May 2015 Canadian Economic Fundamentals

Ally · May 28, 2015

A positive view on our housing market from the US

These days, the debate about isn’t so much whether Canada’s real estate is overpriced, but by how much. Is it 63 per cent too pricey, as Deutsche Bank recently estimated, or just 30 per cent overvalued, as the Bank of Canada suggested last fall?

In the eyes of George H. Ross, one of Donald Trump’s closest advisers and a familiar face standing by Trump’s side on “The Apprentice,” the answer is neither. Ross says the Canadian real estate market — both residential and commercial — is undervalued.

Read the full article here.

Ally · May 28, 2015

Make sure your tenants see this. For young adults, stock market a better investment than home ownership

A veteran Bay Street entrepreneur wants to demolish the idea that it’s smart to buy a house as soon as you can after graduating and starting a career.

Joe Canavan urges young adults to invest in the stock market and avoid home ownership until their mid- to late-30s. Young keeners who buy homes are limiting themselves, he says. They’re tying themselves down at a time when flexibility is a real asset, and they’re building less wealth.

Read the full article here.

Ally · May 28, 2015

Engineering grad repays $30,000 in debt in under two years. Get's realistic about debt and solves it

When Pat Marquez graduated from university in 2013, he owed thousands in student loans. To commute to his new job, he needed to buy a car, leaving him with $30,000 in student and auto debt.

But instead of taking a decade to slowly erase his debt load, the 23-year-old Windsor resident paid off his car debt in four months and his student loans in a year-and-a-half.

Read the full article here.

Ally · May 29, 2015

Recession to unfold in Alberta, Newfoundland, while BC powers ahead

Expect a recession this year in Alberta and Newfoundland and Labrador, while British Columbia will have the highest growth, according to a new outlook from the Conference Board of Canada.

There are "winds of change" blowing through the Canadian economy, it said, that will shift economic growth to Central Canada, Manitoba and B.C.

Read the full article here.

Ally · May 29, 2015

The darker side of solar power

The Saudi Arabian oil minister’s recent comment that the world’s largest petroleum producer sees a postfossil-fuel world in which his country becomes a solar-power superpower must have comforted climate activists that even the worst offenders can come around. After all, what could be more redemptive than turning abandoned oil fields into solar farms?

Solar power’s image as “clean” and “limitless” has led princes and politicians alike to dole out huge subsidies to bask in its glow. Under the 2009 Green Energy Act, Ontario agreed to pay solar power operators as much as 10 times the market rate for the electricity they produce under 20-year contracts.

Read the full article here.

Ally · May 29, 2015

The tanker market is sending a big warning to oil bulls

Four months into oil’s rebound from a six-year low, the tanker market is sending a clear signal that the rally is under threat.

A sudden surge in demand for supertankers drove benchmark charter rates 57 percent higher in the two weeks through May 20. OPEC will have almost half a billion barrels of oil in transit to buyers at the start of June, the most this year, while analysts say about 20 million barrels is being stored on ships in another indication the glut has yet to dissipate.

Read the full article here.

Ally · Jun 1, 2015

BMO on the economy: 'Unluckiest. Recovery. Ever.'

It’s troubling that we still refer to this as a “recovery” so long after the fact.

And as Bank of Montreal’s chief economist puts it, the “unluckiest” recovery ever.

Read the full article here.

Ally · Jun 1, 2015

CMHC goes from insuring 90% of new mortgages to only 50% - and that's as low as it plans to go

Canada’s national housing agency says it’s now insuring a record low 50 per cent of new residential mortgages, and it doesn’t intend to let it drop any further.

Read the full article here.

Ally · Jun 1, 2015

$100 oil: Will we ever see it again?

The oil price crash of the last year has the energy world wondering if crude will ever again see the triple-digit prices of the last decade. For its part, the oil industry is both wistful and hopeful that prices will some day regain their former glory.

What's at stake is billions of dollars for the Canadian industry, thousands of jobs across the country and, of course, the price we all pay at the pumps.

Read the full article here.

Ally · Jun 1, 2015

Turning to real estate for yield generation

Investors are constantly seeking good diversifiers for their portfolios. Whether diversification is sought by sector or geography, there are a number of opportunities that can be explored. One asset class that can often play a strategic role in broadening exposure within Canadian holdings, as well as global markets, is real estate investment trusts (REITs).

Read the full article here.

Ally · Jun 1, 2015

No Achilles heel, resource sector has super-sized impact on economy

Canada’s reliance on natural resources – particularly oil and gas production – is constantly held up as an economic and environmental weakness that needs to be fixed.

But a new study from the Ottawa-based Macdonald-Laurier Institute provides a much-needed reality check: resources are more important to Canada than many realize – or want to admit.

Read the full article here.

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May 2015 Canadian Economic Fundamentals

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