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Game over for Toronto housing bubble - new home sales down 70% in August


FiveSigma

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So as the expression goes, "America sneezes and the world gets a cold"

 

This last sneeze Canada seemed pretty darn immune.  So I wonder what happens to the US when Canada finally sneezes?

 

It seems like now would be a good time to get a rough wish list of Canadian equities together if the market starts to fall with housing. 

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If past two cycles are of any indication (1989-1993 and 2008-2010), then Chartered banks that are currently trading at 2x book will likely get cut in half (to book value).

 

That will be the time to buy them.

 

Well, IIRC, Royal was at a slight premium, but many others were much lower than book.  At least when I bought a few.  ;D

 

However, what happens with an Irish-type situation and a 50% real estate decline?

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A few weeks ago I mentioned that I was to be out with a Toronto condo developer. I wanted to report back to the board on my discussion but found it to be so pathetic that I couldn't bring myself to jot any of it down (all the reasons for continued health were listed in the articles in this thread, especially immigration). Yumm, that Koolaid tastes good.

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