David Fischer

Canada: The Industrialized Market for the Coming Decade

I disagree with much said in the article. Aside from the obvious commodities go up when USD goes down, but that is not to say these prices have to stay high due to this fact. Canada's western provinces from Manitoba to BC have not seen any downturn yet and have remained high, but not because of real demand, but rather delayed demand and a low USD. Many smart real estate investors in Canada are starting to sell their Canadian holdings and buying inexpensive foreclosures en masse in Florida, California and Arizona, 70 k for a 2000 square foot newer home, compared to 400 to 700 k in most of the western provinces. Hmm easy to do the math on this one. Most of the growth in Manitoba for instance was delayed growth from large investments, but those investments have fallen off a cliff this summer, and this will be noticed soon. Smart money will leave Canada for the US, of course the doom and gloom is still on the table, and many are not even looking in their own back yard for investments. These homes are cash flow positive, find me one cash flow positive real estate investment in western Canada, maybe in the repressed industrial areas in Ontario, but not in the west. And commodities demand will only continue to slow and supply will increase, real demand is dropping for energy in the US, and 120 oil? But I like the optimism none the less.