These days it’s even harder to ‘see the forest for the trees…’ as we’re bombarded with news, advertisements, new TV series, text messages and other information. In this article we look at a series of pointers on the Canadian economy, which will affect our daily lives for years to come.
We start with our government and no better place than bank governor Stephen Poloz who delivered a speech last week suggesting our interest rates are likely to remain low for the next decade, yes decade.
Mr Poloz suggested in his speech that the obstacles likely to hinder Canadian economic growth over the next decade includes aging of the Canadian population. This is likely to weigh on growth potential causing the Canadian economy to follow a weaker trend, which would imply low interest rates. Here is the Financial Post’s report on his speech.
With interest rates at 30 year lows and our bank governor’s suggestion that this is unlikely to change much for a decade, now may be a good time to consider borrowing to invest. TriDelta’s president, Ted Rechtshaffen authored a news article in the Financial Post a few weeks ago that addressed the issue of borrowing to invest head on. Click here to read the full article.
The world appears to be in a better place since the 2009 economic crisis although obstacles exist. One key to the Canadian economy is clearly real estate.
CIBC’s Benjamin Tal has done a very good job explaining Canadian real estate and explains why we are OK, while a noted US Hedge Fund manager calls for despair in the Canadian real estate market. You can read the article outlining their viewpoints here.
The key is that if low rates are around for a decade, this represents a major support for sustainable real estate pricing. This may not mean a booming Canadian economy, but with stable real estate, it significantly increases the likelihood of a stable Canada.
Article compiled by Anton Tucker, Executive Vice President