $15 most places are now $20 to $25 if you have a fair size appetite. Pre covid A and W veggie combo meal was $12.69 and even during a good chunk of covid but when i went after a bit of time it has become $15.69. You would think when there is an announcement of endemic and if in normal times things should be on lower side of things but they got jacked and will stay high. Raise rates it becomes extremely tough on people borrowing capital to keep their businesses going and this will badly continue to hurt the small to medium businesses that are left and trying to survive and bigger ones who want tons of profits while they can weather the storm they will not put more money in and that is the huge problem with everything going on despite people sitting on piles of cash. Raising rates was and is simply stupid to really get out you need to cut them. It hasnt worked since day one and like i said these guys are just ignorant for constantly doing so on the basis of robustness of job and consumer spendings all false relatives the more key things were grocery prices being ridiculously high people having problems paying their mortgages and constant supply chain issues a slow down in the overall economy which needs to get back on track and until it does you cut not raise rates.
Anyways all stocks will have extremely protracted growth after quadrupling the 52 week low as the best case but most i see are about 1.5 to 2 times on the best side of gains while the majority of stocks are sitting at bottom hardly moving. Bottom line doubling out in shiatty market conditions if and when it happens is the righr move even in a bull market. Until the rates get cut all stocks will see limited protracted growth taking forever to move up. But again the banks have nothing to do with a so called housing bubble even if the so called bubble burst and the values of the homes dropped 20 to 40 percent the issue is not with housing affordability per say and with the banks but the instability of mortgage rates where it is always said prime plus 1. You have 1 percent interest your mortgage is 2 percent thats to my understansing prime plus 1 when we were seeing .25 percent on our hard earnings from the banks in interest the mortgage rates were 1.25 percent vs what is now 6 or so percent thats a huge jump man!!! It is tough enough as i said even at every quarter percent hike. The governments have to stop being stupid because what they have kept doing has not worked and now need to acknowledge as i said and all those who rightly stated it we are in a recession no soft landing all that was bs. These guys have wasted enough time we need to get back on track...cut the damn rates already call it as it is and let those flush with cash start using it to jumpstart the economy.