- “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