Investors bet against Canada

Why is everybody picking on us?

Investors are betting against our dollar, equities, even our bank stocks.

Markets also see further declines for the loonie, which was quoted buying 84 U.S. cents at 11:35 a.m. and has dropped 8.4% against its U.S. counterpart over the past year. Wagers against the currency outnumbered those for it — so-called net shorts — by 17,087 positions as of Jan. 6, the most since Dec. 5,  according to data from the Washington-based Commodity Futures Trading Commission.

For Merrill Lynch, the risk is the slowdown in the oilsands will seep into a housing market “already saddled with near-record levels of household leverage.”

Canada’s ratio of household debt to disposable income rose to a record 162.6% between July and September, according to data released last month. Benchmark interest rates of 1% have fanned a house-buying frenzy that sent 2014 sales up 6.7% in Toronto and 16% in Vancouver.

Read the full article in the Financial Post.

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Sony
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Sony
Yunak
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Yunak

As crisis starts to unfold in Canada, public and government should be after all those “Immigrant Investors” that flooded BC and Ontario, looking into their businesses, investments and performances. Hard times call for them to step up to the plate and shows the benefit of bringing them to Canada with fresh business ideas, entrepreneurial experience and lots of money to invest in their new country therefore contribute to overall prosperity and advancement. I think we were lucky and smart to bring all of those capable and successful wealthy immigrant investors in Canada and monetize on their past experience while getting them to lead a Canada’s new economical boom.

flaneur
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flaneur

Bombardier is laying off 1,700 from aerospace division, and Target Canada is closing all 133 locations.

South for the winter
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South for the winter

Mass exodus for sure – Target is closing all its stores in Canada

What do they know? trying to read between the lines here….

http://abcnews.go.com/Business/wireStory/target-exit-canada-28242737

Hello
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Hello

I wouldn’t call it an exodus as much as a failure for Target to reproduce a successful formula up here.

Our economy is hurting but Target made poor business decisions.

Bull! Bull! Bull!
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Bull! Bull! Bull!

meanwhile a new T&T opened in richmond. also, a new asian super market opened where the old rona was on bridgeport.

CanucksBoy
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CanucksBoy

Target can never get it right in Canada – with the impending recession in Canada – now was the right time to be a discount low-cost retailer – it is the tony stores that will be losing sales in the future-

instead Target exits Canada at a time when it is unlikely to find any buyer for the stores –

this mentality of short-termism in corporate head office is endemic in big business- they can only look at the current position and act only in a manner likely to give an immediate boost to their share price – no concept of long term planning.

interestimge time ahead
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interestimge time ahead

‘China’s Warren Buffett’ selling off his China assets
http://tinyurl.com/m4q8cz8

we`re diffrent
http://tinyurl.com/orz3xxu

@2
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@2

I voted you up even though I`m entirely with you. It`s a complicated topic wo digressing in tandem.

South for the winter
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South for the winter
@5 – if you read the first post – you’ll see Target is not the only big company. Point i’m making is that Jobs are being lost – no matter how we slice it… again just trying to read between the lines. Here is another http://en.wikipedia.org/wiki/Future_Shop On January 31, 2013 Best Buy announced the closure of 15 stores in Canada with 7 Best Buy and 8 Future Shop locations. The closures were immediate and leaving Future Shop with 139 stores.[6] …………. On January 30, 2014, 950 full-time BestBuy and Future Shop workers were laid off in an attempt to restructure layers of management and better provide service to the growing online market that Amazon operates in. Ron Wilson, president and CEO of BestBuy Canada, noted that online sales have grown over 50% over 2013.[9] Despite the restructuring and lay-offs, Future… Read more »
space889
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space889
@Yunak – Exactly why Canada has so few succesful businesses, everyone is expecting other people to do the heavy lifting and ride their coat tail. How about roll up your sleeve and do your own work. And seriously, if you are a rich business person with a successful business, why the hell would you want to move to a new country where you don’t know anyone and start from scratch again? Why would you want to do that? The only reason I can think of is if you are expanding your existing business, or start some hobby business cuz you got more $$$ than you know what to do with. Most biz immigrants just buy existing biz from retiring babyboomers who can’t sell their ailing marginal biz to anyone else for a high price. Work their required years, get their… Read more »
Shut It Down Already
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Shut It Down Already

@10, good thing Amazon is about to open a 1000-strong office here in Vancouver then. Or would you prefer retail jobs?

