Some people express a lack of faith in current house prices by delaying buying or moving to better economic climates.
Others might make a friendly wager with a co-worker that house prices will be lower in 2014 than they are in 2013.
But how confident are you that a market correction will occur not just in Vancouver, but all across Canada?
And even if the national market corrected sharply do you think that would have much impact on our banks or would CMHC insurance protect them from any dramatic losses?
Do you really think a housing market crash would have as much effect on our economy as it did in the USA?
Would you be willing to bet 95% of your assets on the likelyhood of such an occurrence?
Vijai Mohan has made an all-in bet against Canada.
The founder of a small San Francisco-based hedge fund called Hyphen Partners LP has staked 95 per cent of his investors’ assets on a wager that the country’s housing market and banking sector are about to come apart at the seams. Mr. Mohan has amassed large short positions on Canadian bank shares and the loonie, betting their values will fall sharply.
“Canada faces two risks,” said Mr. Mohan in an interview. “Very few people are looking at those risks simultaneously. That collectively presents a lot of opportunity” – for someone looking to profit from Canada’s misfortunes.
Read the full article over at the Globe and Mail.