Suncor Energy Inc T.SU

Deflationary Pressure

[Experienced]

Saw a news report that lamented the drop in housing pricing prices across Canada. Sooo..is this a bad thing? One one hand it is a natural consequence of higher interest rates. On the other hand, it means that monetary (and lags) are starting to work. For investors? It means.....take this into account in asset allocation decisions.

[Torontojay]

I've watched a number of videos on how Canadian real estate is going to skyrocket in the spring. These people are so delusional that they must think this time is different. Historically speaking, when the Fed lowers rates, it means a recession is just around the corner and that the unemployment begins to skyrocket thereafter. There will be no pent up demand in the spring when people are no

[Marty47]

Agree about the price of home going down but more  outside big city , rural , cottage condos ...but remember we need listening the Trudy's " the budget  will fix by itself " or " interest rate will stay low for a long time " lmao 

[mrbb]

depend on regions, BC and Ont., yes, less so in AB and SK 

[wkrpradio]

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[PabloLafortune]

The two factors of Canadian housing are interest rates and immigration.  As we know, governments can't afford to pay high interest rates (5% +) on their debt otherwise the entire current budget would eventually (30-40 years later) be consumed by interest payments (based on rate of growth of government debt). The irony of course is that they were more than willing to impose high interest

[wkrpradio]

What most people have left out in the inflation equation is the CAD. King Justin's war on energy and mining , along with his lavish spending, has driven down the CAD about 30% since the glory days of the Harper government. A lower CAD means a Lower Standard of Living for serfs residing in Canada. 

[Torontojay]

Your statement is flawed and incorrect. The US $ weakened because of the GFC which took the Canadian dollar above par. The US dollar recovered prior to the pandemic and was able to purchase anywhere from C $1.30 to C $1.35 compared to today which could purchase C $1.34.

[wkrpradio]

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[Torontojay]

This post has been removed in accordance with Community Policy

[wkrpradio]

This post has been removed in accordance with Community Policy

[wkrpradio]

Fake news and misinformation. 

[Experienced]

Here are my thoughts on the subject... This is a great discussion and in a sense all of you are making valid points.  That said, it is all really water under the bridge and we are where are and the question for me as an investor is - "What do I do about it going forward?" A lot will depend on your financial situation and your investment objectives.  Quite frankly, IMO, the