Hello
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Hello

@12

Funny you should mention. I grabbed lunch with my buddy that works there. He said that number is BS. It’s speculation based off the floor space they’ve leased in the new TELUS building and the maximum number of people they could have there. Realistically they’ll hire another 200 over the next 18 months.

Still, tech is doing great here and will probably do well as the low dollar makes it a deal for companies vs the valley etc.

bullwhip29
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bullwhip29

@ #4
imho target is pulling the plug too soon on their Cdn expansion. with the 3 largest mkts in Cda all being near the US border, it was not a complete shock that they experienced some rough patches with respect to their Cdn rollout (as many other retailers have also experienced). given the new reality for the loonie, many cross border shoppers are now faced with resorting to plan B, which is getting the best bang for your buck north of the border. the costcos, walmarts and targets of the world will be the first businesses people turn to in time of need.

bullwhip29
Guest
bullwhip29

@ #6
btw, that new store is not a T&T. in fact, i expect T&T (now owned by Loblaws) to put them out of business in the next 12-18 mos. imho super smart move by the westons

bullwhip29
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bullwhip29

cont’d…

@ #6
sorry, i didnt mean to suggest new asian superstore was in fact a T&T. nevertheless, a for lease sign will be posted on this store front in the not too distant future

bullwhip29
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bullwhip29

@ #1
the fact that sony is closing a whopping 14 stores (representing 90 ppl) across all of Cda says more about the company itself than anything else

Softy
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Softy

No rate increase until 2017.

Why Canadians can expect low interest rates for longer — much longer: Morgan Stanley

In the most bearish forecast yet, Wall Street giant says not only will the Bank of Canada not raise rates until 2017, there is a 1 in 3 chance it will cut them…

http://www.financialpost.com/index.html

Softy
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Softy
Mortgageslave
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Mortgageslave

@Softy – doesn’t matter in regards to Mortgages. If you read Turner last night, regulators have made it more difficult to qualify for mortgages, again yesterday. I understand what you’re trying to suggest but this is nearly the same as a rate increase. The taps are shut off.

tedeastside
Member
tedeastside

Canada is falling apart, everything closing, mass layoffs left right and center
Oilsands seeing mass layoffs , canada’s only industry falling apart,

Mortgageslave
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Mortgageslave

Again this rise in housing in fueled by #1 – debt. That won’t continue. Guess what else won’t continue. Not sure how much more obvious it can be…

Softy
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Softy

“regulators have made it more difficult to qualify for mortgages, again yesterday.”

This will have the same effect as the other 7 or 8 mortgage tightening moves over the past five or so years.

bullwhip29
Guest
bullwhip29
@ #18/19 as much as the powers that be will try to spin this as being a bullish thing, that couldn’t be any further from the truth. honestly, i am sick of hearing about all this BS regarding low rates, overborrowing and what not. imho, what we’re witnessing right now is a realization that much of the world is on the verge of succumbing to a japanese style deflationary collapse. that is the reason rates will stay near zero for a lot longer. people from all walks of life have had 6-7 yrs (post financial crisis) to get their finances in order and perform so called personal stress tests, but have for the most part done either nothing about it or perhaps made the situation even worse. well folks, it is just about time for the tide to go out.… Read more »
bullwhip29
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bullwhip29

@ #23

don’t think so this time around. cmhc et al are trying to exit the business as quietly and discretely as possible. the more risk the banks have to take on themselves, the less likely the joe averages of the world will be approved for a mortgage (due to far more stringent guidelines and/or increased costs)

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