Seeking Alpha

Pimco cuts Canada exposure over housing worry

  • “I’ve been talking with clients and writing about how the housing market is overvalued,” says Pimco's Ed Devlin, who oversees Canadian investments for the firm. “The change this year would be that I actually think it starts this year.”
  • Bill Gross' $237B Total Return Fund (ETF version: BOND) had about 2% of its portfolio in Canadian debt at last report vs. 4% a year earlier.
  • Not the first to point to a bubbly Canadian housing market, Devlin is looking for a gradual decline over the next 2-5 years, not a sudden collapse, and sees "buy the dip" opportunities in the loonie (FXC) which has already fallen sharply vs. the greenback over the last 18 months.
  • ETFs: EWC, CNDA, FCAN, EWCS
From other sites
Comments (1)
  • Hendershott
    , contributor
    Comments (1622) | Send Message
     
    We have a similar overvaluation in S. Cal. In LA, a small house in a moderate neighborhood is over $400k now.
    3 Mar 2014, 09:49 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs