As Canadian crude fathoms a record low this week (chart below), we have news today that Canadian home sales fell further in October.
Heavily indebted and unprepared, the global downturn is coming at a particularly vulnerable time for Canada. Even worse, what savings and pensions households do own have been funnelled into over-valued corporate securities and funds that are also falling in value. This is a very destructive way to manage a business cycle.
The segment below covers many of the factors working against Canada today but also makes the classic error of blaming Trump (rather than self-destructive behaviours and policies adopted in Canada), as well as suggesting Canadian banks may somehow be protected from downside as global markets drop.
Canadian financial shares lost 50% in the last two bear markets, and they are more risk-exposed today than either of those cycles. Beware the usual false narratives from mainstream commentators, defensive they are not. Here is a direct video link.
;
